Singapore - Singapore shares rose by 2.16 per cent Friday, starting the new year on a positive note though traders remained concerned about the deepening global economic recession.

The Straits Times Index (STI) rose by 38.16 points or 2.16 per cent to 1,799.72.

The Singapore Exchange closed with 305 gainers against 113 losers.

Volume totaled 955.5 million shares.

Market analysts said the first day of 2009 trading brought out buyers, lifting the STI, which for the whole of last year had dropped by 49 per cent.

Singapore  - The Singapore government has lowered the city state's economic growth projection to between minus 2 per cent and plus 1 per cent for 2009, lower than it had forecast in November 2008.

The global economic crisis has worsened since November, with sharp declines in global demand, trade and investments, said the Trade and Industry Ministry in a statement Friday.

In November, the ministry had anticipated growth ranging from minus 1 per cent to plus 2 per cent.

Singapore  - Environment experts are expected to release a climate change report on Singapore this year, highlighting the impact on coastal erosion, water scarcity and higher energy demand, according to a news report Thursday.

Even though there are no melting icebergs or severe droughts threatening the city state, in Singapore, the tropical island could still be vulnerable to climate changes such as coastal erosion, water scarcity, and higher energy demand, the Channel News Asia cited experts as saying.

Singapore  - Singapore's open economy cannot avoid being hit by the global economic recession and will face difficult prospects this year, Prime Minister Lee Hsien Loong warned in his New Year's message delivered Wednesday night.

The global economic recession, the most serious in 60 years, would be followed not by a quick rebound, but by several more years of slow growth, Lee cautioned. He said he expected the first half of this year to be difficult for Singapore with more companies downsizing, resulting in job losses.

Singapore  - Singapore is slashing interest rates by more than a full point and increasing its share of insurance premiums on officially approved business loans, news reports said Wednesday.

The rate cut of 1.25 per cent and increased coverage of loan insurance to 90 per cent from 50 per cent will be effective as of effective as of January 1, 2009, officials said.

Singapore  - Expressing concern over the continuing bombardment of the Gaza Strip, Singapore urged Israel and Hamas to exercise restraint and renew a truce that ended December 19.

"We are deeply concerned about the situation in Gaza with mounting civilian casualties and the possibility of a humanitarian catastrophe," the Singapore Foreign Ministry said in a statement.

"We urge all parties to exercise maximum restraint and work towards an early re-establishment of the ceasefire," it said.