Singapore can aim to grow economy by 3%-4%, maybe more, says DPM Gan

No matter how formidable the challenges are, Singapore should focus on the opportunities and try to grow its economy at a faster-than-expected clip, said Deputy Prime Minister Gan Kim Yong.

- Ovais Subhani Senior Business Correspondent

He said Singapore's economy over the decade is expected to grow at an annual rate of 2 per cent to 3 per cent - a pace comparable with many other small, advanced economies such as New Zealand, Sweden and Switzerland.

"But we should not take that as a given. Instead, we should aim higher," he said in Parliament on Sept 22.

DPM Gan, who is also Minister for Trade and Industry, said Singapore should take advantage of the window of opportunities over the next few years to achieve a faster rate of growth to make the economy stronger, before it settles down to the 2 per cent to 3 per cent long-term-trend rate.

However, he warned that boosting growth will not come easily, given the deteriorating global trade and economic environment and challenging domestic trends.

"The global developments we have seen over the past few months are not a passing storm; instead, they point towards a changed world - a new norm that is more fragmented, with sharper competition for investments, and a shift towards economic security and national interest.

"These call for a new economic blueprint to steer Singapore forward in this changed world."

Domestically, Singapore's workforce will grow as slowly as 1 per cent a year over the next decade, owing to an ageing workforce and falling birth rates. Productivity growth will be around 1 per cent to 2 per cent in the same period.