12th Feb 2008
SINGAPORE -- Asia will not tip into recession even though the United States economy is faltering, Singapore's founding father Lee Kuan Yew was quoted as saying on Tuesday.
"This is quite remarkable for it will be the first time that when the American economy slows down and reduces imports from Asia, Asia will not go into recession," The Straits Times quoted Lee as telling a Chinese New Year dinner.
Lee pointed to growth in China and India, as well as in Indonesia, Malaysia and Vietnam, newspapers quoted him as saying.
"Singapore is in the center of the world's highest growth region," he said at the dinner, according to the Today newspaper.
Some economists say a US recession has already started. A US housing slump, led by rising mortgage defaults among subprime or high-risk customers, triggered a credit crunch that has wreaked havoc on world markets in recent months.
The government has forecast 4.5-6.5 percent growth for Singapore this year, after 7.5 percent last year.
Lee said that aside from the strength that comes from being in the middle of a dynamic region, Singapore will also benefit from massive investments underway on casino developments, subway lines and other projects in the city-state.
Lee holds the cabinet position of Minister Mentor in the government of his son, Prime Minister Lee Hsien Loong.
http://business.inquirer.net/money/breakingnews/view/20080212-118393/Asia-will-not-tip-into-recession-Singapores-Lee-says