The Ministry of Trade and Industry (MTI), after the first quarter economic review has reported that the Singapore economy expanded by 15.5 per cent on a year-on-year basis in the first quarter of 2010. The Ministry has also declared that it will maintain the GDP growth forecast for 2010 at 7.0 to 9.0 per cent. The overall economic growth has also positively impacted the employment rates with more companies starting to hire in the first quarter.
The bulk of the growth was reported from the manufacturing sector which expanded by 32.9 per cent on a year-on-year basis. This was followed by the construction sector and service sector which expanded by 13.7 per cent and 10.9 per cent respectively. The Construction sector will be invigorated by the recent announcement to raise its productivity - a S$250-million fund which will allow builders to apply for as much as 80% funding for workforce training, technology adoption and scholarships.
Broad based economic recovery in the US, growing economies of Asia and a sustained intra regional trade have all contributed to the incredible growth. The record high increase in tourist arrivals has also been an important driver of growth. Some analyst even opine that the government's 7-9 per cent growth forecast is conservative and suggests that the Asian demand will keep the growth buoyant and even lend a double digit growth rate.
The strong rebound of the economy is spurring many enterprises and entrepreneurs to capitalize on the growth momentum. This is testified by the surge in enquiries to Singapore company formation agencies such as Janus Corporate Solutions. Ms. Jacqueline Low, the director of the agency says "though the recent developments in Europe is raising doubts about the maintenance of the momentum, overall there is a strong optimism and confidence that is prevailing here.
Experts and entrepreneurs are confident that the regional demand will grow remarkably keeping the economic scene more vibrant, off late we are witnessing a steep increase in enquiries regarding company incorporation services from potential clients from diverse regions and industries. Our existing clients are also quite upbeat about the prospects of their companies."
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