The outlook for 2006 is quite robust as we are looking for the growth momentum to be maintained. The main reason for the higher fourth-quarter numbers was the manufacturing sector.
The strength of electronics output and exports were one of the pillars supporting the Singapore economy in the first quarter. Services grew strongly as well and that will help the Singapore government achieve its growth forecast this year.
The two central banks are likely to hold interest rates this time, especially Korea, because large flows are coming in which is putting appreciation pressure on currencies.
The main concern on electronics was disk drives... This was very significant.
