Economy of Singapore

The economy of Singapore is a highly developed free-market economy.[12][13] Singapore's economy has been ranked as the most open in the world,[14] 3rd least corrupt,[15] most pro-business,[16] with low tax rates (14.2% of Gross Domestic Product, GDP)[17] and has the third highest per-capita GDP in the world in terms of Purchasing Power Parity (PPP). APEC is headquartered in Singapore.

State-owned enterprises play a substantial role in Singapore's economy. Sovereign wealth fund Temasek Holdings holds majority stakes in several of the nation's largest companies, such as Singapore Airlines, SingTel, ST Engineering and MediaCorp. The Singaporean economy 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 its highly attractive investment climate and a stable political environment.[18]

Exports, particularly in electronics, chemicals and services including Singapore's position as the regional hub for wealth management[19][20][21] provide the main source of revenue for the economy, which allows it to purchase natural resources and raw goods which it lacks. Moreover, water is scarce in Singapore[22] therefore it is defined as a precious resource along with the scarcity of land to be treated with land fill of Pulau Semakau. Singapore has limited arable land,[23] meaning that Singapore has to rely on the agrotechnology park[24] for agricultural production and consumption. Human resources is another vital issue for the health of the Singaporean economy.[25] The economy of Singapore ranks 2nd overall in the Scientific American Biotechnology ranking in 2014,[26] with the featuring of Biopolis.

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's trade to GDP ratio is among the highest in the world, averaging around 400% during 2008–11.[27][28] The Port of Singapore is the second-busiest in the world by cargo tonnage.

To preserve its international standing and further its economic prosperity in the 21st century, Singapore has taken measures to promote innovation, encourage entrepreneurship and re-train its workforce.[29] The Ministry of Manpower (Singapore) (MoM) is primarily responsible for setting, adjusting, and enforcing foreign worker immigration rules. There are approximately 243,000 Foreign Domestic Workers (FDWs) in Singapore.[30]

Economy of Singapore
Skyline of the Central Business District of Singapore with Esplanade Bridge
Skyline of Singapore's Central Business District
CurrencySingapore dollar (SGD/S$)
1 April – 31 March
Trade organisations
WTO, APEC, IOR-ARC, ASEAN
Statistics
GDPIncrease $372.807 billion (nominal, 2019 est.)[1]
Increase $589.187 billion (PPP, 2019 est.)[1]
GDP rank36th (nominal, 2018)
36th (PPP, 2018)
GDP growth
2.8% (2016) 3.9% (2017)
3.2% (2018e) 2.3% (2019e)[1]
GDP per capita
Increase $65,627 (nominal, 2019 est.)[1]
Increase $103,717 (PPP, 2019 est.)[1]
GDP per capita rank
7th (nominal, 2018)
3rd (PPP, 2018)
GDP by sector
agriculture: 0%
industry: 24.8%
services: 75.2% (2017 est.)[2]
0.439% (2018 est.)[3]
Population below poverty line
N/A
Negative increase 45.9 medium (2017)[2]
Increase 0.932 very high (2017) (9th)
Labour force
3.661 million (2016 est.)[4]
Labour force by occupation
agriculture: 0.7%
industry: 25.6%
services: 73.7% (2017 est.)[2]
excludes non-residents
UnemploymentPositive decrease 2.1% (2018 est.)[5]
Main industries
2nd (2019)[6]
External
ExportsUS$329.7 billion (2016)[7]
Export goods
Main export partners
ImportsUS$282.9 billion (2016)[7]
Import goods
Main import partners
FDI stock
Increase $1.285 trillion (31 December 2017 est.)[2]
Increase Abroad: $841.4 billion (31 December 2017 est.)[2]
Increase $60.99 billion (2017 est.)[2]
Negative increase $566.1 billion (31 December 2017 est.)[2]
S$738.811 billion (Q1 2015) [8]
Public finances
Negative increase 111.1% of GDP (2017 est.)[2][note 1]
RevenuesS$69.45 billion (2017 est.)[9]
ExpensesS$75.07 billion (2017 est.) [9]
Economic aidNone
Foreign reserves
Increase $279.9 billion (31 December 2017 est.)[2]
Main data source: CIA World Fact Book
All values, unless otherwise stated, are in US dollars.

Economy statistics

Economy statistics (Recent Years) : Year 2011 To Year 2014
Sources:[31][32][33][34][35][36][37][38]
Year GDP
Nominal
(Billion)
GDP
Nominal
Per Capita
GDP Real
(Billion)
GNI
Nominal
(Billion)
GNI
Nominal
Per Capita
Foreign
Reserves
(Billion)
Avg.
Exchange Rate
(1US$ to S$)
2011 US$275.369
S$346.353
US$53,122
S$66,816
S$342.371 US$250.515
S$338.452
S$65,292 US$237.737 S$1.2573
2012 US$289.941
S$362.332
US$54,578
S$68,205
S$354.061 US$273.022
S$351.765
S$66,216 US$259.307 S$1.2498
2013 US$302.245
S$378.200
US$55,979
S$70,047
S$324.592 US$294.692
S$366.618
S$67,902 US$273.065 S$1.2513
2014 US$308.051
S$390.089
US$56,319
S$71,318
S$380.585 US$301.638
S$378.329
S$69,168 US$256.860 S$1.2671
Economy statistics Since Year 1970 To Year 2010
Sources:[39][40][41][42][43][44][45][46]
Year GDP
Nominal
(Billion)
GDP
Nominal
Per Capita
GNI
Nominal
(Billion)
GNI
Nominal
Per Capita
Foreign
Reserves
(Billion)
Avg.
Exchange Rate
(1US$ to S$)
1970 US$1.919
S$5.876
US$925
S$2,832
US$1.937
S$5.932
US$934
S$2,860
US$1.750 N/A
1975 US$5.789
S$13.728
US$2,559
S$6,067
US$5.841
S$13.851
US$2,582
S$6,122
US$3.007 N/A
1980 US$12.078
S$25.863
US$5,004
S$10,714
US$11.899
S$24.536
US$4,747
S$10,165
US$6.571 N/A
1985 US$18.555
S$40.823
US$6,782
S$14,921
US$19.220
S$41.161
US$6,838
S$15,045
US$12.860 S$2.1213
1990 US$38.899
S$70.507
US$12,766
S$23,139
US$36.675
S$69.798
US$12,638
S$22,907
US$27.789 S$1.8125
1995 US$87.891
S$124.575
US$24,937
S$35,346
US$83.220
S$125.475
US$25,117
S$35,601
US$68.819 S$1.4174
2000 US$95.835
S$165.217
US$23,794
S$41,018
US$95.330
S$164.205
US$23,648
S$40,767
US$80.169 S$1.7239
2005 US$127.417
S$212.074
US$29,866
S$49,715
US$121.000
S$198.050
US$27,891
S$46,428
US$116.172 S$1.6646
2010 US$236.420
S$322.361
US$46,569
S$63,498
US$227.377
S$235,076
US$46,305
S$63,137
US$225.754 S$1.3635

