DBS Group Holdings chief executive Piyush Gupta remains optimistic about 2013, but added that Singapore's growth could come in at the lower end of the official forecast of 1 to 3 per cent.

He explained that the government faces the dilemmas of managing growth versus inflation and growth versus social stability.

Mr Gupta added that the government has sent a clear message that it will forego growth as part of the trade-off.

He was speaking at a client event for DBS Private Bank at the Ritz Carlton Millenia.