Singapore PM says China's economic outlook optimistic

DAVOS - Singapore Prime Minister Lee Hsien Loong on Thursday expressed optimism towards China's economic outlook in the next few years at the Davos Annual Meeting.

Speaking at a session titled "the Outlook for East Asia," Lee said he was fundamentally optimistic with the Chinese economy.

Asked whether the stimulus spending by the Chinese government during the financial crisis would cause a "hard landing" of its economy, Lee said, "I can't say that there will be no bumps in short term, but I think that in the long term the trend will be up."

Lee said China was making rapid economic progress and undergoing quick urbanization, and was thus in need of facilities such as roads, hospitals, schools and houses by the millions.

"And every year, one percent of the population is moving into cities, which means 30 million more people need infrastructure," Lee said.

Lee also suggested that China should continue its efforts to restructure its social safety net, properly distribute and utilize profits generated by state-owned enterprises, as well as balance investment and consumption in order to ensure future growth.

"These will work for the years to come," he said.