Singapore Prime Minister Goh Chok Tong lifted the nation's 2004 economic growth forecast to 8-9 percent from 5.5-7.5 percent Sunday and said the buoyant projection made it the perfect time for him to stand down.
In his final National Day address before handing over the leadership to Lee Hsien Loong on Thursday, Goh said he was extremely happy with Singapore's economic and social development since becoming prime minister in 1990.
"I have piloted Singapore for nearly 14 years. Everything is in good working order," Goh said in a nationally televised address.
"The economy is growing strongly for the whole year, we can expect growth to be between 8 and 9 percent. Now is a good time for me to hand over the controls to a new captain and his crew."
Singapore's economy expanded at 11.7 percent year-on-year in the second quarter, its fastest pace since before the 1997-98 Asian economic crisis.
Singapore had already increased its growth targets for this year in May from 3.5-5.5 percent to 5.5-7.5 percent, after the economy expanded 7.5 percent on an annualised basis in the first three months of the year.
Goh said Lee, the son of Singapore's founding father Lee Kwan Yew and one of two deputy prime ministers as well as finance minister and head of the central bank, would face "different and tougher" economic challenges after taking over.
"The world has become more uncertain. The global economic environment will be more competitive. We must expect lower-skilled jobs to migrate to lower-cost countries. Older, less-educated workers will have to be retrained," he said.
Singapore's economy has already undergone a major restructuring over the past few years, with the government scaling down many low-skilled manufacturing industries and building up high-tech sectors such as biomedicine.
Despite the challenges, Goh said he was departing with full confidence about Singapore's future.
"We may meet the occasional storm but we will pull through," he said.
Goh traditionally delivers his National Day address on the eve of the nation's birthday. Singapore celebrates its 39th year of independence on Monday.