Analysts said that some services industries will fare better this year amid China's reopening, while manufacturing, especially electronics, is likely to weigh on growth in the short-term.
The current central bank monetary policy stance remains appropriate, said Edward Robinson, Deputy Managing Director at the Monetary Authority of Singapore said.
"Looks like the window remains open for a tightening if core inflation remains very sticky on the downside," she added.
Since April last year, Singapore had lifted most of its COVID-19 restrictions with many international events returning to the city-state, attracting tourists and businesses.
Reporting by Chen Lin in Singapore; Editing by Sam HolmesOur Standards: The Thomson Reuters Trust Principles.