Why Singapore is Asia's most vulnerable to weaker global growth

It would be badly hurt by China's slowdown.

Nomura continues to expect fiscal policy to remain focused on the government‟s medium-term goal of increasing productivity and restructuring the economy, rather than supporting growth. 

"As such, we continue to expect a fiscal surplus of 1.0% of GDP versus the budgeted surplus of 0.7% of GDP in FY13," Nomura said.

Nomura also said that with exports at 200% of GDP, Singapore is most vulnerable in Asia to weaker global growth. A sharp slowdown in China, particularly, would likely hit Singapore hard given strong trade links between the countries. Financial market volatility and a sharp rise in onshore interest rates from a Fed QE taper are also risks to the economy.