Singapore's Public Service Division said in a statement that some civil servants will for the first time receive a so-called growth bonus tied to the city-state's economic performance.

"Good performers will receive 0.5 months of growth bonus, and better performers will receive more, up to 0.8 months," it said, adding that the economy had performed better than expected.

The government expects the $129 billion economy to expand by 7.5 to 8 percent this year compared with 7.9 percent in 2006.

Wages are rising in Singapore, as are rents, property prices, food, and transport costs. The jump in costs has fueled investor concern that the trade-dependent economy may overheat and that inflation, forecast to peak at 5 percent in the first half of next year, could become a serious problem.

Th government said on Tuesday that monthly wages rose 7.7 percent to S$2330 in the 12 months to June 2007, according to the median of an official survey, up strongly from annual wage increases of just 1.6 percent from 2004 to 2006 and 1.2 percent from 1998 to 2004.

                   Home