1. Economy of Singapore
Singapore is a highly developed trade-oriented market economy.[10][11] Singapore's economy has been ranked as the most open
in the world,[12] least corrupt,[13] most pro-business,[14] with low tax rates (14.2% of Gross Domestic Product, GDP) [15] and has the
third highest per-capita GDP in the world; in terms of Purchasing Power Parity (PPP). Government-linked companies play a
substantial role in Singapore's economy, which are owned through the sovereign wealth fund Temasek Holdings, which holds
majority stakes in several of the nation's largest companies, such as Singapore Airlines, SingTel, ST Engineering and
MediaCorp. The economy of Singapore is a major Foreign Direct Investment(FDI) outflow financier in the world. Singapore has
also benefited from the inward flow of FDI from global investors and institutions due to her highly attractive investment climate
and a stable political environment.[16]
Exports, particularly in electronics, chemicals and services including the posture that Singapore is the regional hub for wealth
management[17][18][19] provide the main source of revenue for the economy, which allows it to purchase natural resources and raw
goods which she lacks. Moreover, water is scarce in Singapore[20] therefore water is defined as a precious resource in Singapore
along with the scarcity of land to be treated with land fill of Pulau Semakau. Singapore has limited arable land[21] that Singapore
has to rely on the agrotechnology park[22] for agricultural production and consumption. Human Resource is another vital issue for
the health of Singaporean economy.[23] The economy of Singapore ranks 5th overall in the Scientific American Biotechnology
ranking in 2013 for two consecutive years.[24]
Singapore could thus be said to rely on an extended concept of intermediary trade to Entrepôt trade, by purchasing raw goods
and refining them for re-export, such as in the wafer fabrication industry and oil refining. Singapore also has a strategic port
which makes it more competitive than many of its neighbours in carrying out such entrepot activities. Singapore has the highest
trade to GDP ratio in the world, averaging around 400% during 2008–11.[25] The Port of Singapore is the second-busiest in the
world by cargo tonnage. In addition, Singapore's port infrastructure and skilled workforce, which is due to the success of the
country's education policy in producing skilled workers, is also fundamental in this aspect as they provide easier access to
markets for both importing and exporting, and also provide the skill(s) needed to refine imports into exports.
Singapore's government promotes high levels of savings and investment through policies such as the Central Provident Fund,
which is used to fund its citizen's healthcare and retirement needs. Singapore's savings rates have remained among the highest
in the world since the 1970s.[26] Most companies in Singapore are registered as private limited-liability companies (commonly
known as "private limited companies"). A private limited company in Singapore is a separate legal entity, and shareholders are
not liable for the company's debts beyond the amount of share capital they have contributed.
To preserve its international standing and further its economic prosperity in the 21st century, Singapore has taken measures to
promote innovation, encourage entrepreneurship, re-train her workforce, and even attract foreign talents. These measures aim to
boost Singapore's productivity, so that Singapore remains competitive and ready for the challenges of an information-driven
global economy.
Economic history
This is a chart of trend of gross domestic product of Singapore at market prices estimated by the International Monetary Fund.
Year
Gross Domestic Product
($ millions)
US Dollar Exchange
Nominal per capita GDP
(as % of USA)
PPP per capita GDP
(as % of USA)
1980 25,117 2.14 Singapore Dollars 39.65 55.00
1985 39,036 2.20 Singapore Dollars 36.63 63.41
1990 66,778 1.81 Singapore Dollars 52.09 74.76
1995 119,470 1.41 Singapore Dollars 86.14 90.60
2000 159,840 1.72 Singapore Dollars 66.19 91.48
2005 194,360 1.64 Singapore Dollars 67.54 103.03
2007 224,412 1.42 Singapore Dollars 74.61 107.92
2008 235,632 1.37 Singapore Dollars 73.71 107.27
2009 268,900 1.50 Singapore Dollars 78.53 108.33
2010 309,400 1.32 Singapore Dollars 82.13 119.54
2011 270,020 1.29 Singapore Dollars – –
2013 – 1.25 Singapore Dollars –
–
Upon independence from Malaysia in 1965, Singapore faced a small domestic market, and high levels of unemployment and
