IR boost to economy 'slower' this year

Contributions will be modest as both just starting operations: Lim Hng Kiang

SINGAPORE'S two integrated resorts (IRs) will boost the economy, but they are not likely to add as much to growth figures this year as they are only just opening their doors.

Giving an update on economic prospects for the year, Trade and Industry Minister Lim Hng Kiang said the two IRs are expected to contribute between 0.5 per cent and 1 per cent of Singapore's gross domestic product (GDP) when both are fully operational.

But he added: 'For this year, when they are only beginning operations, we can see the contribution to be slower.'

Mr Lim was responding to Madam Halimah Yacob (Jurong GRC), who had asked the question on the lips of many: What is the Government's latest assessment on how much the two IRs would contribute to economic growth?

In 2006, it was estimated that Marina Bay Sands and Resorts World Sentosa could together generate about $5.4 billion of value add - about 1.6 per cent of Singapore's GDP - by 2015.

But the global economic crisis had prompted some analysts to shave the contribution figure from both to as little as 0.3 per cent to 0.5 per cent of GDP from now till 2015.

Yesterday, Mr Lim told Parliament the Government will watch the figures closely.

However, he reiterated that the opening of the two IRs and new facilities in the biomedical and chemicals industries will help grow the economy, which is still fraught with uncertainty this year.

'The recovery in 2010...is expected to be uneven,' he said, adding that growth momentum is likely to slow down in the second half of the year as the effects of global fiscal stimulus measures wane.

But unlike some analysts who have predicted a double-dip recession this year, Mr Lim remains sanguine. 'The risk of a return to recession is low in the absence of further financial shocks,' he said.

Still, he noted that growth could be derailed if creeping trade protectionism becomes more prevalent, causing global trade flows to contract once again.

But such a likelihood is low due to peer pressure from global organisations such as the Asia-Pacific Economic Cooperation (Apec) forum, he said.

At the recently concluded Apec summit in Singapore, he said countries had re-affirmed their commitment to keep markets open and refrain from raising new barriers to investment or trade in goods and services.

Turning to Singapore's employment outlook, Mr Lim said the situation has stabilised, with the latest figures showing more jobs created and fewer layoffs.

'The unemployment rate, however, is likely to stay up for some time as it typically lags economic recovery,' he said.

But there are many jobs available for Singaporeans at all levels, he said, with vacancies in industries such as pharmaceuticals, clean energy, retail, food and beverage, hospitality, health care, aerospace, IT, finance and the IRs.

Source: Straits Times, 12 Jan 2010