Economic history

British Colonization

Singapore's economy was a major beneficiary of colonialism establishing financial and commercial hubs.

1819: Sir Stamford Rafflles a Lieutenant-Governor of Bencoolen (1818–1824), established a post on the southern tip of the Malay Peninsula. Colonization provided the foundation for capitalism in the region. Colonization led Singapore to be the "second richest place in Asia after Japan".[47] Much of the wealth accumulated early within the region was to be accredited to it hosting one of the major seaport hubs.

[48]

1826: Singapore was deemed the capital of the straits settlements, which were territories ruled by the British East India Company

Trade Expansion

New traveling route brings economic opportunity

1869: On 17 November 1869, the Suez Canal opens, connecting the Mediterranean Sea to the Red Sea. This allowed for an increase speed of travel time, which resulted in a rise in trade volume. The nation saw a $32 million dollar rise just a year after its opening.[49]

1879: Trade volume reaches $105 million.

Independence

1950: The region saw social unrest which resulted in colonial powers deciding to relinquish some decision making. With spurs of race riots the colonial powers sought to empower and establish a formidable local government. With most of the unrest resulting from high unemployment, the local government was directed to solve this issue.[47] The economic development board was the official name of the organization designed to create jobs.

1955: A Singapore local legislative Assembly with 25 out of 35 members elected was formed.[50]

1965: Upon independence from Malaysia, Singapore faced a small domestic market, and high levels of unemployment and poverty. 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.

Industrialization Boom & Change

Structural change and machinery propels the economy

1965-1973: Annual growth of real GDP was 12.7%.[51]

1973-1979: Oil crises raised government awareness of economic issues. It slated the government to create a new forum of economic change. The government highlighted a focus in technology and education to be the new wave of economic gain.[52] It managed to minimize inflation and provide workers with the proper machinery to sustain growth.

The Singapore government established the Economic Development Board to spearhead an investment drive, and make Singapore an attractive destination for foreign investment.[53] FDI inflows increased greatly over the following decades, and by 2001 foreign companies accounted for 75% of manufactured output and 85% of manufactured exports. 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.[54][55][56]

Growth in the Service Sector

With Diminishing growth rates, the country again needed to diversify its economy

As a result of this investment drive, Singapore's capital stock increased 33 times by 1992, and achieved a tenfold increase in the capital-labour ratio.[57] Living standards steadily rose, with more families moving from a lower-income status to middle-income security with increased household incomes.

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. Under Lee Singapore had both low inflation and unemployment. However, much unlike the economic policies of Greece and the rest of Europe, Singapore followed a policy of individualising the social safety net. This led to a higher than average savings rate and a very sustainable economy in 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.[58]

1990's: posed a great question for Singapore, as to how they would reinvent their economy. The 1990's emergence of efficient manufacturing firms in southeast Asia challenge the nation with such a small labor force and land restrictions. Friedrich noted how " it would be "unlikely to expand beyond the current 25% share of the economy," when regarding manufacturing firms.[59] Despite struggling in the manufacturing sector Singapore thrived in global finance, trading, and was a industrial hub for international trade.

[60]

Singapore's economic strategy produced real growth averaging 8.0% from 1960 to 1999. Since the nations independence in 1965 Singapore GDP has amassed an average of a 9.5% increase.[61] The economy picked up in 1999 Under Goh Chok Tong, the Prime Minister of Singapore, 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%.

The Nation has made a remarkable recovery from the 2008 global financial crises. In 2010, the nation saw a 15.2% growth rate.[61]

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.

