Despite slow growth, Singapore's economic fundamentals remain strong, finds the Ministry of Finance's second issue of the Singapore Public Sector Outcomes Review (SPOR).
The report says the labour market is near full employment and job creation remains healthy. The economy is expected to expand by about 1.5 percent in 2012.
Investors find Singapore an attractive destination due to its stable business environment, a highly educated and skilled workforce, and good connections to the region and the world.
The review also said immediate challenges remain but are being addressed. These include relieving pressure in public housing and transport infrastructure.