SINGAPORE: Singapore's economy grew 4.8 per cent in 2011, significantly slower than the dramatic rebound of 14.7 per cent growth in 2010.
It is slightly below the forecast of around five per cent by the Ministry of Trade and Industry.
Prime Minister Lee Hsien Loong, who announced the growth figures in his 2012 New Year message on Saturday, described the pace of growth for the year as "steady".
He warned that with the external environment uncertain and debt problems in Europe far from solved, 2012 will look like a difficult year for the global economy.
He said that Singapore, as a small, open country, will inevitably be affected.
Mr Lee said 2011 was a significant year for Singapore, when its people went to the polls twice, and elected a new government and President.
He said that having made a significant political transition, the country and its people are now adjusting to new norms in a changed environment.
Mr Lee said that amidst this flux, Singapore needs to be confident of its position and clear about its priorities and plans to build a better country.
The prime minister said the government is working hard to tackle the immediate challenges.
It is committed to keeping homes affordable to all Singaporeans.
In 2011, it launched 25,000 Build-to-Order (BTO) flats, which enabled many first timers to book their HDB flats.
In 2012, it's launching another 25,000 BTO flats.
In the private property market, the new Additional Buyer's Stamp Duty will moderate capital inflows and foreign demand, and help to stabilise prices.
Mr Lee said the government will redouble efforts to improve the public transport system and expand the train and bus network.
It will identify and put right the causes of the recent Mass Rapid Transit (MRT) service disruptions.
The Circle Line, completed in October, now transports 300,000 commuters daily, and more MRT lines are on the way.
Mr Lee said the government will also continue to enhance bus services to improve the daily commuting experience.
But these improvements will take time, and he urged the commuting public to "bear with us".
Mr Lee said beyond these pressing concerns, the government is attending to long-term issues to improve Singaporeans' lives.
Healthcare, he said, must stay affordable and accessible to give Singaporeans peace of mind.
The government is enhancing the education system to give young Singaporeans the best possible start in life.
Mr Lee stressed the importance of upholding inclusive growth and social mobility as pillars of a united Singapore.
He said this calls both for upgrading skills and productivity to improve wages, and for strengthening social safety nets.
And given Singapore's low birth rate, the country needs to find workable solutions to keep society and the economy vibrant and forward-looking.
Mr Lee described population as a "particularly complex challenge" which involves unavoidable trade-offs.
He said these issues will be discussed in the coming year, so that Singaporeans understand better what is at stake, and the choices they must make as a nation.
Mr Lee said overall, there is every reason to be confident and optimistic.
He said Singaporeans pulled together as one nation to overcome the 2008 Global Financial Crisis and stressed that the country must never lose its strengths.
He expressed confidence that Singaporeans will continue to bond as one people and "walk shoulder to shoulder into a brighter tomorrow" in a changing world.
