The Singapore Ministry of Trade and Industry (MTI) have issued a press release on Tuesday that the gross domestic product (GDP) grew by 18.8 per cent from last year, stronger than the 16.9 per cent growth in the first quarter.

However, as manufacturing growth slowed down in June, the economical growth also reflected less than the earlier forecaster figure in the second quarter of this year. The final Q2 GDP figure is less than the earlier prediction of 19.3 per cent. GDP grew by 24 per cent on a seasonally adjusted quarter-on-quarter annualized basis for the second quarter after a climbing figure of 45.7 per cent in the previous quarter.  MTI gave lower figure than it is earlier estimate of 26 per cent.  Compared to the same period last year, manufacturing production from biomedical and electronics clusters lead to an industry growth of 44.5 per cent in the first three months through June, but the number did not reach the preliminary estimate of 45.5 per cent.

The biomedical manufacturing and electronics clusters upped their production of higher value active pharmaceutical ingredients and semiconductor chips. An increase of public sector construction activities saw the construction sector expanded by 11.5 per cent while the services industry grew to a revised 11.2 percent in Q2 from the same period last year.

Riding on strong global trade flows, the wholesale and retail trade sector increased by 18.9 per cent while the financial services sector expanded 10.2 per cent from an increase of foreign exchange trading activities, and domestic bank lending.

Swimming in waves of high visitor arrivals and activities in the newly opened Integrated Resorts, both hotels and restaurant sector and other services experienced double-digit growth rates of 10.4 per cent and 12.9 per cent respectively.

Rikvin Consultancy director James Nuben said that MTI figures are reflective of the number foreigners incorporating a Singapore company. “Most inquiries to incorporate a Singapore company come from the main industries of manufacturing, financial services and the service industry,” said Mr. Nuben.

“The completion of the IRs attracted many international companies to set up Singapore branch offices or Singapore subsidiary companies, while foreigners are eager to set up a Singapore business to flow with the strong economy.”

Compared to 2.8 per cent in the earlier quarter, MTI said that real GDP grew by 17.9 per cent in the first half of the year.  MTI said for the second half of the year the global economy is expected to remain on modest recovery path, “albeit one that will continue to ease for the rest of the year.”

“For the Singapore economy, the strong growth momentum in the first half of 2010 is not likely to continue into the second half of the year, although growth rates will remain healthy,” said MTI.

“Anticipated plant maintenance shutdowns in the biomedical manufacturing cluster will also drag down overall growth.”

MTI says the economic growth forecast for 2010 stays at 13 to 15 per cent. Mr. Nuben believes that even though the growth appears to move slower than the first quarter, it is still substantial.

“We get many calls asking about Singapore company incorporation and employment pass application every day. It shows that people know that Singapore has great potential to grow even more.”

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