The People's Action Party (PAP), which has overwhelmingly dominated parliament for 36 years, returned to power on nomination day when the fragmented opposition contested just 29 of 84 seats for the November 3 election.

"Singapore must be prepared for several more months of economic downturn -- a deep, long recession," Goh told a news conference after the nomination tally was announced.

"The concern that we have is how do we prevent jobs from being lost, how do we create new jobs and how do we help those who lose their jobs. Secondly, there are also some security concerns as a result of global terrorism."

Goh has said he went to the polls 10 months early because the fallout from the September 11 attacks on the United States posed the most serious crisis since Singapore split from the Federation of Malaysia in 1965.

He said this election would be his last as prime minister but that he would continue to play an important role.

Deputy Prime Minister Lee Hsien Loong, also chairman of the central bank and son of first prime minister Lee Kuan Yew, has been tipped to succeed Goh within the next parliament.

ECONOMY, JOBS THE KEY ISSUE

Singapore is facing its worst recession since independence and unemployment is set to hit 4.5 percent by the end of the year, but the PAP was not expected to lose much ground to an opposition that has never held more than four seats.

The economy grew nearly 10 percent last year but is expected to contract three percent this year as the island of four million people suffers from its heavy reliance on electronics and the whims of external demand.

The snap election has been a non-event for the markets but is still an important barometer of PAP policy for local voters and international investors as the government seeks to retool the economy to boost flagging exports.

"The prime minister himself has said he wants to get this over with because there are really serious issues to be dealt with," said Gillian Koh, research fellow at the Institute of Policy Studies think-tank.

"He needs to feel that he has a strong mandate. They will require that strong mandate even if they are returned unopposed."

The government set out a S$11.3 billion ($6.2 billion) stimulus package of tax rebates, infrastructure projects and cash handouts just a week before sending Singaporeans to the polls.

NO FULL ELECTION SINCE 1988

The PAP last faced a full election in 1988. The opposition handed victory to the ruling party before election day in 1991 and 1997 by contesting less than half the seats.

In 1997, the PAP won 65 percent of the vote and 81 of 83 seats. Six years earlier, it took 77 of 81 seats with 61 percent.

Opposition parties have complained about redrawn boundaries and multi-seat wards that tax their candidates and cash with deposits of S$13,000 (US$7100) per seat.

The most viable of the 22 opposition parties were contesting all nine single seats and four "winner takes all" multi-seat wards as they seek to make political capital out of tough times.

Low Thia Khiang, chief of the Workers' Party, was not surprised the PAP was returned to power on nomination day.

"It's expected. Let's be honest about it, the opposition's ability is limited," he said.

Goh said Finance Minister Richard Hu will retire after the November 3 poll day to make room for some of the fresh blood among 25 new candidates the PAP is fielding.