2015 and 2016 saw a downturn for the nation as GDP growth shrunk to just 2 percent. Despite growth diminishing, the nation has yet to post negative growth rates which are a positive sign. During the same period of diminishing economic growth. Unemployment and inflation have also decreased.[61]

As of 2017 Singapore GDP sits at $323.907 Billion.[62]

Singapore is expected to experience an economic slowdown in 2019, with GDP growth slowing to 1.9% from 3.1% in 2018, due to tariff hikes from the United States and China.[63]

State enterprise and investment

Singapore SOE percent of GDP
Singapore's State Owned Enterprises as a percent of GDP

The public sector is used both as an investor and as a catalyst for economic development and innovation. The government of Singapore has two sovereign wealth funds, Temasek Holdings and GIC Private Limited, which are used to manage the country's reserves.[64] Initially the state's role was oriented more toward managing industries for economic development, but in recent decades the objectives of Singapore's sovereign wealth funds have shifted to a commercial basis.[65]

Government-linked corporations play a substantial role in Singapore's domestic economy. As of November 2011, the top six Singapore-listed GLCs accounted for about 17 percent of total capitalization of the Singapore Exchange (SGX). These fully and partially state-owned enterprises operate on a commercial basis and are granted no competitive advantage over privately owned enterprises. State ownership is prominent in strategic sectors of the economy, including telecommunications, media, public transportation, defence, port, airport operations as well as banking, shipping, airline, infrastructure and real estate.[65]

As of 2014, Temasek holds S$69 billion of assets in Singapore, accounting for 7% of the total capitalization of Singapore-listed companies.[66][67]

Sectors

To maintain its competitive position despite rising wages, the government seeks to promote higher value-added activities in the manufacturing and services sectors. It also has opened, or is in the process of opening, the financial services, telecommunications, and power generation and retailing sectors up to foreign service providers and greater competition. The government has also attempted some measures including wage restraint measures and release of unused buildings in an effort to control rising commercial rents with the view to lowering the cost of doing business in Singapore when central business district office rents tripled in 2006.

Banking

Singapore is considered a global financial hub, with Singapore banks offering world-class corporate bank account facilities. In the 2017 Global Financial Centres Index, Singapore was ranked as having the third most competitive financial centre in the world after London and New York City (and alongside cities such as Hong Kong, Tokyo, San Francisco, Chicago, Sydney, Boston, and Toronto).[68] These include multiple currencies, internet banking, telephone banking, checking accounts, savings accounts, debit and credit cards, fixed term deposits and wealth management services.[69] According to the Human Rights Watch, due to its role as a financial hub for the region, Singapore has continually been criticised for reportedly hosting bank accounts containing ill-gotten gains of corrupt leaders and their associates, including billions of dollars of Burma's state gas revenues hidden from national accounts.[70] Singapore has attracted assets formerly held in Swiss banks for several reasons, including new taxes imposed on Swiss accounts and a weakening of Swiss bank secrecy. Credit Suisse, the second largest Swiss bank, moved its head of international private banking to Singapore in 2005.

Tax evasion is illegal in Singapore; however, according to an Organisation for Economic Co-operation and Development official, Singaporean authorities tend to cooperate with other countries' tax authorities only when evasion of Singaporean taxes is involved.

Biotechnology

Singapore is aggressively promoting and developing its biotechnology industry. Hundred of millions of dollars were invested into the sector to build up infrastructure, fund research and development and to recruit top international scientists to Singapore. Leading drug makers, such as GlaxoSmithKline (GSK), Pfizer and Merck & Co., have set up plants in Singapore. On 8 June 2006, GSK announced that it is investing another S$300 million to build another plant to produce paediatric vaccines, its first such facility in Asia.[71] Pharmaceuticals now account for more than 8% of the country's manufacturing production.[72]

Energy and infrastructure

Singapore is the pricing centre and leading oil trading hub in Asia. The oil industry makes up 5 per cent of Singapore's GDP, with Singapore being one of the top three export refining centres in the world. In 2007 it exported 68.1 million tonnes of oil. The oil industry has led to the promotion of the chemical industry as well as oil and gas equipment manufacturing.[73] Singapore has 70 per cent of the world market for both jack-up rigs and for the conversion of Floating Production Storage Offloading units. It has 20 per cent of the world market for ship repair, and in 2008 the marine and offshore industry employed almost 70,000 workers.[74]

Real estate

The Singapore government also owns 90% of the country's land, as well as housing in which 80% of the population lives.[75]

Trade, investment and aid

2006Singaporean exports
Singaporean exports in 2006

Singapore's total trade in 2014 amounted to S$982 billion. Despite its small size, Singapore is currently the fifteenth-largest trading partner of the United States.[76] In 2014, Singapore's imports totaled $464 billion, and exports totalled $519 billion. Malaysia was Singapore's main import source, as well as its largest export market, absorbing 18% of Singapore's exports, with the United States close behind.

Malaysia is Singapore's biggest trading partner, with bilateral trade totalling roughly 91 billion US dollars in 2012, accounting for over a fifth of total trade within ASEAN. Singapore’s trade with major trading partners such as Malaysia, China, Indonesia and South Korea increased in 2012, while trade with EU27, United States, Hong Kong and Japan decreased in 2012. Since 2009, the value of exports exceeds imports for Singapore’s trade with China. In comparison, the value of imports exceeds exports for Singapore’s trade with the US since 2006.[77][78]

Re-exports accounted for 43% of Singapore's total sales to other countries in 2000. Singapore's principal exports are petroleum products, food/beverages, chemicals, textile/garments, electronic components, telecommunication apparatus, and transport equipment. Singapore's main imports are aircraft, crude oil and petroleum products, electronic components, radio and television receivers/parts, motor vehicles, chemicals, food/beverages, iron/steel, and textile yarns/fabrics.

Trade in Singapore has benefited from the extensive network of trade agreements Singapore has passed. According to Healy Consultants, Singapore has free trade access to the entirety of the ASEAN network, with import duty reduced when dealing with Indonesia, Malaysia, the Philippines, Thailand, Brunei, Burma, Cambodia, Laos and Vietnam.

The Singapore Economic Development Board (EDB) continues to attract investment funds on a large-scale for the country despite the city's relatively high-cost operating environment. The US leads in foreign investment, accounting for 40% of new commitments to the manufacturing sector in 2000. As of 1999, cumulative investment for manufacturing and services by American companies in Singapore reached approximately $20 billion (total assets). The bulk of US investment is in electronics manufacturing, oil refining and storage, and the chemical industry. More than 1,500 US firms operate in Singapore.

