Singapore’s labour market stayed strong in Q3 while the October manufacturing sector PMI, published today, picked up and suggests that the slowdown in industry and exports is close to bottoming out. GDP growth next year will probably be around the trend pace of 5-6%, rather than any weaker, and the expansion should accelerate during the course of 2011. Accordingly, we expect that the Singapore dollar will appreciate further; our forecast is to 1.20 per US dollar by end-2011, from 1.29 now.