SINGAPORE, Dec 31 — Singapore avoided a recession in 2023 with a 1.2 per cent growth in gross domestic product (GDP), Prime Minister Lee Hsien Loong said today as he warned that the country must expect the external environment to be less favourable to its security and prosperity for “some years to come”.
In what is set to be his last New Year message as prime minister, Lee described 2023 as a “challenging year”, noting that the international environment remains “troubled” with underlying tensions between China and the United States, the Russia-Ukraine war and the Israel-Hamas conflict.
Contributing to Singapore’s GDP growth in 2023 is the country’s ability to live with Covid-19.
“We owe this to the tireless efforts of our healthcare and frontline workers, as well as everybody’s collective contributions towards keeping Singapore safe,” Lee said.
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He noted that the streets and neighbourhoods are again “bustling with life”, while tourists are returning.
“We made 1.2 per cent growth this year, avoiding a recession,” Lee said.
“But households are still feeling the pressure of higher cost of living, though inflation is gradually coming down. I hope the Government’s many assistance schemes have helped to relieve the burden on households.”
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The Ministry of Trade and Industry said last month that the Singapore economy was expected to grow by around 1 per cent in 2023, narrowing from a previous forecast range of 0.5 per cent to 1.5 per cent due to subdued external demand.
For 2024, GDP growth is projected to come in at 1 per cent to 3 per cent as major global economies are expected to pick up gradually in the second half of the year, the ministry added.
“For some years to come, we must expect the external environment to be less favourable to our security and prosperity,” Lee said.
“Geopolitical uncertainties will continue weighing on the global economy. In our own region, there are tensions and risks over rival claims in the South China Sea, and because of the cross-Strait situation. These can affect confidence in the region, and hence our growth.”
At the same time, climate change will pose major challenges for every country, Lee said.
He pledged that the Government will continue what it has set out to do this year. This includes continuing to upgrade the skillsets of Singaporean workers, providing affordable and accessible public housing and transforming its healthcare system.
Amid these uncertainties, the Forward Singapore agenda is “ambitious” but necessary to strengthen the country’s sense of shared identity and nationhood, said Lee.
He noted that many larger societies have become divided and weakened as “difficult issues were not tackled directly and effectively, rival interest groups jostled against one another, and leaders put their own interests above the nation’s”.
Singapore cannot afford to make the same mistakes, he said.
Leadership transitions ‘always delicate’
Lee said that Deputy Prime Minister Lawrence Wong will be taking over from him as Singapore’s prime minister next year.
While it is not Singapore’s first leadership transition, Lee pointed out that such transitions are “always delicate”.
“Singapore will come under close scrutiny. People near and far are watching to see how the new leaders bond with Singaporeans, and whether our small nation can remain successful and exceptional,” he said.
He urged Singaporeans to support Wong and the fourth-generation leaders to build Singapore into a nation that is “vibrant and inclusive, fair and competitive, and resilient and united”.
“This is how we have come through successive crises and done well, and this is how we must surmount future challenges which are bound to come,” he said.
Ending his speech, Lee called on Singaporeans to come together to fulfil their aspirations and secure a bright future for the country.
“Let us face 2024 invigorated and confident, as one united people,” he said.
“The future may be uncertain, but our path is clear.” — TODAY