The weak second quarter economic performance was due to a contraction in the biomedical sector and sluggish growth in the electronics industry, both lynchpins of Singapore's trade-led economy, the trade ministry said. Back in June Singapore's electronics industry was up, reversing a one-month fall into recession, but overall growth has been slow for this export segment during 2008. 

"The GDP growth in the second half is likely to be broadly similar to the first half," the ministry said. "Weaker demand in the major economies, coupled with the need to contain inflationary pressures, will dampen growth in the fast growing Asian economies."