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By May Wong, Channel NewsAsia

SINGAPORE: Minister Mentor Lee Kuan Yew believed Asia will not go into recession, citing not only strong growth in China and India, but also the strength of commodity prices boosting growth in Malaysia, Brunei and Indonesia.

Speaking to some 1,200 people at the Tanjong Pagar Lunar New Year dinner on Monday night, Mr Lee said Singapore is at the centre of the world's highest growth region, and is in a period of steady growth.

Mr Lee is also positive that Singapore can maximise its chances to reach a higher quality of development in the coming five to ten years.

"This is quite remarkable, for it will be the first time that when the American economy slows down and reduce imports from Asia, Asia will not go into recession. The reason is the dynamics of the domestic growth momentum in China and in India - two very huge countries. Furthermore, our neighbours are doing well. Singapore is in the centre of the world's highest growth region," he said.

While some may be lamenting the financial crisis, Mr Lee said he sees a blessing as property prices have cooled down for the time being.

He added that Singapore's Government of Singapore Investment Corporation (GIC) and Temasek have also been able to increase the value of their assets, especially during such downturns.

The two companies recently invested some S$22 billion into UBS, Citigroup and Merrill-Lynch.

"When the share prices of these banks recover (the) S$22 billion investments, it will be worth S$50 to S$70 billion. But never believe that assets will always go up. There will be downturns. And so we must have these reserves to see us through these troughs. Singapore has got to this level through hard work and thrift. We must continue in this mode," Mr Lee pointed out.

On the home front, Mr Lee said higher food and energy prices, and a widening income gap are cause for concern and must be addressed.

He also said that while there are massive investments, such as the Marina Barrage, to develop Singapore into a global city, those living in the heartland housing estates will not be left behind.

All estates will be upgraded and beautified to ensure all Singaporeans can benefit from the growth, Mr Lee added. - CNA/ac

Comments (7)

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written by Spear Bing, February 12, 2008 01:31:51

When these assets in UBS, Citigroup and Merill-Lynch go up in 2,3 0r 4years time as they will as a cycle of up and down, Singapore GIC would have made more than 100% of its investment!

Just wonder whether Malaysia Ministry of Finance company has sufficient reserves to take advantage of this downturn and make a prudent investment. Or have the reserves gone to buy more Russian jets and submarines?

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written by Rohani Hitam, February 12, 2008 03:23:59

Though I admit that I have some dislike on MM Lee, I continuously being amazed by his speaches. He has substance and the skill to turn events into his country's advantage. His expression is much valued and his thinking is much sought after. You cannot find a leader of his calibre in the present day. He is 15 years ahead of others and even more with Malaysia. Perhaps we could have somebody like him at one time but when cronyism and despotism set in, we lost that opportunity.

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written by yipck, February 12, 2008 03:24:55

Singapore, A developed country, still now pushing development beyond its current highly developed status.

A developed country is still in the process of developing and not stop or static.

Yet while Malaysia is swamp with dozen of problems and no where to be seen on the "Developing" into a "Developed" Country.

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written by krising1, February 12, 2008 06:15:10

In about 50 years after all the UMNOputeras have been castrated, we will be a developed state like Singapore. Right now there is no UMNOputera to match MM's ability and foresight to bring about such development. You cannot say such about a leadership that after 37 years of NEP has still hardcore poor amongst the Malays.

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written by lawa88, February 12, 2008 06:44:49

Singapore continues to grow.
What does Malaysia do? Shout about Ketuanan Melayu!
We are so many times better than Singapore in terms of resources etc etc etc you name it.
Guys time to vote BN OUT OUT OUT.

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written by TWOG, February 12, 2008 08:44:47

/// written by Rohani Hitam, February 12, 2008 | 03:23:59
Though I admit that I have some dislike on MM Lee, I continuously being amazed by his speaches. He has substance and the skill to turn events into his country's advantage. His expression is much valued and his thinking is much sought after. You cannot find a leader of his calibre in the present day. ///

Rohani, you seemed to admire MM Lee, yet you dislike him. You seemed almost like a schizod [not mad - just split personality ] Any reason why you dislike this man whom you think so highly of that you want someone like him for Malaysia? Could it be racial? Could it be blind patriotism and ugly nationalistic leanings?

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written by bumi non malay, February 12, 2008 19:55:10

ha ha ha ha....Malaysia Best answer to MM Lee was Tun Dr. Mahathir.....see the legacy of each ....enough said!!

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