RHB | Singapore | Restructuring For Better Long-term Economic Prospects

Economic Research	03 October 2014
Singapore
Economic Outlook
Restructuring For Better Long-term Economic Prospects Singapore is going through some structural adjustment to enhance its economy competitiveness via a reduction on reliance on foreign labour. We are of the view that Singapore’s economy will likely continue growing at a more moderate pace of 3.1% y-o-y in 2H 2014, compared with +3.6% in the 1H due to a smaller net export but mitigates by stronger domestic demand. This suggests the economy will likely expand at a slower pace of 3.3% in 2014, compared with +3.9% in 2013. However, we believe the economy will likely bounce back along with a global economic recovery and the real GDP growth will likely pick up to 4.4% in 2015. Economist:  :  Luthfi Ridho  | +6221 2598 6888