Singapore economy

 

 

 

 

 

 

 

Singapore economy

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STRATEGY

• In 2008 the company registered a surplus of US$22.5 billion: Singapore’s total imports and exports improved to over four hundred percent of the total GDP of the country. The surplus fund’s main contribution was a high rate of re-export, which accounted for more than fifty percent of the country’s technology-intensive product.
• The country has sustained high domestic fixed investments: Singapore has maintained a 28.5% domestic a fixed investment, which is higher compared to 25.7% for ASEAN countries and 19.7% for OECD countries. The main reason for the exemplary performance is favorable rules and regulations for conducting business.
• Quality education: since 2003, the country came up with an education policy that enables children between the ages of six to fifteen years to acquired free education (Goh & Gopinathan, 2008). The policy was intended to obtain flexibility and allow children to acquire special education. The policy has enabled the country to enjoy expertise from various fields.
• The establishment of CCS has ensured collaboration among industries. In 2005, Singapore created the Competitive Commission of Singapore (CCS) that enables the country to solve rivalry in the business environment among sectors in the county. However, banking, transport, media, postal, and telecommunication remain unsolved under the competition law’s jurisdiction.
• Research and development: the country has also establishment Institute and Engineering Science (ICES) and the Chemical Process Technology Center (CPTC) that has enabled Singapore to expose its personnel to evidenced-based expertise through research and staff training. ICES and CPTC have enabled the country to employ competent employees.
• Singaporean identity: The country has strong identity policies that unite all ethnic groups in the country. Chinese account for more than 62%, Malays 14%, Indians 16%, and other groups constitute 8%. Singapore has successfully accommodated diverse ethnicity by creating education policies that allow schools to teach other languages.

CONTEXT

• Singapore has a better working environment: in 2008, Singapore was ranked fourth, just behind Norway and much ahead of Hong Kong, Ireland, and United States. The main reason behind the success is a good working environment that accommodates quality education and human resource.
• Geographical area: Singapore is located strategically at one end of the Straits of Malacca, which facilitate trade among foreign countries. Additionally, the policy of duty-free trade has been beneficial in the country since there is fairness in the policies governing exports and imports of products.
• Housing Investments: Currently, the employment rate is at 4.38%, which has continuously decreased from 10% in 1965. The country has been able to create some jobs through housing investments and EDB.
• High access to human resources from a foreign countries: labor productivity in Singapore is at ninety-six percent of the OECD. The main contributors to the productivity are temporary foreign workers who are qualified and expert in the industrial sectors and technology. The foreign workers also have high labor mobilization rate.
• Better information technology: Singapore has invested much in information technology, which accounts for 3.6 % of its GDP. The industry had created more than ninety thousand jobs in the country. Additionally, the electronics manufacturing industry also accounts for 4.7% of the country’s GDP.
• Effective trade unions: Singapore has ensured that employees in the country are no exploited by their employers. The government has established the Trade Unions Act of Singapore that regulates employees’ and employers’ unions.
• Informal rules: Singapore has an impressive business culture which encourages citizens to remain competitive in the entrepreneurial environment. Entrepreneurial skills are taught to children at a very little age to prepare them for future investments skills.

PERFORMANCE

• Political stability: the other main contributing factor to the Singapore high performance is collaboration of politicians in enhancing development in the country. Political stability enables the government to reduce income inequalities among its citizens. The level of corruption among the leaders is also very low compared to western countries.
• The county had improved fertility rate by 2020. Between 1980’s and 2000 the fertility rate was at 1.3 births per woman which was below the rate of 2.1 that is embraced by developed countries. As a result of anticipating future decline the man power in the country used immigration policy to encourage its citizens to have more children (Yang & Zhan, 2017).
• Financial Industry Competency Standards (FICS): FICS policy was created to ensure Singapore compete favorably in the foreign exchange trading. Before the establishment of the policy the United Kingdom was five times higher than Singapore in the foreign exchange trading. Today, Singapore is the leading in foreign exchange trading.
• Tariffs: generally Singapore is generally an open economy and a free port. More than ninety nine percent of all imports enter Singapore duty-free. The main reason why Singapore adopts the policy is the strategies to encourage foreign investors that promote the economy my creating job opportunities.
• Gross National Product (GNP). As a result of favorable rules and regulation in the business environment, Singapore has been able to maintain a consistent improvement in its GNP (Watanabe, Naveed & Neittaanmäki, 2015). For instance, in 2017 the country improved by 2.54% from 2016, in 2018 the country improved by 7.09 from 2017.
• Since independence Singapore’s economy has drastically improved: Between 1965 the country was able to improve its GDP from $ 500 to $ 10000 in 1989. Favorable policies, rules and regulations that have encourage foreign investments.

 

 

 

 

 

 

 

References

Goh, C. B., & Gopinathan, S. (2008). Education in Singapore: Development since 1965.

Yang, H., Yang, P., & Zhan, S. (2017). Immigration, population, and foreign workforce in Singapore: An overview of trends, policies, and issues. HSSE Online, 6(1), 10-25.eferences

Watanabe, C., Naveed, K., & Neittaanmäki, P. (2015). Dependency on un-captured GDP as a source of resilience beyond economic value in countries with advanced ICT infrastructure: Similarities and disparities between Finland and Singapore. Technology in Society, 42, 104-122.