It is a cyclical downturn, not a systemic problem. It's not a sudden panic. The US economy isn't fundamentally wrong. How vigorously or soon, there is a difference of views. Some people think third, fourth quarter this year.
Some people think next year.
I hope, by the end of the year, the mood will have changed. WHAT makes this slowdown more complex and, perhaps, more unpredictable than the previous two is that the set of causes is almost entirely beyond Singapore's direct control. Prof Chen said that the current slowdown is unique in the sense that it combines a weak US economy, a global electronics downturn and a very unstable regional environment. This would mean that the recovery of the manufacturing industry would be delayed. Second, South-east Asia is expected to be shrouded in political and economic uncertainties indefinitely.