Prime Minister Lee Hsien Loong said on Sunday the Government will announce 'this week' a loan scheme for businesses, and new training programme for workers.

In addition, there will be additional measures in the annual Budget statement, which is normally in February but will be brought forward to January.

'We don't want to wait,' said Mr Lee.

He said the recession will probably last a year, but expect several years of slow growth before the economy returns to normal.

Growth next year could be negative, he cautioned, and there could be 'more surprises'.

His sobering message was delivered to 1,000 People's Action Party cadres at its annual party conference held at the Toa Payoh sports hub.

Despite the cloudy outlook, Mr Lee said Singapore is in a strong position, thanks to projects already in the pipeline which would create thousands of jobs.

In addition, because of its huge reserves, Singaporeans need not worry about their CPF savings.

'Nobody is thinking of testing the Singapore dollar...that keeps our economy stable and therefore your savings are safe,' he said.

Inflation has also moderated, and electricity prices look set to come down in January, he added.

Besides help measures, PM Lee also emphasised the importance of good political leadership.

'We cannot sail through this storm on autopilot. The Government has to lead...implement the policies which are needed, mobilise Singaporeans and mount a national response to get us through,' he said.

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