"We need at least two more quarters of solid growth, first and second quarters in 2004, to ensure that we are completely out of the woods," he was quoted as saying in the Straits Times.

Speaking to local reporters at a community event on Sunday, Tan warned of unforeseen risks that could derail the city-state, whose economic wealth is largely derived from foreign trade.

Tan, who is one of Singapore's two deputy premiers, cited the Severe Acute Respiratory Syndrome (SARS) health scourge as one that caught the region, including the city-state, off guard and inflicted heavy damage last year.

"We live in an unpredictable world," he said, adding problems could come from "the most unexpected places."

SARS severely affected Singapore's economy in the first-half of 2003 but managed to rebound in the final six months as gross domestic productexpanded an annual 0.8 percent.

The official growth target for 2004 is 3.0-5.0 percent, although private sector economists expect an even better performance.

Tan also reiterated there would be no let-up in the goevrnment's drive to restructure the economy and create new growth sectors in the face of intense competition from neigbouring countries.

"It's not only the Kuala Lumpur airport or Bangkok airport which are competing with Singapore to be air hubs," he said.

"Our neighbouring countries are also competing with us even in areas where we are trying to develop. Like health services."

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