More warnings from The Mighty Leadership...
http://straitstimes.asia1.com.sg/sto...27847,00.html?
JAN 1, 2004
Economy grows by 0.8 per cent
The last quarter's 3.7% growth lifts the full-year figure for a difficult year. Harmony on labour front crucial, says PM
By Tan Tarn How
SINGAPORE'S economy grew by 0.8 per cent in 2003, within the 0.5 to 1 per cent range forecast by the Government.
Prime Minister Goh Chok Tong, who revealed the figure in his traditional New Year message to the nation yesterday, also said that the economy expanded by 3.7 per cent in the last quarter.
'The Singapore economy has started to turn around.'
Hence, he added, this year the economy should grow by 3 to 5 per cent as earlier estimated.
Looking back on 2003, he described it as 'a difficult year that will linger in our national memory' as terrorism, Sars and the Iraq war took a toll on the economy, and choked off hopes of an early recovery.
'Fortunately, the sky is brightening,' he said.
The United States, Japan and Europe are growing or starting to grow, and trade with China will increase.
The global electronics industry, an important driver of the economy, is expected to expand robustly this year. Mr Goh revealed that last year, Singapore drew in $7.5 billion of fixed asset investment commitments in manufacturing, and investments in the services sector worth $1.9 billion in annual total business spending.
These investments and other projects will create thousands of new jobs: 'They signal firm confidence in Singapore's future.'
The turnaround requires not just a favourable external environment, but also a positive domestic response, he said, adding: 'Here, we have shown group solidarity to advance our collective interests.'
More challenges and changes will arise, and Singaporeans must keep adapting.
Harmonious industrial relations in which the Government, employers and workers trust one another will be vital in meeting the challenges, he said. A strong tripartite relationship is Singapore's 'unique competitive edge, which we must do all to strengthen'.
On this issue, he singled out Singapore Airlines and the pilots' union, which is due to negotiate a new collective agreement.
'Take SIA. SIA is a metaphor for Singapore: its success, strengths, vulnerabilities and challenges mirror those of Singapore,' he said.
The carrier faced formidable challenges, from low-cost carriers to longer-range aircraft and new airports in the region.
Overcoming them will require all - from pilots to engineers, ground crew and management - to pull together. 'If pilots refuse to fly, the airline will be grounded,' he said, adding that if the crew, engineers and management also did not cooperate, SIA would flounder.
'No group of employees in Singapore should act without regard for the impact on others, or hold the company and fellow workers hostage to their narrow self-interests.
'This is especially so of skilled workers like pilots, who have benefited from heavy investments in training, and thus occupy well-paid positions in their company.'
Mr Goh concluded by saying that 2003 showed that in an unpredictable and volatile world, 'we have to stick together' to overcome uncertainties.
A younger generation of Singaporeans has shown its fighting spirit, he added. 'That is why I am upbeat about our future.'
Commenting on the growth numbers, IDEAglobal senior regional economist Nizam Idris said the growth forecast for this year is conservative, with many analysts expecting it to be at the upper end of the 3 to 5 per cent range or even exceed it.