Singapore's largely corruption-free government, skilled workforce, and advanced and efficient infrastructure have attracted investments from more than 3,000 multinational corporations (MNCs) from the United States, Japan, and Europe. Foreign firms are found in almost all sectors of the economy. MNCs account for more than two-thirds of manufacturing output and direct export sales, although certain services sectors remain dominated by government-linked corporations.

The government also has encouraged firms to invest outside Singapore, with the country's total direct investments abroad reaching $39 billion by the end of 1998. The People's Republic of China was the top destination, accounting for 14% of total overseas investments, followed by Malaysia (10%), Hong Kong (9%), Indonesia (8%) and US (4%). The rapidly growing economy of India, especially the high technology sector, is becoming an expanding source of foreign investment for Singapore. The United States provides no bilateral aid to Singapore, but the US appears keen to improve bilateral trade and signed the US-Singapore Free Trade Agreement. Singapore corporate tax is 17 per cent.[79]

Year Total trade Imports Exports % Change
2000 $273 $135 $138 21%
2001       −9.4%
2002 $432     1.5%
2003 $516 $237 $279 9.6%
2004 $629 $293 $336 21.9%
2005 $716 $333 $383 14%
2006 $810 $379 $431 13.2%
2014 $983 $464 $519 21.3% change from 2006 to 2014

All figures in billions of Singapore dollars.

International trade agreements

Economy Agreement Abbreviation Concluded Signed Effective Legal text
Australia Comprehensive Strategic Partnership CSP 6 May 2016[80] 2015
New Zealand Agreement between New Zealand and Singapore on a Closer Economic Partnership ANZSCEP 18 August 2000 14 November 2000 1 January 2001 [1]
European Free Trade Association Agreement between the EFTA States and Singapore EFTA-Singapore FTA 11 April 2002 26 June 2002 1 January 2003 [2]
Japan Agreement between Japan and the Republic of Singapore for a New-Age Economic Partnership JSEPA October 2001 13 January [3]
United States United States-Singapore Free Trade Agreement USSFTA 19 November 2002 6 May 2003 1 January 2004 [4]
Jordan Singapore Jordan Free Trade Agreement SJFTA 29 April 2004 16 May 2004   [5]
Brunei Trans-Pacific Strategic Economic Partnership Agreement Trans-Pacific SEP   August 2005 1 January 2006 [6]
Chile 18 July 2005
New Zealand 18 July 2005
India India – Singapore Comprehensive Economic Cooperation Agreement India-Singapore CECA November 2004 29 June 2005 1 August 2005 [7]
Korea Korea-Singapore Free Trade Agreement KSFTA 28 November 2004 4 August 2005 End 2005 [8]
Peru Peru-Singapore Free Trade Agreement PesFTA September 2007 29 May 2008 Early 2009
Sri Lanka Sri Lanka-Singapore Free Trade Agreement Sri Lanka-Singapore FTA 2016 23 January 2018 Mid 2018

Singapore workforce

In 2000, Singapore had a workforce of about 2.2 million. With limited access to natural resources, Singapore had been forced to invest in its people. The country has the largest proficiency of English language speakers in Asia, making it an attractive place for multinational corporations. Singapore has come along way from where it once stood. In the 1970's according to Tilak Abeysinghe "2.4 percent of the labor force were degree holders" By 1990 the number rose to just 6.3%. In 2013 the number of labor force who hold degrees has amassed to 31%. The nations directive toward high skilled labor jobs, has promoted both growth and education to the region.[81] The National Trades Union Congress (NTUC), the sole trade union federation which has a symbiotic relationship with the ruling party, comprises almost 99% of total organised labour. Government policy and pro-activity rather than labour legislation controls general labour and trade union matters.[citation needed]

The Employment Act offers little protection to white-collar workers due to an income threshold. The Industrial Arbitration Court handles labour-management disputes that cannot be resolved informally through the Ministry of Manpower. The Singapore Government has stressed the importance of co-operation between unions, management and government (tripartism), as well as the early resolution of disputes. There has been only one strike in the past 15 years.

Singapore has enjoyed virtually full employment for long periods of time. Amid an economic slump, the unemployment rate rose to 4.0% by the end of 2001, from 2.4% early in the year. Unemployment has since declined and as of 2012 the unemployment rate stands at 1.9%.[82]

While the Singapore government has taken a stance against minimum wage and unemployment benefit schemes, in 2007 the government introduced a Workfare Income Supplement (WIS) scheme to supplement wages of low-skilled workers.[83] In order to support employers in hiring older Singaporean workers, Special Employment Credit (SEC) was introduced in 2011. It was first enhanced in 2012 to provide employers with support in hiring older Singaporean workers and Persons with Disabilities (PWDs). It helped the employers to cope with costs associated with the increase in Central Provident Fund (CPF) contribution rates for older workers. The 5 year SEC scheme was further extended to additional 3 years, up to 2019 to encourage employers to voluntarily re-employ older workers aged 65 and above.[84]

The Singapore Government and the NTUC have tried a range of programs to increase lagging productivity and boost the labour force participation rates of women and older workers. However, labour shortages persist in the service sector and in many low-skilled positions in the construction and electronics industries. Foreign workers help make up this shortfall. In 2000, there were about 600,000 foreign workers in Singapore, constituting 27% of the total work force. As a result, wages are relatively suppressed or do not rise for all workers. To have some controls, the government imposes a foreign worker levy payable by employers for low end workers like domestic help and construction workers.[85] In 2012, the Ministry of Trade and Industry (MTI) reported that Singapore should continue to fine-tune the calibration of its inflow of foreigners as the country continues to face an ageing population and a shrinking workforce. Singapore Parliament accepted the recommendations by its Economic Strategies Committee (ESC) for the optimal ratio of the level of immigration and foreign manpower for both high and low skilled workers.[86] The Government recognises that the current overall foreign workforce should complement the local resident workforce and not replace the Singaporean Core concept, and helps companies greatly as they raise productivity through business restructuring and workforce retraining; raise resident labour force participation rate.[87][88]

