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revise downwards so many times,
i warned three years ago to downgrade, people laugh at me, say i loser
i say never mind call me what you want, just remember take it easy, spend within your means and always carry a song in your heart
Published March 5, 2009
Singapore economy may contract by 10%: MM Lee
He also plays down speculation of an early election
By CHUANG PECK MING
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(SINGAPORE) Prime Minister Lee Hsien Loong sketched the scenario of an 8 per cent contraction for the Singapore economy last week - sharper than a 2-5 per cent shrinkage the government currently expects.
Last night, Minister Mentor Lee Kuan Yew raised the possibility of the economy contracting by 10 per cent.
'If the second quarter shows further drop of another 30-40 per cent (in cargo handled by PSA), it might go down to minus 10 per cent,' he said at a Thomson Reuters' Newsmaker Event dialogue.
But Mr Lee was quick to add that in the same way Singapore's economy 'goes down precipitously, it will go up precipitously'.
'That's something we have expected because we are so dependent on international trade - and that's why we keep large reserves,' he said. 'We must expect that in the nature of free markets, there will be such a crash, but we never expect it so soon, so drastic.'
Prime Minister Lee first raised the possibility of the economy contracting by more than 5 per cent two Sundays ago at a Singapore Tripartism Forum dialogue.
About a week later, in an interview with business news channel CNBC, he said the contraction could be as sharp as 8 per cent.
Minister Mentor Lee last night put the minus 8 per cent figure on firmer ground, when he noted the 30 per cent fall in cargo handled by PSA.
'That's surely need to shift our expectation from minus 5 to minus 8 per cent (growth),' he said.
Mr Lee also took note of Singapore's weak traditional Western markets.
'I don't see us growing because the economy is not big enough, we don't consume enough,' he said. 'So we have to depend on the world market - and the world market means US, EU and Japan. There's no running away from that. They must recover before we bounce back.'
Mr Lee also does not see the global financial architecture disappearing. 'Financial centres we know would make a comeback - although no one knows when.
'You need London, New York, Beijing, Hong Kong and Singapore to pump and circulate money and finance around the world,' he said. 'Otherwise, economic activity will cease.'
But Mr Lee expects Singapore to bounce back faster than London because the latter had expanded too fast.
In an interview with Reuters before the dialogue, Mr Lee played down speculation of an early general election. He suggested that the government may be prepared to weather the recession rather than go to voters before the recession bites too hard.
The election is not due until 2012, but talks of an early poll were sparked recently by announcements that the electorate registers were updated and changes made to the boundaries of polling districts.
Mr Lee told Reuters there was 'enormous speculation' about an imminent election, although he stressed the decision was up to Prime Minister Lee.
But asked if there was a chance that it would be held before 2011, he said, 'I don't see any purpose.'
i warned three years ago to downgrade, people laugh at me, say i loser
i say never mind call me what you want, just remember take it easy, spend within your means and always carry a song in your heart
Published March 5, 2009
Singapore economy may contract by 10%: MM Lee
He also plays down speculation of an early election
By CHUANG PECK MING
Email this article
Print article
Feedback
(SINGAPORE) Prime Minister Lee Hsien Loong sketched the scenario of an 8 per cent contraction for the Singapore economy last week - sharper than a 2-5 per cent shrinkage the government currently expects.
Last night, Minister Mentor Lee Kuan Yew raised the possibility of the economy contracting by 10 per cent.
'If the second quarter shows further drop of another 30-40 per cent (in cargo handled by PSA), it might go down to minus 10 per cent,' he said at a Thomson Reuters' Newsmaker Event dialogue.
But Mr Lee was quick to add that in the same way Singapore's economy 'goes down precipitously, it will go up precipitously'.
'That's something we have expected because we are so dependent on international trade - and that's why we keep large reserves,' he said. 'We must expect that in the nature of free markets, there will be such a crash, but we never expect it so soon, so drastic.'
Prime Minister Lee first raised the possibility of the economy contracting by more than 5 per cent two Sundays ago at a Singapore Tripartism Forum dialogue.
About a week later, in an interview with business news channel CNBC, he said the contraction could be as sharp as 8 per cent.
Minister Mentor Lee last night put the minus 8 per cent figure on firmer ground, when he noted the 30 per cent fall in cargo handled by PSA.
'That's surely need to shift our expectation from minus 5 to minus 8 per cent (growth),' he said.
Mr Lee also took note of Singapore's weak traditional Western markets.
'I don't see us growing because the economy is not big enough, we don't consume enough,' he said. 'So we have to depend on the world market - and the world market means US, EU and Japan. There's no running away from that. They must recover before we bounce back.'
Mr Lee also does not see the global financial architecture disappearing. 'Financial centres we know would make a comeback - although no one knows when.
'You need London, New York, Beijing, Hong Kong and Singapore to pump and circulate money and finance around the world,' he said. 'Otherwise, economic activity will cease.'
But Mr Lee expects Singapore to bounce back faster than London because the latter had expanded too fast.
In an interview with Reuters before the dialogue, Mr Lee played down speculation of an early general election. He suggested that the government may be prepared to weather the recession rather than go to voters before the recession bites too hard.
The election is not due until 2012, but talks of an early poll were sparked recently by announcements that the electorate registers were updated and changes made to the boundaries of polling districts.
Mr Lee told Reuters there was 'enormous speculation' about an imminent election, although he stressed the decision was up to Prime Minister Lee.
But asked if there was a chance that it would be held before 2011, he said, 'I don't see any purpose.'