poverty.[26] 70 percent of Singapore's households lived in badly overcrowded conditions, and a third of its people squatted in
slums on the city fringes. Unemployment averaged 14 percent, GDP per capita was US$516, and half of the population was
illiterate.[27][28]
In response, the Singapore government established the Economic Development Board to spearhead an investment drive, and
make Singapore an attractive destination for foreign investment.[28] FDI inflows increased greatly over the following decades, and
by 2001 foreign companies accounted for 75% of manufactured output and 85% of manufactured exports. [26] Meanwhile,
Singapore's savings and investment rates rose among the highest levels in the world, while household consumption and wage
shares of GDP fell among the lowest.[26][29][30][31]
As a result of this investment drive, Singapore's capital stock increased 33 times by 1992, a tenfold increase in the capital-labor
ratio.[32] Living standards steadily rose, with more families moving from a lower-income status to middle-income security with
increased household incomes. During a National Day Rally speech in 1987, Lee Kuan-Yew claimed that (based on the home
ownership criterion) 80% of Singaporeans could now be considered to be members of the middle-class. However, much unlike

2. the economic policies of Greece and the rest of Europe, Singapore followed a policy of individualising the social safety net. This
lead to higher than average savings rate and a very sustainable economy on the long run. Without a burdensome welfare state
or its likeliness, Singapore has developed a very self-reliant and skilled workforce well versed for a global economy.[33]
Singapore's economic strategy produced real growth averaging 8.0% from 1960 to 1999. The economy picked up in 1999 after
the regional financial crisis, with a growth rate of 5.4%, followed by 9.9% for 2000. However, the economic slowdown in the
United States, Japan and the European Union, as well as the worldwide electronics slump, had reduced the estimated economic
growth in 2001 to a negative 2.0%.
The economy expanded by 2.2% the following year, and by 1.1% in 2003 when Singapore was affected by the SARS outbreak.
Subsequently, a major turnaround occurred in 2004 allowed it to make a significant recovery of 8.3% growth in Singapore,
although the actual growth fell short of the target growth for the year more than half with only 2.5%. In 2005, economic growth
was 6.4%; and in 2006, 7.9%.
As of 8 June 2013, Singapore's unemployment rate is around 1.9% and the country's economy has a lowered growth rate, with a
rate of 1.8% on a quarter-by-quarter basis—compared to 14.8% in 2010.[citation needed]
Statistics
GDP US$425.251 billion (2013 est. PPP)
GDP growth 5.8% (Q3 2013)
GDP per capita
$78,362 (PPP, 2013 est.),[1] $51,709
(nominal, 2012 est.)[2]
GDP by sector
agriculture: 0% ; industry: 26.6% ; services:
73.4% (2011 est.)
Inflation (CPI) 1.5% [3]
Population
below poverty
N/A
line
Gini coefficient 47.3 (2011)
Labour force 3,443,700 (2013 est.)
Labour force by
occupation
Manufacturing 15.5% , construction 13.7% ,
services 70.1% , others 0.8% (2013 est.)
Unemployment 1.9% (2013 est.)
Main industries
electronics, chemicals, financial services, oil
drilling equipment, petroleum refining, rubber
processing and rubber products, processed
food and beverages, ship repair, offshore
platform construction, life sciences, entrepot
trade
Ease-of-doing-business
rank
1st[4]
External
Exports US$410.3 billion (2013 est.)[1]
Export goods
machinery and equipment (including
electronics and telecommunications),
pharmaceuticals and other chemicals,
refined petroleum products
Main export
partners
Malaysia 12.2%
Hong Kong 10.9%
China 10.7%
Indonesia 10.5%
United States 5.5%
Japan 4.6%
Australia 4.2%
South Korea 4.0% (2012 est.)[5]
Imports US$373 billion (2013 est.)[1]
Import goods
machinery and equipment, mineral fuels,
chemicals, foodstuffs, consumer goods
Main import
partners
Malaysia 10.6%
China 10.3%
United States 10.2%
South Korea 6.8%
Japan 6.2%
Indonesia 5.3%
Saudi Arabia 4.5%
United Arab Emirates 4.1% (2012 est.)[6]
FDI stock $746.7 billion (2012 est.)

3. Gross external
debt
$1.174 trillion (31 December 2012 est.)
Public finances
Public debt 118.2% of GDP (2011 est.)
Revenues S$59.51 billion (2014 est.)
Expenses
S$56.66 billion (2014 est.) note:
expenditures include both operational and
development expenditures
Economic aid none
Credit rating
 Standard & Poor's:[7]
AAA (Domestic)
AAA (Foreign)
AAA (T&C Assessment)
Outlook: Stable[8]
 Moody's:[8]
Aaa
Outlook: Stable
 Fitch:[8]
AAA
Outlook: Stable
Foreign
reserves
US$273.658 billion (July 2014)[9]