Poverty and economic inequality

Singapore is one of the world’s wealthiest countries per capita, but its Gini coefficient is high in comparison to developed countries. Statistics on income inequality are published by the Singapore Department of Statistics.[89]

In October 2018, Oxfam ranked Singapore 149 out of 157 in its Commitment to Reducing Inequality Index 2018, placing it among the bottom ten of the countries in the index, which ranks countries based on efforts to reduce economic inequality.[90] In its report, Oxfam accused Singapore of practices which encouraged "harmful tax practices", not having a universal minimum wage (apart from janitors and security guards), and poor performance on labour rights.[91] The government responded to the report by claiming that it was more important to look at "real outcomes" such as Singapore's high home ownership, health, education, and employment, rather than public spending or tax rates, also saying that the report "assumes that high taxation and high public expenditure reflects commitment to combating inequality".[90]

The government provides social support through a variety of social assistance schemes. The Ministry of Social and Family Development runs ComCare, a program which provides income support for low-income citizen households through various schemes for short-to-medium term assistance, long-term assistance, child support, and urgent financial needs.[92] The Community Development Councils also run various local assistance schemes within their districts.[93] The Ministry of Manpower runs a Silver Support Scheme which provides additional financial support for low-income elderly with no family support.[94] Meanwhile, the Ministry of Health also runs MediFund to assist families that have difficulty paying for medical bills despite government subsidies and other health financing schemes.[95] In addition, the National Council of Social Service coordinates a range of 450 non-government voluntary welfare organisations to provide social services, while raising funds through The Community Chest of Singapore.[96]

Today low and middle-income groups now receive 2.5 times the public subsidies they did ten years ago [97].

Public finance

Government spending in Singapore has risen since the start of the global financial crisis, from around 15% of GDP in 2008 to 17% in 2012. The government's total expenditure as a percentage of GDP ranks among the lowest internationally and allows for a competitive tax regime.[98][99] Singapore is required under its constitution to keep a balanced budget over each term of government. Singapore government debt is issued for investment purposes, not to fund expenditure.[100][101][102]

Personal income taxes in Singapore range from 0% to 22% for incomes above S$320,000.[103] There are no capital gains or inheritance taxes in Singapore.[104][105] Singapore's corporate tax rate is 17% with exemptions and incentives for smaller businesses. Singapore has a single-tier corporate income tax system, which means there is no double-taxation for shareholders.[106]

Singapore introduced Goods and Services Tax (GST) with an initial rate of 3% on 1 April 1994, increasing government's revenue by S$1.6 billion (US$1b, €800m) and establishing government finances.[107] The taxable GST was increased to 4% in 2003, to 5% in 2004, and to 7% in 2007.[108]

The Singapore government runs two investment companies, GIC Private Limited and Temasek Holdings, which manage Singapore's reserves. Both operate as commercial investment holding companies independently of the Singapore government, but Prime Minister Lee Hsien Loong and his wife Ho Ching serve as chairman and CEO of these corporations respectively.[109][110][111] While GIC invests abroad, Temasek holds 31% of its portfolio in Singapore, holding majority stakes in several of the nation's largest companies, such as Singapore Airlines, SingTel, ST Engineering and MediaCorp.[66] As of 2014, Temasek holds S$69 billion of assets in Singapore, accounting for 7% of the total capitalisation of Singapore-listed companies.[66][67]

In April 2013, the country was recognised as an increasingly popular tax haven for the wealthy due to the low tax rate on personal income, a full tax exemption on income that is generated outside of Singapore and 69 double taxation treaties[69] that can minimise both withholding tax and capital gains tax. Australian millionaire retailer Brett Blundy, with an estimated personal wealth worth AU$835 million, and multi-billionaire Facebook co-founder Eduardo Saverin are two examples of wealthy individuals who have settled in Singapore (Blundy in 2013 and Saverin in 2012). Additionally, Australian mining magnate Gina Rinehart owns property in Singapore[112] and American investor Jim Rogers moved to Singapore in 2007—Rogers has identified the 21st century as an era in which Asia will dominate and wishes for his two daughters to learn Mandarin as a key outcome of the relocation.[113][114] Chinese Media TV celebrities Jet Li and Gong Li have also taken up naturalised Singapore citizenship.[115][116]

Monetary policy

The Monetary Authority of Singapore is Singapore's central bank and financial regulatory authority. It administers the various statutes pertaining to money, banking, insurance, securities and the financial sector in general, as well as currency issuance. The MAS has been given powers to act as a banker to and financial agent of the Government. It has also been entrusted to promote monetary stability, and credit and exchange policies conducive to the growth of the economy.

Unlike many other central banks such as Federal Reserve System or Bank of England, MAS does not regulate the monetary system via interest rates to influence the liquidity in the system. Instead, it chooses to do it via the foreign exchange mechanism. It does so by intervening in the SGD market.[117]

Mergers and acquisitions

16,156 mergers and acquisitions deals have been conducted in Singapore so far, which accumulated to a total value of 850. bil. USD. Since 1985 there has been a constant upward trend, disrupted only in 2002 and 2009.[118] The most active year in terms of numbers (926) and value (78. bil. USD) has been 2017, so there is currently an all time high. In general inbound and outbound deals in Singapore are nearly equally distributed.

