Singapore ‘sailing stormy waters’

Press, 4 March 1983, Page 11

Singapore ‘sailing stormy waters’

NZPA-Reuter Singapore The Singapore Government will present its Budget on Friday amid fears that the island' State, buffeted by international economic currents. is heading for its worst-ever performance this vear.

The Budget, prepared by the Minister of Trade and Industry. Mr Tony Tan. was not expected to spring any surprises on the foreign business community or the local population, economists said.

They said any tax incentives Mr Tan might propose were likely to be only cosmetic, aimed at providing a little .stimulus to foreign investors in the financial and industrial sectors.

"We are not expecting any fundamental changes, particularly as Singapore is sailing stormy waters. Mr Tan is likely to produce a workmanlike Budget." said Mr Roderick Maclean, executive director of the Singapore International Chamber of Commerce.

An official survey released this week said that after three years of rapid growth. Singapore’s economy had lost its vigour to end 1982 with a 6.3 per cent growth rate, the lowest in the last seven years. But worse is yet to come, according to the survey.

The Prime Minister. Mr Lee Kuan Yew, has also

warned Singapore that its targeted growth rate of 4 per cent for this year might have to be pruned unless there is a quick economic upturn in the United States and Europe. Singapore, an island of 620 square kilometre with a population of 2.4 M. has no natural resources but has developed into a financial and industrial hub of SouthEast Asia. Mr Maclean said that despite the slowing of economic growth. Singapore had no reason to sink into gloom.

"We are not yet as severely affected as some of our neighbours." he added.