Is Singapore’s rapid economic growth likely to be sustained, or is it temporary? From your own business perspective, what are its implications – both positive and negative?

John Brells
Senior Vice-President & Managing Director
Hill International

SINGAPORE’S 18.1 per cent growth in the first half of 2010 – the fastest in the world – is remarkable and welcome news coming from the dark days of the financial crisis. It is reassuring that the construction sector remained one of the strongest economic drivers, growing by as much as 13.5 per cent.

Considering the city-state’s solid economic fundamentals, we expect this recovery to be sustainable over the next 3-5 years. As businesses capitalise on better market conditions, we look forward to another boom for the building and construction industry, although not immediately. In the interim, we expect also the completion of projects deferred during the downturn and groundbreaking for new builds.

On the flipside, there is a need to manage costs. Greater spending typically follows an economic surge so on a macro level, inflation rates must be kept in check. Businesses are better off remaining cautious in terms of their fiscal decisions until these impressive growth figures manifest tangible returns.