Singapore's economy must expand at least 3 percent in the first and second quarters if it is to meet the official target of 3 percent to 5 percent this year, Deputy Prime Minister Tony Tan said in remarks published yesterday.
"We need at least two more quarters of solid growth, first and second quarters in 2004, to ensure that we are completely out of the woods," he was quoted as saying in the Straits Times.
Speaking to local reporters at a community event on Sunday, Tan warned of unforeseen risks that could derail the city-state, whose economic wealth is largely derived from foreign trade.
Tan, who is one of Singapore's two deputy premiers, cited the SARS health scourge as one that caught the region, including the city state, off guard and inflicted heavy damage last year.
"We live in an unpredictable world," he said, adding problems could come from "the most unexpected places."
Singapore's economy was severely affected by SARS in the first-half of last year but managed to rebound in the final six months as GDP expanded an annual 0.8 percent. The official growth target for this year is 3 percent-5 percent, although private sector economists expect an even better performance.
Tan also reiterated there would be no let-up in the government's drive to restructure the economy and create new growth sectors in the face of intense competition from neighboring countries.
"It's not only the Kuala Lumpur airport or Bangkok airport which are competing with Singapore to be air hubs," he said.
"Our neighboring countries are also competing with us even in areas where we are trying to develop. Like health services."
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