Even within the electronics sector, which has been hit hard by the slowdown in global export demand, 'all industry players believe that beyond the downturn, there'll be a recovery and there'll be growth again'.

Firms must be ready for that with measures including retaining and upgrading their staff, said Mr Iswaran. He spoke at the official opening of semiconductor maker Marvell's new building, where he was guest of honour.

Marvell, a California, United States-based firm that started operations in Singapore 11 years ago, is one company that is already making plans for the post-downturn rebound.

'The key thing is to continue to invest in the future,' said president and chief executive officer Sehat Sutardja yesterday.

This is so that 'when the downturn is over, we'll continue to have the best products that our customers need', he said.

Marvell invested $54 million in the land and construction of its new building in Tai Seng Link, the firm said yesterday. The building houses about 250 employees, half of whom are Singaporeans and the other half, permanent residents.

Mr Iswaran also said on Thrusday that Singapore 'continues to have a strong pipeline' of foreign investments, even though potential investors 'would obviously be reviewing their plans' in the light of the expected worldwide recession.

When asked whether any investor is thinking of pulling out of a previously made commitment, Mr Iswaran said: 'It's hard for me to second-guess companies...we have to wait and see what the outcome will be.'

He also said it was too early to say if the Economic Development Board is on track to meet its target for pulling in investments this year, and said he could not comment on whether the agency would lower its investments target for next year.