Are we entering a period of heightened risk aversion by investors? Couldthis, coupled with other risks, have serious economic consequences, including for Singapore?

I THINK the stock markets, having rallied for quite some time, were overdue for a correction. However, I do not think economic fundamentals globally as well as in Singapore have changed significantly between prior to the recent stock market crash and now. Externally, the risks of overheating in China and the possibility of a US economic slowdown later this year have been around for quite some time. Hopefully, with oil prices appearing to be stabilising, both the Chinese and US governments would be able to take actions to avert these risks.

On the other hand, Singapore is on course in re-inventing itself. I think the next few years will be exciting times for Singapore as it becomes an international hub for Asia. Sentosa is fast becoming the playground for the rich and famous in Asia. At the same time, many regional private banking centres have been set up in Singapore to cater to these rich individuals. Also, the IR projects have only just started, while the property market is coming up. The local population is likely to increase with more immigration, which is likely to boost domestic demand. While there might be some hiccups along the way, this is inevitable as Singapore is plugged into the global community.

- Wee Piew
CEO, HG Metal Manufacturing Ltd