Singapore's 2009 economic growth could drop lower than 3 per cent

Oct 19, 2008, 2:21 GMT

Singapore - Singapore's 2009 economic growth could be slower than the estimated 3 per cent originally expected this year, cautioned the city state's former Prime Minister Goh Chok Tong.

Goh, now ranked senior minister in the government, was quick to assure that the government was looking at how to help Singaporeans overcome temporary economic hardship next year.

'The government is already thinking about what it can do to help businesses and ordinary Singaporeans - in particular lower income Singaporeans - next year,' the Channel News Asia quoted Goh as saying on Saturday.

Goh expressed his confidence in the island's current diversified economy and strong economic fundamentals, hoping the economy would bounce back if Singaporeans stick together.

He also reassured Singaporeans on the government-initiated efforts to help those hit by the mini-bond investments related to the failed Lehman Brothers.

Goh said the central bank had been reassured that the banks and financial institutions would be helpful. In the case of doubt, he said, officials would try to settle in favour of the investor.

Gosh said the Monetary Authority of Singapore (MAS) had been quietly working with the banks and financial institutions to find a fair solution for people who have invested in the structured products of Lehman Brothers.