By Lydia Lim, Senior Political Correspondent

IT WAS not so long ago when some of us were bemoaning certain effects of an economy speeding along in fourth gear.
Disturbing questions emerged about who the growth was for, and whether a disproportionate share of its benefits was going to foreign talent while vulnerable locals on lower incomes struggled to cope with soaring prices.

Among the more visible and unsettling of such growth's effects was the tearing down of apartment blocks, and tearing apart of communities, linked to a frenzy of en bloc sales.

Another was a huge inflow of migrant workers sucked in by the economy's enlarged appetite for labour.

Some older Singaporeans felt disorientated by the pace of change and struggled to recognise the new creature that the country they had grown up in had morphed into.

They also struggled to understand the free-wheeling, free-spending habits of some among the younger generation who lived life as if it were an endless party.

Growth had its upside and not just for the wealthy.

The income gap narrowed last year for the first time in 10 years, as families in all income groups enjoyed higher earnings.

A key reason for the rise in income was the buoyant labour market, which saw more people with jobs and drawing higher salaries.

Quarter after quarter, the economy created a record number of new jobs - a trend that Singaporeans soon came to take for granted.

Many people also saw the value of their assets appreciate as property values and rents soared.

But now, that growth has come to a screeching halt and a slowdown, not of our choosing, is upon us.

The global crisis has rendered a simmering debate over whether Singapore should go for growth at all costs, or deliberately rein it in to prevent the economy from overheating, moot - at least for now.

The deceleration has been so rapid that government officials described trade figures as having fallen over a cliff in December and last month.

On Sunday, the Prime Minister asked Singaporeans to fasten their seat belts because things will get worse before they get better.

He warned that the year ahead will be 'very tough' and Singaporeans need to be psychologically ready to think in terms of several slow years after that.

By slow, he meant growth of 2 per cent or 3 per cent in the next four to five years, following this year's shrinkage of up to 5 per cent.

That means the economy is likely to expand at only a third the pace of the boom years from 2004 to 2007, when growth averaged 7 per cent or 8 per cent a year.

Whether we like it or not, all of us will now have to accept a far more sedate pace of growth.

The situation presents us with a rare opportunity to experience for ourselves life in the slow lane, without having to either relocate or emigrate. As we shift into lower gear, we may be able to see what is around us more clearly.

One area to pay attention to is whether slower growth has the desired effect that some of us believed it might, of ameliorating some of our city's most trying social woes.

Will it work like a magic wand to change the priorities and tenor of society?

Might it enhance people's quality of life, nudging them to invest more time in family, friends and cherished personal pursuits?

Will people smile more, become more gracious and civic-minded?

Will the income gap narrow, especially now that top executive pay and million-dollar bonuses are increasingly coming under fire around the world?

Or will we discover that the grass is after all, not really greener on the other side?

Early indications are that those who hang on to their jobs might actually do pretty well by this downturn.

Consumers with money to spend may experience the next few years as an extended Great Singapore Sale, with bargains aplenty.

Witness the record sales at the travel fair held over the last two weekends, thanks to middle-class Singaporeans who declared that recession or no recession, overseas travel was now a must for them and their families.

Many were gleeful that they had snapped up tour packages to places like China and Europe at hefty discounts.

Something similar happened during the Great Depression of the 1930s.

Falling prices meant that those who kept their jobs saw their real incomes rise, putting many of the good things in life well within their reach.

But it was a very different story for those who lost their jobs.

Today, the spectre of massive layoffs hangs over the Singapore workforce, though the Government and unions have pledged to do all they can to minimise the speed and scale of the coming wave.

Labour chief Lim Swee Say said workers should brace themselves for record levels of joblessness, with layoffs having picked up pace after the Chinese New Year.

On Wednesday this week, DBS Bank said it expected the economy to lose 99,000 jobs in the current slump and for the unemployment rate to rise to 5 per cent by the middle of next year.

Even in a recession, the economy will be split between the haves and the have-nots, in this case, those with jobs and those without.

And even the unemployed will be split between those with the resources and wherewithal to sit out the next few years without feeling much of a pinch, and those who will not be able to keep themselves and their families afloat without help from state and community.

It is unlikely that the current crisis will settle the debate over the ideal rate of growth for our economy but it will certainly give us a taste of life in the slow lane.

Some of us will struggle to survive the ride while others will have the luxury of enjoying it.

This article was first published in The Straits Times.