Are the IMF forecasts in line with what you observe in your industry within Singapore and globally? Does this change your expectations of growth within your own area of business?

YES, indeed. The Singapore economy does appear to be in for a good year. After more than a decade of decline, the construction industry seems to be picking up on the back of a recovery in the property market. Further, there are a number of major infrastructural and building projects like the integrated resort projects in the Marina area and Sentosa, and new shopping developments like in Orchard/Somerset roads, coming on stream. At the same time, the shipbuilding and ship repair industry continues to remain buoyant. All these developments mean that demand for steel products is likely to remain strong in the coming years.

The global economy is likely to remain positive given that the Chinese economy continues to be strong, although overheating remains a worry. However, the petrodollars flooding the Middle East are resulting in many huge infrastructural projects which will see strong demand for steel products. The main worry, however, appears to be the slowing US economy and how the Fed is dealing with inflation. If there is no bursting of the housing bubble in the US and the Fed is somehow able to handle the inflationary pressure, I believe the global economy, including Singapore's, is likely to remain positive in the coming years.

- Wee Piew
CEO,
HG Metal Manufacturing Ltd