Here is a list of the top 10 deals with Singaporean participation inbound or outbound:

  Date Announced Acquiror Name Acquiror Mid Industry Acquiror Nation Target Name Target Mid Industry Target Nation Value of Transaction ($mil)
02/01/2008 Shining Prospect Pte Ltd Other Financials Singapore Rio Tinto PLC Metals & Mining United Kingdom 14,284.17
07/09/2015 Petrol Complex Pte Ltd Oil & Gas Singapore Essar Oil Ltd Oil & Gas India 12,907.25
07/14/2017 Nesta Investment Holdings Ltd Other Financials China Global Logistic Properties Ltd Non Residential Singapore 11,553.58
12/10/2016 QHG Shares Pte Ltd Other Financials Singapore Rosneft Oil Co Oil & Gas Russian Fed 10,776.55
12/10/2007 Government of Singapore Invest Alternative Financial Investments Singapore UBS AG Banks Switzerland 9,760.42
03/26/2001 Singapore Telecommunications Wireless Singapore Cable & Wireless Optus Lt Telecommunications Services Australia 8,491.12
12/01/2014 Investor Group Other Financials Singapore IndCor Properties Inc REITs United States 8,100.00
03/30/2007 Investor Group Other Financials Singapore Alinta Ltd Oil & Gas Australia 7,500.98
09/13/2012 TCC Assets Ltd Other Financials British Virgin Fraser & Neave Ltd Food and Beverage Singapore 6,896.48
01/15/2008 Government of Singapore Invest Alternative Financial Investments Singapore Citigroup Inc Banks United States 6,880.00

Facts and figures

Percentage of economic growth: 1.7% (2016)[119]

Industrial production growth rate: 1% (2016 est.)

Electricity – production by source:
fossil fuel: 95.3%
hydro: 0%
nuclear: 0%
other: 3.9% (2014 est.)

Electricity – consumption: 47.5 TWh (2016)

Electricity – exports: 0 kWh (2007)

Electricity – imports: 0 kWh (2007)

Agriculture – products: rubber, copra, fruit, vegetables; poultry, eggs, fish, orchids, ornamental fish

Currency: 1 Singapore dollar (S$ or SGD) = 100 cents

Exchange rates: [120]

Year Singapore Dollars per US$1
1981 2.0530
1985 2.1213
1990 1.7275
1995 1.4148
2000 1.7361
2005 1.6738
2011 1.2573
2012 1.2498
2013 1.2513
2014 1.2671
2015 1.3748
2016 1.379

See also

Notes

  1. ^ Singapore's public debt consists largely of Singapore Government Securities (SGS) issued to assist the Central Provident Fund (CPF), which administers Singapore's defined contribution pension fund; special issues of SGS are held by the CPF, and are non-tradable; the government has not borrowed to finance deficit expenditures since the 1980s; Singapore has no external public debt

