Singapore cuts growth forecast to 4%~5% for the 2008 GDP!

Singapore Prime Minister Lee said in his National Day message, that he has cut the 2008 GDP growth forecast to between 4 per cent and 5 per cent from an earlier estimate of between 4 per cent and 6 per cent.

Prime Minister Lee said the country faces a tough time in the year as it is beginning to feel the impact that affect by the US economy slowdown.

"For the whole year, Prime Minister Lee expect growth to be between 4 and 5 per cent," Prime Minister Lee said in his annual message, which was televised on the eve of Singapore’s 43rd birthday.

Prime Minister Lee said the Singapore economy had expanded by 4.5 per cent in the first six months of 2008.

"Singapore’s economy has so far been partly buffered, because singapore economy have been carried along by the vibrancy of the Asian region. But Asian economies are starting to feel the impact of America’s problems, and so are Singapore. Singapore must therefore prepare themselves for a bumpy year ahead," as Prime Minister Lee said.

Prime Minister Lee also acknowledged the problems Singaporeans are facing are due to global inflation. And while the government cannot prevent prices from going up as they are worldwide, it is trying to lighten the burden on Singaporeans through schemes like Workfare and ComCare.
"The government are doing the next best thing: to put in place effective relief measures, and provide the poor and the needy with the help they need. Singapore government must look beyond immediate problems like the cost of living, to understand what is happening in the world around us, discover new opportunities and tackle Singapore's longer term challenges," he said.
The annual message is seen as a prelude to the National Day Rally, where the Prime Minister goes into further detail on the long term challenges facing the country.

In the televised message on Friday, Prime Minister Lee highlighted three other points.
First, the upgrading of Singapore’s economy: to do so, there must be investment in its people. One way is through education. To that end, Singapore is building a fourth university which will take its first batch of students in 2011, well ahead of the original target of 2015. The publicly—funded university will have its campus in Changi.

The second point Prime Minister Lee highlighted was how to encourage Singaporeans to have more children to boost the country’s total fertility rate, which currently stands at only 1.29
Prime Minister Lee said: "The government can create an environment where Singaporeans see them (children) as a natural and important part of life, and where young couples get support in starting families. The government have looked at this comprehensively and will take further steps to address the practical problems which couples face."

Prime Minister Lee also spoke of adapting Singapore to be able to educate and engage what he called "cyber—citizens".

Prime Minister Lee said: "Singapore must adapt themselves to it, and use it to educate and engage their cyber—citizens. The government will evolve their policies and rules, Singapore economy and society, to take full advantage. The government will continue to open up their system progressively."

Prime Minister Lee hinted that the country will continue to open up space for political and societal debate, saying it is the "right way to go". But he also said that as the country continues to open up, its new generation of citizens need to understand that all freedoms come with responsibilities.

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Be prepare for the tough time to come, the impact I believe will last for two to three year down the road. there is an example to see is Japan's property bubble in 90s.

we in the world of globalisation, the impact of US economy slowdown will spread around the world.

Just hope that the credit crunch crisis will over soon and the economy will have a bull run again.

There is news list for reviewing:-

Italy economy contracts, bringing recession close.
http://www.channelnewsasia.com/stories/afp_world_business/view/366035/1/.html

OECD sees growth easing in top economies.
http://www.channelnewsasia.com/stories/afp_world_business/view/365915/1/.html

Japan's longest post-war economic recovery over.
"It is possible that the economy may already be in a recession,"
http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/365596/1/.html

Singapore banks sound warning after mixed results.
http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/365581/1/.html

Barclays says net profit slides 35% in first half. (Barclays is the 18th largest company in the world according to Forbes.)
http://www.channelnewsasia.com/stories/afp_world_business/view/365498/1/.html

AXA reports 32% profit slump on sub-prime damage. (The 15th largest company in the world by Fortune.)
http://www.channelnewsasia.com/stories/afp_world_business/view/365534/1/.html

Freddie Mac's rising losses bode ill for US housing crisis.
http://www.channelnewsasia.com/stories/afp_world_business/view/365456/1/.html

BNP Paribas second quarter profits down 34%
http://www.channelnewsasia.com/stories/afp_world_business/view/365221/1/.html

Societe Generale reports quarterly profit slump, but shares rally.
http://www.channelnewsasia.com/stories/afp_world_business/view/365008/1/.html

Greenspan warns US governments may have to bail out more banks.
http://www.channelnewsasia.com/stories/afp_world_business/view/364947/1/.html

Analysts say Asian economies yet to feel real impact of US subprime crisis.
http://www.channelnewsasia.com/stories/economicnews/view/364863/1/.html