SINGAPORE: There would be no need for stimulus
measures in Singapore this year, Senior Minister of State for Trade
and Industry S Iswaran said in parliament on
Monday.
In fact, he said Singapore would need to be watchful
of over-heating risks and rising inflationary pressures as the
labour market tightens and capacity constraints become more
binding.
Over-heating follows a prolonged period of good
economic growth leading to higher levels of inflation, which could
adversely impact economic prosperity.
Mr Iswaran added that expected growth of four to six per cent for
this year would still be above the government's medium-term growth
potential estimate of around three to five per cent per
annum.
The single digit growth would follow last year's double digit GDP
growth of almost 15 per cent, which Mr Iswaran called "exceptional
and therefore not an appropriate indication of Singapore's longer
term growth potential".
Going forward Mr Iswaran said with the economy at "full
employment", the emphasis would be on raising workforce
productivity and increasing economic competitiveness over the
medium term.
-CNA/wk