Global economic crunch may pose short-term turbulence for S’pore
The growth of the affluent middle class in Asia has slowed due to the weak global economy. But economists are confident that the level of disposable income in the region will continue to rise in the long run.
They said that the Economic Development Board is doing the right thing by focusing on sectors like urban solutions and personal wellness.
Vishnu Varathan, regional economist, Forecast, said: “These areas are things that are more forward looking. As affluence grows, these are areas where consumers want to spend more. So these are very strategic places to be when growth is taking off.”
But it could 10 to 15 years before such industries become the main drivers of growth. For now, manufacturing, financial services, and construction remain the key economic pillars.
Song Seng Wun, CEO and regional economist, CIMB-GK Research, said: “We will find that construction’s share of GDP will be higher over the next two to three years. You’ll find that’s the one sector that will continue to generate job opportunities for locals and foreigners as well.”
Mr Vishnu Varathan added: “From the manufacturing point of view, we will probably see that the more specialized areas of biomed will lead. We’ll be positioned well to take off.”
Economists also feel that Singapore’s fate remains highly dependent on external, rather than domestic dynamics.
Mr Song continued: “For Singapore, it’s still very much tied to global growth. It may mean we see a period of below-trend growth or even recessionary conditions as global demand slows sharply. But like previous periods after each downturn, we should see a big rebound.”
Observers said Singapore could continue to see a period of below-trend growth in tandem with the global slowdown. But they are also expecting a big rebound that has historically followed such downturns. - CNA/vm
Source : Channel NewsAsia - 22 Aug 2008
Loading ...
Post a Comment
Tell me a bit about yourself; who you are, where you're from, what information you would like to see on this site. As I continue to provide you with Singapore property happenings, your feedback will encourage me to post more frequently. Thank you.