References

  1. ^ a b c d e "World Economic Outlook Database, April 2019 – Report for Selected Countries and Subjects". International Monetary Fund (IMF). Retrieved 28 May 2019.
  2. ^ a b c d e f g h i "The World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 6 April 2019.
  3. ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. 27 April 2019.
  4. ^ "Singapore Employment Labour as at June 2015". Department Of Statistics Singapore. 2015. Archived from the original on 29 November 2015. Retrieved 16 September 2015.
  5. ^ "Summary Table: Unemployment". Ministry of Manpower (Singapore). Retrieved 30 May 2019.
  6. ^ "Ease of Doing Business in Singapore". Doingbusiness.org. Retrieved 24 November 2017.
  7. ^ a b c d "Singapore - WTO Statistics Database". World Trade Organization. Retrieved 1 March 2017.
  8. ^ "Net international investment position as at Q1 2015". Department Of Statistics Singapore. 2015. Archived from the original on 1 May 2016. Retrieved 16 September 2015.
  9. ^ a b "Operating Revenue and Total Expenditure as at 2017 estimate" (PDF). Singapore Budget 2017. 20 February 2017. Retrieved 23 February 2017.
  10. ^ "Sovereigns rating list". Standard & Poor's. Retrieved 26 May 2011.
  11. ^ a b c Rogers, Simon; Sedghi, Ami (15 April 2011). "How Fitch, Moody's and S&P rate each country's credit rating". The Guardian. Retrieved 28 May 2011.
  12. ^ Central Intelligence Agency (6 August 2012). "The World Factbook". cia.gov. Retrieved 13 August 2012.
  13. ^ Ministry of Trade and Industry Singapore. "Free Market System". mti.gov.sg. Archived from the original on 7 October 2015. Retrieved 11 December 2018.
  14. ^ World Economic Forum. "Global Enabling Trade Report" (PDF). Archived from the original (PDF) on 29 July 2012.
  15. ^ "Corruption Perceptions Index 2018 Executive Summary p. 8" (PDF). transparency.org. Transparency International. Retrieved 27 April 2019.
  16. ^ "World Bank Doing Business Report 2012". World Bank.
  17. ^ "Country Rankings". 2013 Index of Economic Freedom. The Heritage Foundation. 2013. Retrieved 18 April 2013.
  18. ^ "Archived copy" (PDF). Archived from the original (PDF) on 21 October 2012. Retrieved 2013-06-01.CS1 maint: Archived copy as title (link)
  19. ^ Aun Long, Jek; Danny Tan (June 2010). "The growth of the private wealth management industry in Singapore and Hong Kong" (PDF). Capital Markets Law Journal. 6 (1): 104–126. doi:10.1093/cmlj/kmq022. Retrieved 18 April 2013.
  20. ^ Neil Chatterjee; John O'Donnell (14 November 2008). "Wealth management prospers in Singapore". The New York Times. Retrieved 18 April 2013.
  21. ^ "Wealth Management". UBS. 3 April 2013. Retrieved 18 April 2013.
  22. ^ Jorn Madslien (6 May 2008). "Singapore water makes global waves". BBC News. Retrieved 18 April 2013.
  23. ^ Shim Kim Fah (1990). "Part IV Country Papers (Contd.)". FAO Corporate Document Repository. Agriculture and Consumer Protection. Retrieved 18 April 2013.
  24. ^ "Agrotechnology Parks". Agri-Food & Veterinary Authority of Singapore. Government of Singapore. 14 November 2012. Archived from the original on 22 January 2013. Retrieved 18 April 2013.
  25. ^ Brenda S.A. Yeoh; Weiqiang Lin (April 2012). "Rapid Growth in Singapore's Immigrant Population Brings Policy Challenges". Migration Policy Institute. Migration Policy Institute. Retrieved 18 April 2013.
  26. ^ "Archived copy". Archived from the original on 13 July 2014. Retrieved 2015-03-25.CS1 maint: Archived copy as title (link)
  27. ^ "WTO Trade Policy Review: Singapore". WTO.
  28. ^ "Trade (% of GDP)". World Bank.
  29. ^ "Singapore Ranked Best for Business". InvestAsian. InvestAsian. 2015. Archived from the original on 23 June 2015. Retrieved 27 May 2015.
  30. ^ "Foreign workforce numbers". Ministry of Manpower Singapore.
  31. ^ "Gross Domestic Product (US$)". World Bank. Retrieved 18 September 2015.
  32. ^ "Gross Domestic Product (S$)". International Monetary Fund. Retrieved 18 September 2015.
  33. ^ "Gross Domestic Product Per Capita (US$)". World Bank. Retrieved 18 September 2015.
  34. ^ "Gross Domestic Product Per Capita (S$)". Department of Statistics, Singapore. Archived from the original on 7 August 2015. Retrieved 18 September 2015.
  35. ^ "Gross National Income (US$)". World Bank. Retrieved 18 September 2015.
  36. ^ "Foreign Reserves". Monetary Authority Of Singapore. Retrieved 18 September 2015.
  37. ^ "Exchange Rates". Department Of Statistics Singapore. Archived from the original on 27 September 2015. Retrieved 18 September 2015.
  38. ^ "Real Gross Domestic Product (S$), Gross National Income (S$), GNI Per Capita (S$)" (PDF). Department Of Statistics Singapore. Archived from the original (PDF) on 10 September 2015. Retrieved 18 September 2015.
  39. ^ "Gross Domestic Product (US$)". World Bank. Retrieved 20 September 2015.
  40. ^ "Gross Domestic Product (S$)". Department of Statistics, Singapore. Archived from the original on 13 November 2015. Retrieved 20 September 2015.
  41. ^ "GDP Per Capita (S$ & US$)". Department of Statistics, Singapore. Archived from the original on 7 August 2015. Retrieved 20 September 2015.
  42. ^ "Gross National Income (US$)". World Bank. Retrieved 20 September 2015.
  43. ^ "Gross National Income (S$)". Department of Statistics, Singapore. Archived from the original on 13 November 2015. Retrieved 20 September 2015.
  44. ^ "Gross National Income Per Capita (S$ & US$)". Department of Statistics, Singapore. Archived from the original on 13 November 2015. Retrieved 20 September 2015.
  45. ^ "Foreign Reserves". Monetary Authority Of Singapore. Retrieved 20 September 2015.
  46. ^ "Exchange Rates". Department of Statistics, Singapore. Archived from the original on 27 September 2015. Retrieved 20 September 2015.
  47. ^ a b Lim, Linda Y. C. (August 2015). "Fifty Years of Development in the Singapore Economy: An Introductory Review". The Singapore Economic Review. 60 (3): 1502002. doi:10.1142/S0217590815020026. ISSN 0217-5908.
  48. ^ "Singapore profile". 10 May 2018. Retrieved 17 March 2019.
