SINGAPORE - Domestic firms in the modern services sector will play a key role in supporting growth this year, the Monetary Authority of Singapore (MAS) said on Friday.
"Demand for information and communications services is expected to be firm, with the government's 'Smart Nation' initiative, which includes procurement of a wide range of IT services and infrastructure, providing the boost," MAS said in its quarterly report on recent economic developments in Singapore.
"Meanwhile, the life insurance industry should continue to register healthy gains, given Singapore's relatively lower life insurance penetration rate as compared to other advanced Asian economies."
Other domestic-oriented sectors will also benefit from increased government expenditure in healthcare, education, social services and transport infrastructure, MAS said.
The domestic economy is expected to grow at a modest pace in 2016, said MAS, noting that the Government's forecast is for GDP (gross domestic product) to grow between 1 and 3 per cent in 2016.