But this openness will mean a quicker rebound when a global recovery kicks in, Monetary Authority of Singapore's deputy managing director Ong Chong Tee told a business seminar on Wednesday.

Despite diversifying its economy, Singapore's reliance on exports has in fact increased - rising from 70 per cent of total demand in 1998 to 76 per cent last year.

This openness and trade-dependency makes the economy 'more susceptible to global headwinds,' said Mr Ong, speaking at a conference organised by the now merged Bank of America-Merrill Lynch.

Countries accounting for 57 per cent of Singapore's exports are projected to be in a full-year recession this year, compared to 50 per cent in 1998 and just 5 per cent in 2001 - Singapore?s most recent periods of recession.

But echoing the sentiments of government leaders, Mr Ong said that 'the same openness of the Singapore economy should also enable us to pick up more strongly than other countries when the global recovery eventually gets underway'.

Amid a global sychronised slowdown, Singapore suffered its worst ever quarter of growth this year, with economic output slumping 11.5 per cent in the first quarter, compared to a year earlier.

The economy is expected to shrink between 6 and 9 per cent for the full year. But signs are now suggesting that the worst of the economic storm has passed.