1. SINGAPORE
BACKGROUND
Singapore is a nominally democratic state that has been ruled by the People’s Action
Party (PAP) since 1965, when the country became independent. The May 7, 2010,
election left the PAP in power but put six opposition members into Parliament with
the PAP winning its lowest percentage of the popular vote since independence.
Certain rights, such as freedom of assembly and freedom of speech, remain restricted,
but the PAP has also embraced economic liberalization and international trade.
Singapore is one of the world’s most prosperous nations. Its economy is dominated by
services, but the country is also a major manufacturer of electronics and chemicals.
ECONOMIC ANALYSIS
The population of Singapore is 5.2 million and its GDP (PPP) IS$291.9 billion
with14.5% growth in 2010 5-year compound annual growth 6.4% $56,522 per
capita Unemployment: 2.1% Inflation (CPI): 2.8% FDI Inflow: $38.6
billion Public Debt: 96.3% of GDP
ECONOMIC OVERVIEW Currency: Singapore dollar Exchange Rate
Inflation Rate (consumer prices) (2001E): 1.0% (2002E): 0.1% Current
Exports: Machinery, petroleum and petroleum products, chemicals, telecommu
Major Imports: Machinery and transportation equipment, petroleum and pet
Hong Kong, Japan, Malaysia, Taiwan, Thailand, United States Total Externa
Singapore’s economic freedom score is 87.5, making its economy the 2nd freest
in the 2012 Index. Its score is slightly higher than last year, reflecting gains in
freedom from corruption and financial freedom that offset losses in labor and
monetary freedoms. Singapore is ranked 2nd out of 41 countries in the Asia–
Pacific region, and its overall score remains significantly higher than the world
average.
The foundations of economic freedom in Singapore are firmly sustained with strong
protection of property rights and effective enforcement of anti-corruption laws. The
government is very efficient, with competitive tax rates and low government
expenditures. The regulatory environment is flexible and transparent, encouraging
vibrant commercial activity. A strong tradition of openness to global trade and
investment continues to boost productivity while facilitating the emergence of a more
dynamic and competitive financial sector.
2. While the private sector has been the source of Singapore’s economic success, the
government maintains a proactive role in guiding economic development. State
ownership and involvement in key sectors remains substantial. A government
statutory entity, the Central Provident Fund, administers public housing, health care,
and various other programs, and public debt is over 90 percent of GDP.
According to in depth Singapore economic analysis a highly developed and free-
market condition is prevalent in economic scenario of Singapore. In fiscal year 2008,
GDP of Singapore with regard to purchasing power parity has been estimated to be
$244 billion. Per capita income related to GDP was found to be $52,900 in 2008.
Gross domestic product real growth rate has been shown to be 3 percent in 2008,
while GDP as per official exchange rate, as per statistical information, was $192.8
billion.
Detailed economic analysis at Singapore has shown that open and corruption free
market condition with stable price are main features of Singapore economy. It has
been found with economic analysis in Singapore that per capita GDP is equivalent to
four major countries of West Europe. Export of goods is main source of income in
Singapore economy.
Singapore economic analysis shows that various sector of nation have different
composition in GDP. There is no contribution from agricultural sector in Singapore.
Industrial sector contributed 33.8 percent to economy of nation in 2008 fiscal, while
66.2 percent came from service sector. As was estimated in 2008, total labor force of
Singapore was 2.81 million. They are distributed in various sectors of economy.
Industrial sector constituted 22.6 percent of labor force, while service sector
accounted for 77.4 percent, as was estimated in 2007. 2008 data shows that
unemployment rate was approximately 2.3 percent.
Economic analysis of Singapore will show that exports of consumer electronics,
information technology products and pharmaceuticals add to economic growth of
Singapore. Between 2004 and 2007, there was a 7 percent growth in real gross
domestic product but rate dropped to 1.2 percent in fiscal year 2008 because of global
financial crisis. Recession struck world economy and that reflected in economy of
Singapore too. Prime Minister Lee and other senior officials could not guarantee for a
fast come back in 2009. Singapore economic analysis has revealed that property,
retail and business services will suffer because of recession.
Singapore economic analysis also points out major industrial products that contribute
to economy of this Asian nation. Major products include electronics, chemicals,
rubber processing and rubber products, offshore platform construction, oil drilling
equipment, financial services, processed food and beverages, petroleum refining and
ship repair. Orchids and vegetables are major agricultural product of Singapore.
Singapore is now focusing on different avenues for development in economy that will
be less susceptible to demand cycles of world. Singapore economy invites investment
in production of medical technology and pharmaceuticals. This will contribute in
making Singapore greatest financial and high-tech hub in whole of Southeast Asia.
