Singapore economic growth target

Singapore has set a realistic economic growth target of 2 to 3% growth in the next few years although it is capable of a higher growth in response to uncertain worldwide environment as it transforms into a developed nation.

The Government is not aiming for the high growth like the past few years. Singapore has toughen its overseas labour supply policy to moderate its growth potential to meet its medium growth target of 2 to 3% which is a good growth band for advanced economies.

As it is adjusting to the uncertain economies of the European nations and United States of America, moderating its growth will help to maintain a sustainable growth rate instead of drastic peak and trough cycle.

Companies that cannot transform into more productive model may be made redundant in the course of moderating growth.

However for current high growth Hospitality and F&B industry, they will need to improve productivity to compensate for the tigher labour to continue to enjoy the growth trend.

As the supply of foreign labour tighten, our local labour market will remain tight which will help in improving the earning power of working residents.

In the year 2010, our Economic Strategies Committee has put a growth target of 3 to 5% annually till 2020.

Our government has projected 2013 economic growth to be in the range from 1 to 3%.

10 Dec 2012