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Challenges ahead for businesses as US economy stumbles
Joyce Teo Sat, Feb 09, 2008 The Straits Times
AN ECONOMIC slowdown in the United States - expected to weigh on Singapore's economic growth - lent a slightly sombre tone to the otherwise cheery Chinese New Year celebrations at the Singapore Chinese Chamber of Commerce and Industry (SCCCI) on Thursday. 'Whatever we do, and however optimistic we are, we cannot be exceptionally sure of the future,' said the guest of honour, Minister for Foreign Affairs George Yeo. 'You don't fear what you know. You fear what you don't know.' Conditions around Asia are favourable, but no one quite knows how bad the US crisis is, he said. 'One way or another, it will affect us,' said Mr Yeo during the chamber's annual gathering on the first day of the Chinese New Year.

Singapore's economic growth will slow, but the medium- to long-term view of the economy remains favourable, said Mr Yeo.

Mr Chua Thian Poh, president of SCCCI, also spoke about the effects of the US sub-prime crisis being felt around the world, which caused Asian financial markets to go into a tailspin in mid-January.

'While we look forward to another good year of economic growth, we must be keenly aware that 2008 will bring its fair share of challenges to the business community,' he said.

Soaring energy prices, coupled with unusually bad weather conditions in some countries, are all external factors causing patches of uncertainty in the new year, he added.

Mr Chua was speaking to more than 500 officials and business leaders at SCCCI's annual gathering.

The group launched a fund-raising drive to help those in China affected by severe snowstorms and managed to initially raise $75,000 on Thursday.

The drive ends on April 15.

Mr Chua, chairman of property developer Ho Bee Investment, told reporters at the event's sidelines that Singapore's property market would be affected in the short-term, but that it looked good in the medium- to long-term.

The mood is cautious, and the market may be quiet for a few months, he said.

He added that the mid- to mass market sectors would still do well and that, overall, prices would still be maintained.

With the Budget coming up in about a week, Mr Chua said in his speech that the SCCCI hopes that its members' concerns on rising costs will be taken into consideration, and that they are looking forward to a pro-business and pro-people Budget.

Inflation, because of high fuel and food prices, is a concern among Singaporeans, said Mr Yeo. He expressed hopes that businesses and the better-off could spare a thought for the less well-off.

'If there is no need to increase prices, it is good to spare a thought for ordinary Singaporeans,' said Mr Yeo.

'Let us this year be vigilant about external conditions and also be vigilant in looking out for those who face difficulties and extend them a helping hand.'

joyceteo@sph.com.sg