BY KOH HUI THENG

THE report card for Singapore's economy is out, and the only star performer was the construction industry, which grew over 20 per cent last year.

The export-reliant economy contracted by over 16 per cent in the fourth quarter, but managed an overall growth of 1.1 per cent last year, the Ministry of Trade and Industry said yesterday. Unfortunately, the ministry expects the economy to slip further, and contract by as much as 5 per cent overall this year.

There are several reasons for the sluggish showing. The global downturn has hit home, and the manufacturing, financial and business-services sectors have dipped. The manufacturing sector, for example, has shrunk by 4.1 per cent.

Thankfully, though, things are still looking up in the construction industry. The sector grew 20.3 per cent last year, up from the previous year's 18.2 per cent.

This was due to a rise in the number of projects, such as the integrated resorts.

A Building and Construction Authority spokesman said: 'Total construction demand reached $34.6 billion last year... (which) translates into job opportunities for people amid the weak economic outlook.'

However, CIMB-GK economist Song Seng Wun said that despite this bright spot, things would get worse before they get better.

The economy's full-year contraction 'could be up to 10 per cent' this year, he said. Disappointing worldwide demand for manufactured goods and services is a major factor, he explained.

For instance, Taiwan's manufacturing sector declined 44 per cent last month, led by a slump in the technology sector.

The last time manufacturing dipped was in 2001, during the 9/11 attacks in the United States. But the sector recovered within months.

However, the present slump may 'persist for the rest of the year', said Mr Song.

The tough times have spurred retrenched workers like Mr Matthew Koh, 30, to look for openings in other industries.

The electronics engineer said: 'Being axed earlier this month was hard but some industries are still employing. I'll try my luck in pharmaceuticals and maybe the civil service.'

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