MTI refutes calls to slow the pace of restructuring
It says economists are 'too hasty' in saying the policy is not working
Published on Aug 2, 2014 7:24 AM
The Ministry of Trade and Industry (MTI) has strongly refuted economists who have warned in recent weeks that the ongoing restructuring of Singapore's economy is not working and needs to be put on hold.
MTI said these economists were being "too hasty" in making this claim based on gross domestic product (GDP) growth figures from just one quarter - namely the second quarter - which came in worse than expected.
It also disagreed that the restructuring pace is too fast for businesses to adapt to. On the contrary, it said, the pace is "balanced" and restructuring is taking place in phases to give firms time to adapt. "We need to press on with restructuring at a steady, sustainable pace," it added.
In a four-page response to questions from The Straits Times, MTI said of the second quarter's growth figures, which have been a matter of concern: "Weak GDP growth in the second quarter of 2014 is not reflective of the impact of economic restructuring."
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