JANUARY 2013 : Opening Message for 2013

" At the start of 2012, we were expecting significant challenges and uncertainties. At the close of 2012, we are in a situation where USA is trying to avert the "Fiscal Cliff" as it makes a final push in the stalled negotiations. Europe is still suffering from a spiralling sovereign debt which requires budgets to be restrained and belts to be tightened. The EU and the Eurozone will remain focused on holding together the budget deficit and will take some time to shift their focus to growth strategies. Even China, while managing a soft landing, is projected to grow at a slower though more sustainable 7 to 8% over the medium term, unlike the double digit growth of the last comparable levels as 2010.two decades.

At the same time, some significant uncertainties were resolved in 2012; such as the re-election of Mr. Barack Obama in the US and the smooth transition of China's leadership to Mr. Xi Jinping.

Closer to home, Singapore's GDP is officially forecasted to grow at 1.2% in 2012, and between 1-3% in 2013, relatively low forecasts as compared to the last 2 years. Singapore will continue to be vulnerable to external influence as it is a small open economy. The economic crisis is no longer a threat; it has become an integral part of our daily lives.

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