S’pore economy may grow by more than 3% this year, says PM Lee

SINGAPORE - The Republic’s economic growth this year may beat the official forecast and exceed 3 per cent, Prime Minister Lee Hsien Loong said on Sunday (November 19).

Stressing the need to press on with economic restructuring, he said the Singapore economy has benefited from the global economic pick-up and an uptick in the country’s productivity.

Addressing party members at the People’s Action Party (PAP) convention this year, Mr Lee said: “The world economy is doing well, and we are benefiting from that. Our unemployment remains low, and wages have gone up. Most significantly, productivity has picked up.”

Mr Lee, who is the PAP secretary-general, noted that the government has initially expected 1.5 per cent growth. It subsequently revised its forecast to between 2 and 3 per cent. “Now it looks like we may exceed 3 per cent growth,” he said. However, to sustain this growth, Singapore must push ahead with its plans to restructure the economy, Mr Lee added.

“Our workers must acquire the right skills and capabilities, know how to upgrade themselves, and be confident about their futures and livelihoods. Our companies also have to adapt, upgrade and compete in the global marketplace,” he said. These will be achieved through various efforts such as SkillsFuture, initiatives by Workforce Singapore to match people and jobs, and creating jobs by supporting Singapore enterprises to grow and compete overseas.

Mr Lee reiterated that economic restructuring will not be a totally smooth journey. “But we have done it before and we can do it again. The Government will support and help workers and companies. As long as we stick together, and make the effort, we will get it done,” he said.

The Ministry of Trade and Industry will release the third quarter 2017 economic survey of Singapore on Thursday. The report will give the final growth figures for the economy for the July to September quarter. Economic growth for the first two quarters of the year has beat expectations, with the economy growing 2.5 per cent between January and March, and 2.9 per cent between April and June.