As sponsorship dries up amid the global financial crisis the amount of money earmarked for the event has been cut by 20 per cent, said Philip Loh, vice-chairman and head of publicity for the organising committee.

'Many (sponsors) have cut down (funding) or are not participating,' he said.

The cut of $425,000 to $1.7 million means visitors will be treated to fewer fire crackers, while the fireworks display will last three minutes instead of five, said Mr Loh.

Singapore, which is in a recession, is a majority ethnic Chinese city-state whose Chinatown district is the focus of Lunar New Year celebrations on January 26-27. -- AFP