Singapore's economy to grow and do better over next few years: PM Lee
By Farah Abdul Rahim, Channel NewsAsia | Posted: 20 August 2006 2020 hrs

SINGAPORE: Singapore's economy will continue to grow and do even better over the next few years.

That's the optimistic outlook from Prime Minister Lee Hsien Loong in his National Day Rally speech.

The sustainable long-term growth is estimated to be between 3% and 5%, thanks to major investments like the integrated resorts and projects from the manufacturing sector.

"We have what it takes to succeed, we have a good economic team and our strategies are working," Mr Lee said.

The Prime Minister outlined the good news for the economy, backing it up with examples of big project investments that have been brought into Singapore.

These include the upcoming Marina Sands Integrated Resort and another one in Sentosa, and Shell's new petroleum complex spanning Bukom and Jurong Islands as well as major wafer fabrication investments.

"Why are they here? It's not because we have low wages, it's not because we are competing at the bottom, but we are the best place for high-quality investments; Confidence that the whole system works and if you plonk investments here of a few billion dollars, it will be safe, profitable, people will work and there will be results. Therefore, more projects will come and more jobs and more growth will be created," PM Lee said in his third National Day Rally speech on Sunday.

The government is also tapping on research and development to grow new capabilities in three areas - environmental and water technologies, interactive and digital media and biomedical science.

Mr Lee added that Singapore has the potential to do well in biomedical science as it has a strong base in the sector.

More support will be given for clinical research into patient treatment and applications so that doctors can treat patients better, he said.

Singapore companies were also lauded - not just large companies but also small and medium sized enterprises which are spreading their wings overseas and doing well.

At the same time, as the economy grows, a wide range of jobs are being created for all Singaporeans in the tourism, services and manufacturing industries.

Semi-skilled workers and graduates alike are benefiting from this.

More older and lower-skilled workers are also getting jobs.

But, Mr Lee said, retraining efforts should not slacken, even as more older workers are being hired. - CNA/ir