Singapore yesterday sharply raised its growth forecast for this year to between 5.5 percent and 7.5 percent as the government pointed to a strengthening global economy and surging domestic business confidence.
The revised figures were a significant upgrade from the previous 3.5 percent to 5.5 percent estimate and came as the government said the city-state's economy expanded in the first three months of the year by 7.5 percent year-on-year.
The Trade and Industry Ministry said Singapore's economic recovery, following 1.1 percent growth last year, was mainly due to favorable external factors.
PHOTO: AFP
"The global economic recovery has continued to strengthen in recent months, supported by a low interest rate environment and expanding international trade and investments," the ministry said.
"The global economic outlook is expected to remain healthy."
The ministry highlighted the US as continuing to be a key driver of Singapore's growth, while also giving upbeat assessments of other key economies Japan and China.
Widely anticipated global interest rate hikes, led by the US, and record-high world oil prices are not expected to slow Singapore's economy, the government said.
"The increase in interest rates is expected to be measured and unlikely to derail the economic recovery," the ministry said.
"Even if oil prices remain at about US$40 per barrel, the International Energy Agency has estimated that growth in the developed economies would only be reduced by about half a percentage point."
Singapore's March quarter performance was better than the preliminary estimate of 7.3 percent, with the robust display buoyed by better exports and stronger consumer confidence at home.
External trade grew an annual 17 percent in the quarter to S$131 billion (US$77 billion), the fastest quarterly growth posted since the fourth quarter in 2000, the ministry said.
Domestic demand rose 16 percent in the first three months of the year, overturning a 1 percent decline in the previous quarter on higher private consumption and investment activity.
The manufacturing sector, a key engine of Singapore's export-led economy, grew 12.2 percent in the March quarter on the back of better electronics exports as well as pharmaceutical shipments to the world's major markets.
Government data released later yesterday showed Singapore's economic expansion had indeed continued past the March quarter, with the main non-oil domestic exports (NODX) sector growing 15.1 percent in April from a year ago.
Total trade in April grew 22.3 percent to S$46.97 billion (US$27.63 billion) while NODX was worth S$10.47 billion for the month, government trade body International Enterprise Singapore said.
"This robustness in growth was seen in all the key trade components," it said.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source