July 17, 2009

Singapore out of recession


SINGAPORE, July 17 — Singapore roared out of recession with growth of 20.4 per cent in the second quarter over the previous quarter, marking the first expansion in a year and prompting the government to raise its 2009 growth forecast.
The flash estimates, which are based mainly on April and May numbers, showed growth in the construction sector and a sharp improvement in manufacturing, thanks to the drugs cluster.
“The Singapore economy is back, and back with a vengeance,” said HSBC economist Robert Prior-Wandesforde, who expects other regional economies to produce similar rallies.
The government also revised its 2009 growth forecast upwards after three downgrades.
The Ministry of Trade and Industry (MTI) now expects the economy to contract by 4 to 6 per cent instead of the 6 to 9 per cent decline predicted in April, thanks to the “less severe contraction” in the first half of the year.
The flash estimates showed that the economy surged 20.4 per cent compared with the first quarter — a far better figure than the experts had tipped and the first positive quarter after four consecutive quarters of contraction.
However, the economy was still down 3.7 per cent compared with the same period last year, its third straight year-on-year period of slump but again better than market expectations.
The brighter figures also mean Singapore is the first Asian economy out of a technical recession, defined as at least two consecutive quarters of contraction.

July 10, 2009

Singapore is the most trade-friendly economy in the world

Singapore is the most trade-conducive economy in the world, according to an influential report which put its long-time rival Hong Kong at second place. The World Economic Forum (WEF) pointed to Singapore's many advantages, including policy approaches, that have made it Number 1.

Its Global Enabling Trade Report cited the open market, highly efficient and transparent border administration, well-developed transport and communications infrastructure, and an open business environment.

“Customs procedures are assessed as the least burdensome in the world, and time and cost for both import and export are among the lowest for all countries covered,” the report said.

The WEF highlighted that the Singapore Government is highly transparent and efficient, while exporters face relatively low tariffs in target markets.

The WEF said Hong Kong's open domestic market mirrored Singapore's high dependence on exports and imports, but also noted that Hong Kong's exported products faced more barriers than Singapore's, as reflected in the tariffs it faced.

Barclays Capital economist Leong Wai Ho believes the differentiating factor for Singapore's success has been the numerous Free Trade Agreements (FTAs) it has signed. “We're the most trade-dependent economy in the world,” Mr Leong pointed out. “These FTAs have given us access to key trading partners and it's already showing up in the rankings.”

Minister Mentor of Singapore Lee Kuan Yew recently told Malaysian leaders that Singapore businessmen have thousands of projects in China, Vietnam, India and the Middle East, and that they are benefiting from the web of FTAs the country has signed.

The report, published for the second time and covering 121 economies, assesses institutions, policies and services that facilitate trade across national borders. The other economies in the top 10 are Switzerland, Denmark, Sweden, Canada, Norway, Finland, Austria and the Netherlands.

July 6, 2009

No magic wand

Straits Times, July 6, 2009
by Sue-Ann Chia

It needs 3 parties: New residents and S'poreans to bond, and Govt to provide framework.

On his visit to Punggol Central on Sunday, Mr Shanmugam encouraged both Singaporeans and new residents to mingle and get to know one another.
HOW to get new immigrants integrated into Singapore society? Law Minister K. Shanmugam, who is also Second Home Affairs Minister, said on Sunday the Government cannot be the 'total solution' to this.
Rather, the tricky problem takes three parties to solve - Singaporeans, who have to be welcoming; new immigrants, who have to adapt to a new culture; and the Government, which has to provide a framework for people to bond.
Mr Shanmugam stressed this three-way partnership at an hour-long dialogue with Punggol Central residents, in response to a question from a resident who wanted to know what can be done to integrate the growing pool of new immigrants here.
Last year, 20,513 foreigners became Singapore citizens, while 79,167 took up permanent residency.
It is the people themselves - Singaporeans and new residents - who have to mingle and forge friendships with one another, said Mr Shanmugam. Singaporeans, he said, should welcome 'newer residents with an open heart and help them integrate, bring them in'. This is already taking place in housing estates, he noted.
Mr Charles Chong, an MP for Pasir Ris-Punggol GRC, had last month estimated that up to 10 per cent of the residents in some blocks could be permanent residents or new citizens.
Noting how Singaporeans and new residents have come together to be involved in the programme for his ministerial visit, Mr Shanmugam added: 'That is a way integration takes place, at the ground level.'
As for new settlers, his advice was that they should 'take the attitude that they want to integrate'. He added: 'When we approve PRs, we look for people who can integrate, and can add value. We want to bring in people who will create more jobs...help the economy and all of us.'
The Government, on its part, will also find ways to help people interact, such as by setting up business organisations and social networks, he added.
The National Integration Council was set up earlier this year, headed by Dr Vivian Balakrishnan, the Minister for Community Development, Youth and Sports. Mr Shanmugam, who is part of the council, noted that there is no such thing as instant integration. 'You can't just wave a magic wand and say, 'okay, integration'. It takes many years,' he said.