Singapore economic growth has taken a hit with the slowdown in the economies of its trading partners, the ASEAN countries
MAS reveals reasons behind Singapore’s slow economic growth
The recent slowdown in the economies of its trading partners has been the main cause
of Singapore’s slow economic growth. Despite sombre growth projection for next year, the trade
patterns that are emerging within the ASEAN countries point to greater growth possibilities for the
Asian country. Singapore’s Central Bank is pushing businesses to grab the opportunities that would
be presented before them as a consequence of the opening up of new business avenues. In
addition to the economic push by the bank, the release of the Macroeconomic Review October 2015
by the Monetary Authority of Singapore (MAS) sheds light on the world’s economic condition and its
effects on the country’s economy.
Apart from highlighting the intensification of “regional headwinds” in the report, MAS also makes
known through its review the growth projection for the country this year. "On balance, the Singapore
economy is expected to see growth of 2-2.5% in 2015, with risks tilted to the downside." MAS report
reveals. Moreover, the report says that even though Japan, Eurozone and United States may
provide stability to the market in the coming time period, the country cannot totally depend on the
US economy for its recovery.
Some of the regional challenges that the country faces stem mainly from the slowdown in the
economies of its trading partners – China, Malaysia and Indonesia. According to MAS, the total
imports into these countries have seen a contraction of about 16% since the beginning of 2015. The
slowdown in these countries have affected the country’s economy in the sense that together the trio
represents a third of the country’s total exports as well as tourism related demands.
Singapore’s other trading partners alongside Vietnam, the report says, are going to power
Singapore’s growth during the middle period. In addition to highlighting Laos, Vietnam, Myanmar
and Cambodia’s roles in powering the country’s exports, the MAS report also makes known the fact
that "Singapore also has to respond to the ongoing changes in global supply chains". The Monetary
Authority of Singapore calls for the strengthening of economic ties among the ASEAN countries to
encourage greater trade and development in Singapore. As a consequence, the country’s domestic
wholesalers and exporters would benefit considerably from this economic integration.
At the same time, according to MAS, it would herald abundant growth opportunities for not only
Singapore exporters but also exporters of the other ASEAN countries.
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