The outgoing prime minister is leaving on an economic high note

It is the fastest quarterly expansion in a decade, and confirms the country's status as one of Asia's fastest growing economies.

The growth is flattered by poor economic performance last year, when the economy was hit by Severe Acute Respiratory Syndrome (Sars).

The economy grew 11.9% in the second quarter from the first quarter.

On Monday, the Ministry of Trade and Industry (MTI) forecast growth of between 8% and 9% for the whole year, putting Singapore on a par with China, the fastest growing economy in Asia.

Strong export orders drove growth this year, the MTI said.

Growth is expected to slow in 2005, however, as demand for global electronics goods slows, it added.

"The very robust expansion of the economy in 2004 will imply slower growth next year, partly attributable to the high base effect," said Friedrich Wu, director of the MTI's economic division. The news had little impact on Singapore shares, with the Straits Times Index falling just 1% to end at 1,901 points.