The Straits Times
Published on Oct 31, 2012

MAS warns of sluggish growth ahead for Singapore

But domestic economy will stay resilient, create jobs and lift wages


Singapore's central bank has warned of sluggish growth again next year even as the country grapples with elevated inflation.

The Monetary Authority of Singapore (MAS) said on Tuesday that the economy here could grow below its potential rate - defined as between 3 per cent and 5 per cent - next year, as the outlook for the global economy remains murky.

But the good news is that Singapore's domestic economy will stay resilient and help create jobs and lift wages, said MAS.

The domestic sector, covering areas such as construction, health care and education, accounted for 70 per cent of growth in the first half of this year, said MAS. The domestic economy represents about one-third of economic output in Singapore.