Singapore's Prime Minister Lee Hsien long praised on December 31, 2004 the role China has played in helping develop regional economy, saying that China will still be a strong economic growth engine for the rest of the region.

"China's economy is slowing down, reflecting the measures by its government to cool the overheating economy. But China is still expected to grow at a healthy 8 percent next year, and will remain a powerful engine of growth for the rest of the region," Lee said in his New Year's message.

Lee said that Singapore is benefiting from the transformation of the two giant economies of China and India, and seizing many opportunities they offer.

Singapore's foreign trade expanded strongly by 22 percent this year over last year, and exports to China and India grew by 49 percent and 33 percent respectively, he said.

The premier said that the island state's economic growth this year was 8.1 percent, and economic growth next year is projected to be between 3 and 5 percent.

He expects the economic growth in the region next year to be moderate and is cautiously optimistic about the global economic outlook.

Calling the war on terrorism is one of the major security concern next year, Lee said that people must remain vigilant to the terrorism threat as a major attack anywhere in Southeast Asia could severely disrupt tourism and related sectors for the whole region.

Source: Xinhua