The measures, amounting to $11.3 billion (US$6.2 billion), were larger than had been expected. Analysts had predicted of a package similar to the $10.5 billion delivered during the Asian financial crisis.

The package will result in a budget deficit of $4 billion in fiscal 2001 and 1 billion dollars in 2002.

"They have reacted strongly, I'm impressed by that. They did things for the voters, they did stuff for corporates, education and to help the unemployed," said William Belchere, managing director of economic research at Merrill Lynch. "It does not affect the outlook too much but it puts a floor under how bad things are going to be."

Singapore, with official reserves of $133 billion, has the clout to help the economy. But analysts question its ability to counter waning external demand when total exports are three times the size of its gross domestic product.

"Over the next 12 to 18 months, we can expect low growth, more retrenchments and higher unemployment," the deputy prime minister, Lee Hsien Loong, said in parliament.

"Even as we cope with the cyclical downturn, we will need to make structural changes in our economy to adapt ourselves to the permanently altered environment."

On Wednesday (Oct 10), Singapore said that advance third-quarter data, largely based on two months of numbers, showed that GDP fell 5.6 percent compared with a year earlier. Singapore also said the economy would contract about 3 percent year-on-year in 2001.

Singapore unveiled a $2.2-billion package in July, before it plunged further into the doldrums as key electronics exports shrank and trading partners suffered slowdowns.

The first set of measures also came before the Sept. 11 attacks on the United States, Singapore's second-biggest market.

Among the measures Mr. Lee detailed:

•Acceleration of infrastructure projects ($3.5 billion).

•Corporate tax rebates ($975 million).

•Personal tax rebates ($650 million).

•Increased property tax rebates ($880 million).

•Easing of property anti-speculation measures.

Mr Lee said pension cuts, while a last resort, could not be ruled out as the crisis deepens.

The government - expected to call an early general election this year - unveiled a "New Singapore Shares" plan worth $2.7 billion and said it would announce details Oct. 16.

Analysts said the shares, which will be given to citizens, would work like bonds in which dividends are given each year until 2007, when the government redeems the shares.