Singapore GDP up 3.1% in 4Q17

However, the manufacturing sector fell 11.5% QoQ and construction dipped 8.5% YoY.

The Singapore economy grew 3.1% YoY in 4Q from last year's 2.9%, according to advance estimates issued by the Ministry of Trade and Industry.

The manufacturing sector slowed down 11.5% QoQ due to higher base of comparison but grew 6.2% YoY thanks to robust output expansions in electronics and precision engineering clusters.

Construction was also weak after posting 8.5% YoY decrease in 4Q due to private sector construction activity weakness.

However, OCBC Treasury Research notes that the services sector showed notable growth at 3% YoY on the back of finance & insurance, wholesale & retail trade and transportation & storage sectors.

Moving forward, OCBC remains sanguine on 2018 growth outlook at 2-4%.

A potential GST hike also pose considerable risk as it may sway private consumption patterns although OCBC notes that some likely offsets through GST vouchers and other rebates would help ease the transition for low-income households.