As good as it gets - Singapore's economy - Brief Article

Business Asia, Dec 13, 1999

True to Its conservative nature, Singapore Is not taking Its tigerish status for granted

The worst is over for Singapore. But, as Deputy Prime Minister Lee Hsien Loong admits, much work still needs to be done to shore up the city-state's position as one of Asia's leading tigers in the new century.

Lee, widely tipped to become Singapore's next Prime Minister, says while "things have turned out much better than expected" for the economy, there are still some risk patches that need attention.

"It is still too early to declare victory. But so far we've come through with no major mishaps. We have benefited from a strong and stable foundation of policies built up over many years," he said.

"We must be especially careful with the manufacturing sector. The manufacturing sector's health will have a significant impact on our export competitiveness."

In overall terms, the government expects the Singapore economy to expand by between 4.5 and 6.5 per cent in 2000, a figure which closely matches analysts' estimates of 5.9 per cent growth.

However, a slowdown in the US -- Singapore's biggest export market -- could adversely affect economic growth.

The manufacturing sector should lead the way for Singapore next year, with the industry accounting for most of its 6.7 per cent third-quarter growth for 1999.

And the sector is bound to grow further, with rising world demand for cell phones and computer chips.

Of greater immediate concern for Singapore's government is a recent slowdown in its financial services sector, which makes up 29 per cent of the economy.

The industry shrank by 25.2 per cent in the third quarter of 1999, but the recent opening up of the sector to more foreign competition should see it bounce back strongly in 2000.

Confidence is also returning. Most business surveys show executives expect better prospects for the coming six months, while private consumption has been rising steadily.

SINGAPORE

Head of Government: Prime Minister Goh Chok Tung

Population: 3.9 million (1998)

GDP: US$84.4b (1998)

GDP per capita: US$21,800 (1998)

Strengths: Political and economic stability; focus on IT should start to pay off; liberal financial sector

Unknowns: Susceptibility to economic shocks from its neighbours; shortage of natural resources

w.w.w. (websites worth watching)

www.chinaonline.com

An excellent, comprehensive site detailing daily news, opinions and market trends on China. Comes from a US angle, but still highly informative for regional browsers.

www.charlton.com.au

The home site of The Charlton Group, which is the publisher of business titles including Business Asia, Australia, Banking & Finance, Business Class, Europe Business Review and Overseas Trading.

www.asiapulse.com

A weekly summary of news for business travellers in Asia and the Pacific prepared by Asia Pulse -- the real-time, Asia-based wire with exclusive news and market intelligence.

www.dfat.gov.au

An Australian site for the Department of Foreign Affairs and Trade that chronicles the latest government initiatives and a large database of statistical information on exporting and importing.

www.mckinseyquarterly.com

From the distinguished McKinsey consultancy stable, this site features in-depth articles on many facets of world business. It is US-based, but has many excellent Asia-related articles.

www.efic.gov.au

An Australian site for the Export Finance & Insurance Corporation. Check out its Asia business risk ratings.

www.jetro.go.jp/top/index.html

The Japan External Trade Organisation (JETRO) is a nonprofit, Japanese government group that promotes beneficial trade and economic relations between Japan and other nations.

www.apecsec.org.sg

An official site of the Asia Pacific Economic Cooperation. If you want information on APEC, this is a good starting point.

www.aric.adb.org

The home of the Asia Recovery Information Centre, a website produced by the Asian Development Bank.