"This year, we expect to grow by 3 to 5 percent," Lee, 53, said in his May Day speech.

"From the high base in 2004, this will be a good performance," he said.

Lee, in his first May Day speech since becoming prime minister in August, acknowledged job security was a major concern for many but he voiced optimism the positive outlook facing the region will also benefit Singapore.

"I know that workers are a little apprehensive, because job creation has slowed down, and a few major retrenchments are in the pipeline," Lee, 53, said.

"But overall, the economic outlook for the region and our key trading partners remain positive, and will continue to support our own growth," he said.

Lee in his speech, which was published in the Sunday Times, also said the Southeast Asian state must undertake the necessary policy measures to stay ahead or risk losing out to other neighbouring countries who are aggressively building up their economies.

The government's decision last month to lift its four-decade-old ban on casinos is just one of the several steps to remake Singapore, he said.

"They will bring in more jobs and add to the buzz and excitement of a 21st century Singapore," Lee said.

Last month, Singapore gave the nod for two integrated casino resort to be built, a move expected to create 35,000 jobs, the government said.

                                                      Home