Government To Announce Plans To Stimulate Economy

Prime Minister Lee said Singapore's economic growth next year could be negative, and to help cushion the slowing economy, Budget Statement 2009 will be brought forward to before the Lunar New Year which falls on January 26.

The government intends to announce plans to stimulate the economy, support jobs and strengthen competitiveness.

Mr Lee said the government is working out the best combination of measures for the coming Budget with the aim of not just helping Singaporeans with the present downturn but also to build up strength for the future.

He was speaking at the annual People's Action Party conference on Sunday.

Mr Lee, who is also the party's secretary-general, said the Singapore recession may last a year, but beyond that there may be several years of slow growth before things get back on track.

Prime Minister Lee noted that it is fortunate that inflation has moderated. He said that for several months, sharp increases in global food and energy prices had led to high inflation in Singapore.

Mr Lee has asked for an update from the Trade and Industry Ministry on the electricity tariffs here. "I asked MTI, they said yes - by January, electricity prices should come down, (and) if you are lucky, below where they were in October this year," he said.

Mr Lee cautioned that the Singapore economy will not do as well as the last few years. But he added that through government leadership and help, and the efforts of Singaporeans, he is confident the country will pull through the global downturn.

Source: Channel NewsAsia