I regard the slowdown we're seeing in Singapore, and indeed throughout the region, as fundamentally healthy. But it's also going to be painful for certain industries, specific companies and unwary investors. Singapore is a good example. The boom in the global electronics industry over the past few years has had a dramatic effect, boosting economic growth above virtually all forecasts. I find it hard to understand this reaction to a cyclical event, which should have been expected.
Cycles are part of life, and so is development.
Development or economic success brings its problems and I think that is what we are seeing in Asia today. All the region's economies are starting from a higher base each year, so sustaining high growth levels is ever harder. Corporate earnings are coming in much as we expected, but we have had forecasts well below the consensus. This is a function of increasing costs and increasing competition. With tariff barriers coming down across the region, businesses are moving across borders ever more rapidly.