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This is Singapore's year, predicts economists as Singapore "upgraded its 2010 forecast to a blistering 13 to 15 per cent expansion", which is a steep rise from an earlier estimate of 7-9 per cent growth, AFP reported in mid-July.

Despite worries over the US economy and the European debt crisis, the island state is set to overtake China's growth of 10 per cent.

Having the world's fastest growing economy in 2010 will be hard to sustain, said Singapore's Prime Minister, adding that growth in the second half of this year will be slower than the first half.

When the growth is so fast, the economy gets tight and labour shortage begins, said Lee Hsien Loong at a press conference held in conjunction with the fifth Asean Journalist Visit Programme hosted by Singapore in August.

"But, whatever it is, if the opportunity is there, we are happy to take it. I think this is from the rebound last year when we had a very bad year. Also, during last year, we set ourselves in a position so we will be ready to grow when the wind came and sun shines again," he said.

However, Lee said he did not think the current situation will continue indefinitely.

The PM said that next year, will not be like the current year.

"It's a good progress and we have to make the most of it. For the longer term, a sustainable growth rate will be three to five per cent and that's what we are aiming for. It will require a lot of work because you cannot grow by having to rely on more foreign workers or labourers. You must grow by qualitative improvement of work force, of our investments, on our companies, of the way they are organised and that's a lot of work," said Lee.

When asked about the global power shift to Asia, Lee said that he would not put it so strongly.

"Asia is developing and growing, but Asia is not the centre of the world, nor is it the only source of economic vibrancy, technology or military. It is growing and therefore its weight in the world will increase and the centre of gravity for the world's economy will shift towards Asia," he said.

But, Lee warned that Asia is not going to be the only region which has an advanced or developing community, nor will it be a super power in the world for a long time to come.

"We have an important role to aid economies like Europe which has a big economy although they are not growing as vibrantly. But Europe's economy is bigger than America's and they are a developed economy although with variations in different places. I think the model is not that we have arrived, but that we are part of an inter-connected world and have to work together in order to prosper," said Lee.

As for China, whose economy has slowed down slightly but remains a strong military and political influence, the Prime Minister did not express any worry as he explained that Southeast Asia's interest with China are about improving prosperity and achieving stability, as well as being friendly with its neighbours.

"At the same time Southeast Asia has got significant interests and links with other partners, particularly India, which also is growing well and the United States, which has historically played a strategic role in ensuring the security of the region," he said.

"We also have links with Japan, even though their economy has slowed and has been facing difficulty for a number of years, it still has considerable economic power, strength and technology with the capability to invest and influence the economy of Asia for the better," he added.

Singapore's Foreign Affairs Minister, George Yeo, earlier last week also touched on the region's economy. "The river will never stop flowing and the philosophy is night follows day and day follows night. We take a cautious approach towards good and bad tidings. The economy is strong now, so be happy while it stays up," he said.