SINGAPORE - Some parts of Singapore's economy such as the manufacturers and exports will benefit from the continued improvement in global demand, the Monetary Authority of Singapore (MAS) noted in its monetary policy statement on Tuesday morning.
But some manufacturers here are facing constraints such as manpower shortages as well as falling prices for their products. MAS warned that these manufacturers may reconfigure their operations in Singapore. This could hit output.
MAS also noted that the global economy is likely to continue to expand, but at an uneven pace across countries. The recovery will be lead by the US economy.
But growth in the core Eurozone economies and Japan is likely to remain weak. In Asia, the ASEAN economies are likely to benefit from the US recovery. Growth in China is set to continue on its moderating path.
In Singapore, the healthcare and education sectors will stay resilient on the back of strong underlying demand. Other service industries that rely heavily on labour and face greater competition could see their profit margins being hit.
Singapore's economy is projected to grow by 2.5-3.5 per cent this year. It should maintain a broadly similar pace of expansion next year, MAS said.