On the eve of Chinese New Year Singapore PM Goh Chok Tong announced that the government had reviewed this years growth estimates upwards to 1 to 3%.

Traditionally at Chinese New Year, Chinese Singaporeans (making up 75% of the population of around 4 million), together with mainland and immigrated Chinese worldwide exchange small red "packets" contained token amounts of money in auspicious denominations for good luck. This is the government's own red packet to it's people, and the stock market rose as a result in their half-day only trading this Chinese New Year eve.

Coming after a year of the snake which shocked Singapore into their worst recession for quite a few decades, this is just the sort of fillup that CNY parties need in the Lion State.

Considering that unlike neighbouring states, official estimates of local growth are conservative and careful, and taken together with generally optimistic forecasts from the G7 conflab, it is good cause for optimism.

All of course is dependent on continued global growth, which the small island state with a very limited domestic market relies on. In the background lurks the threat of regional instability from an increasingly hawkish and gung-ho America and local extremists themselves.

Singapore has never made a secret of the fact that they see regional political instability mainly due to Islamic extremism and moves towards Islamic states in Indonesia in particular as their major long term threat. Yet even Cheif Minister Lee admitted that he was "surprised" that the threat had also manifested itself on home ground.

In the meantime however there is cautious optimism for the Singapore economy - See
Govt ups 2002 growth forecast to 1-3% - February 11, 2002

Excerpt: (SINGAPORE) The government has revised upwards its growth forecast for the Singapore economy this year to between 1 and 3 per cent - compared with its previous official projected range of minus 2 to plus 2 per cent announced in October.

Note that China, Japan, South Korea, Taiwan ROC, Malaysia, Vietnam are closed already for Chinese New Year. Singapore is closed for the afternoon only. It's holiday time over here! Gong Xi Fa Chai... Kung Hei Fat Choy...