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Singapore’s PM says economy not overheating, inflation under control

Singapore’s Prime Minister on Tuesday said his country’s economy was not overheating, with inflation under control despite firm economic growth.

Prime Minister Lee Hsien Loong also described the situation in Myanmar - where the government has violently suppressed pro-democracy protests - as „serious,” saying international powers needed to work on bringing together the two sides of the conflict - the ruling military and the opposition groups. „What is necessary is to find reconciliation and an agreement amongst the parties in Myanmar on the way forward,” Lee said after meeting with Hungarian counterpart Ferenc Gyurcsány.

„There’s no easy way forward „It is not simply a matter of regime change,” the Prime Minister added. „I think that if you look at Iraq, you know that regime change is a slogan but may not be a policy. Regarding his country’s economy, Lee said he did not believe it was „overheating. „This year we expect 7 to 8% growth. It’s a good figure but at the same time inflation is well under control,” Lee said.

He acknowledged that property prices had increased rapidly and that there were shortages in office rentals, which the government was trying to solve by, for example, building interim office space. „In the medium term we will have enough supply but in the short term there is a problem because so many businesses want to set up in Singapore,” Lee said after officials from the two countries signed cooperation agreements on economic, scientific and educational matters. (Press release: pr-inside)