The economy grew a revised 9.9 per cent last year, down from a preliminary estimate of 10.1 per cent, but the outlook for this year remains bright, the government believes.
The Ministry of Trade and Industry, in its annual economic survey, said that despite the twin blows of slower United States growth and a dip in the electronics trade it was sticking with a gross domestic product growth target of 5 per cent to 7 per cent for this year.
The survey was accompanied by a policy update from the Monetary Authority of Singapore (MAS), which said it was retaining its tightening bias to try to hold inflation below 2 per cent this year.
Some economists had predicted a switch to a neutral or looser stance.
Khor Hoe Ee, senior executive director at MAS, said the de facto central bank was also adopting a more transparent approach to its workings and would brief the markets more fully on the thinking behind its decisions.
The announcements came ahead of today's annual budget. Finance Minister Richard Hu Tsu Tau is expected to deliver a pro-business package of measures and try to boost personal income in what may be an election year.
Mr Hu's leeway for loosening the purse strings was underlined by figures released yesterday that showed the government's operating revenue surged 17 per cent last year to S$33.5 billion (about HK$149.7 billion).
