SINGAPORE - The initial signs are positive that Singapore’s economy will do better in the Year of the Dragon despite some uncertainties in the external environment, said Prime Minister Lee Hsien Loong on Feb 9.

Sectors such as construction, retail, and food and beverage are looking up, with many construction projects in the pipeline, as well as more flights and visa-free travel between Singapore and China, he said.

Striking a cautiously optimistic note as he spoke to reporters at the sidelines of a visit to Ng Teng Fong General Hospital, PM Lee said the economy should be able to rebound.

“Growth was not quite as high as we would have liked, but it has been a steady year and we avoided a recession. Next year, meaning 2024, we hope will be stronger than 2023,” he said.

The economy grew 1.2 per cent overall in 2023, with growth in the fourth quarter coming in at 2.8 per cent, a sharp increase from the 1.1 per cent in the third quarter.

Overall growth for 2024 is projected to be between 1 per cent and 3 per cent.

Much also hinges on how uncertainties in the external environment will play out, said PM Lee.

The ongoing wars and conflicts around the world could affect the economy. Whether the United States manages to cool down inflation and avoid a recession, and whether the Chinese economy and its electronics industry revive strongly or not would also have a bearing.

“We are not sure exactly how it will turn out... But as of now, from what we can tell, it looks like this year ought to be stronger than last year,” he said. “And from the point of view of Singaporeans, of companies and, of course, of the Government, we should be happy with that.”

PM Lee was asked about inflation and the higher cost of living.

He said inflation had come down in 2023 from its peak in 2022, and is now at about 4 per cent to 5 per cent. He added that he hoped it would continue to fall in 2024.

Acknowledging that people are still dealing with the impact of price increases, he said the Government had introduced many measures such as Community Development Council vouchers, U-Save rebates, and MediSave top-ups to help Singaporeans cope, and will continue to do so.

He added that the Government has been watching the cost of living and will continue to deal with it and manage it.

In his Chinese New Year message published on Feb 9, PM Lee urged Singaporeans to try for babies, pledging that the Government will support their marriage and parenthood aspirations.

Asked about this, he said the Government had done quite a lot over the last few years in terms of pre-schools, flexible work arrangements, baby bonuses, maternity leave, paternity leave and family leave, and has “some ideas to do more on all these counts”.

“I think DPM Lawrence and his team have been working hard at it. We’ve discussed some of his ideas – I think I should leave him to announce good news,” he said.

PM Lee was speaking to reporters after visiting healthcare workers at Ng Teng Fong General Hospital, where he heard presentations about its new projects and also celebrated Chinese New Year with its staff.

He was accompanied by Mrs Lee, as well as NTUC secretary-general Ng Chee Meng and other labour movement leaders.

PM Lee said this year should be his last Chinese New Year visit to workers as prime minister. He has said he will hand over to Deputy Prime Minister Lawrence Wong by November 2024 “if all goes well”.

Asked about his feelings, he said he had been on such visits regularly even before becoming prime minister, and has always looked forward to meeting workers to thank them during the festive period.

He said healthcare workers carried a heavy load during the Covid-19 pandemic, and continue to do so amid an ageing population.

Nurse Kennis Koh, 25, was excited to meet PM Lee. She has worked through every single Chinese New Year, save for one day off each time, since she started on her job three years ago.

While she grew wistful talking about missing reunion meals with her family, she said: “Our work has to be done, so we just do it.”

She added that although her family members sometimes wish she could eat with them, they are also proud of her work in the intensive care unit, saving lives and taking care of patients.

Paying tribute to healthcare workers, PM Lee thanked them for their hard work and for maintaining a high standard of healthcare in Singapore.