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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.
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.