  49. ^ "Opening of the Suez Canal - Singapore History". eresources.nlb.gov.sg. Retrieved 17 March 2019.
  50. ^ Chung, Ong Chit (1975). "The 1959 Singapore General Election". Journal of Southeast Asian Studies. 6 (1): 61–86. doi:10.1017/S0022463400017112. ISSN 0022-4634. JSTOR 20070113.
  51. ^ Hays, Jeffrey. "ECONOMIC HISTORY OF SINGAPORE | Facts and Details". factsanddetails.com. Retrieved 18 March 2019.
  52. ^ "Brief History of Singapore, Singapore Growth & Economy • About Singapore". www.singaporeexpats.com. Retrieved 10 March 2019.
  53. ^ "Columbia Center on Sustainable Investment" (PDF). Retrieved 4 March 2015.
  54. ^ Sugimoto, Ichiro (2011). Economic Growth of Singapore in the Twentieth Century. p. 299. ISBN 978-9814317917.
  55. ^ "The familiar pattern of Chinese consumption growth". Archived from the original on 3 December 2013. Retrieved 4 March 2015.
  56. ^ "Wage share of GDP has risen over the decades: Minister for Trade and Industry". Retrieved 4 March 2015.
  57. ^ Bercuson, Kenneth (1995). Singapore: a Case Study in Rapid Development. p. 5. ISBN 978-1557754639.
  58. ^ Driven by Growth: Political Change in the Asia-Pacific Region edited by James W. Morley
  59. ^ Wu, Friedrich (October 1991). "The ASEAN Economies in the 1990s and Singapore's Regional Role". California Management Review. 34 (1): 103–114. doi:10.2307/41166686. ISSN 0008-1256. JSTOR 41166686.
  60. ^ "How Singapore Became One Of The Richest Places On Earth". NPR.org. Retrieved 10 March 2019.
  61. ^ a b c Chen, Xiaoping; Shao, Yuchen (11 September 2017). "Trade policies for a small open economy: The case of Singapore". The World Economy. doi:10.1111/twec.12555. ISSN 0378-5920.
  62. ^ "GDP (current US$) | Data". data.worldbank.org. Retrieved 2 May 2019.
  63. ^ "Singapore to see sharpest slowdown in South-east Asia this year with 1.9% GDP growth: Report". The Straits Times. Retrieved 4 June 2019.
  64. ^ "What comprises the reserves and who manages them?". Singapore Ministry of Finance. Archived from the original on 14 July 2014. Retrieved 22 April 2014.
  65. ^ a b Bureau of Economic and Business Affairs (June 2012). "2012 Investment Climate Statement – Singapore". United States Department of State. Retrieved 10 March 2014.
  66. ^ a b c "Portfolio Highlights". Temasek Holdings. Archived from the original on 9 May 2015.
  67. ^ a b Statistical Report, March 2014 (Report). Singapore Exchange.
  68. ^ "The Global Financial Centres Index 21" (PDF). Long Finance. March 2017. Archived from the original (PDF) on 11 June 2017.
  69. ^ a b "Singapore Company Registration and Formation". Healy Consultants. Retrieved 19 August 2013.
  70. ^ "World Report" (PDF). Human Rights Watch. 2011. Archived from the original (PDF) on 13 October 2012. Retrieved 18 April 2013.
  71. ^ "GlaxoSmithKline Vaccine Manufacturing Facility, Tuas, Singapore". pharmaceutical-technology.com. SPG Media Limited. 2012. Retrieved 18 April 2013.
  72. ^ "Economic Survey of Singapore 2012" (PDF).
  73. ^ "Facts and Figures". Singapore Government. 11 November 2010. Retrieved 13 July 2011.
  74. ^ "Facts and Figures". Singapore Government. 13 October 2009. Archived from the original on 18 April 2012. Retrieved 13 July 2011.
  75. ^ "How Capitalist Is Singapore Really?".
  76. ^ "Top Trading Partners – Total Trade, Exports, Imports". United States Census Bureau. United States Census Bureau. 12 July 2011. Retrieved 18 April 2013.
  77. ^ "Archived copy". Archived from the original on 19 October 2014. Retrieved 2014-10-26.CS1 maint: Archived copy as title (link)
  78. ^ "Archived copy". Archived from the original on 21 October 2014. Retrieved 2014-10-13.CS1 maint: Archived copy as title (link)
  79. ^ "Corporate Taxation in Singapore". ASEAN Business News. 15 August 2018. Retrieved 24 February 2019.
  80. ^ Leong, John. "Singapore, Australia conclude discussions on Comprehensive Strategic Partnership". Channel NewsAsia. Retrieved 31 October 2016.
  81. ^ Abeysinghe, Tilak (28 December 2015), "Lessons of Singapore's Development for Other Developing Economies", Singapore's Economic Development, WORLD SCIENTIFIC, pp. 35–49, doi:10.1142/9789814723473_0003, ISBN 9789814723459
  82. ^ http://www.channelnewsasia.com/stories/singaporelocalnews/view/1234476/1/.html
  83. ^ "Workfare". Ministry of Manpower. Government of Singapore. 18 March 2013. Archived from the original on 1 April 2013. Retrieved 18 April 2013.
  84. ^ "Special Employment Credit (SEC) Guide". singaporeaccounting.com. Retrieved 31 August 2016.
  85. ^ "Aesperon – 2015 Changes To Foreign Worker Levies". Aesperon – BCA CoreTrade & Levy Benefits. Archived from the original on 11 August 2015. Retrieved 1 May 2015.
  86. ^ "Singapore Economic Development Board – Investing Business in Singapore". Retrieved 4 March 2015.
  87. ^ "Home". Retrieved 4 March 2015.
  88. ^ "WDA". Retrieved 4 March 2015.
  89. ^ "Household Income - Latest Data". singstat.gov.sg. Singapore Department of Statistics. Retrieved 15 October 2018.
  90. ^ a b "Singapore in bottom 10 of Oxfam index on efforts to tackle inequality". Channel NewsAsia. 9 October 2018. Retrieved 15 October 2018.
  91. ^ http://www.asiaone.com/singapore/singapore-bottom-10-countries-tackling-inequality-oxfam-index
  92. ^ "ComCare". msf.gov.sg. Ministry of Social and Family Development. Retrieved 15 October 2018.
  93. ^ "Getting help". cdc.org.sg. People's Association. Retrieved 15 October 2018.
  94. ^ "Silver Support Scheme". mom.gov.sg. Ministry of Manpower. Retrieved 15 October 2018.
  95. ^ "MediFund". moh.gov.sg. Ministry of Health. Retrieved 15 October 2018.
  96. ^ "Our Organisation". ncss.gov.sg. National Council of Social Service. Retrieved 15 October 2018.
  97. ^ Rodan, Garry (23 March 2016). "Capitalism, Inequality and Ideology in Singapore: New Challenges for the Ruling Party". Asian Studies Review. 40 (2): 211–230. doi:10.1080/10357823.2016.1155536. ISSN 1035-7823.
  98. ^ http://www.channelnewsasia.com/stories/singaporelocalnews/view/384172/1/.html
  99. ^ "Singapore". 2013 Index of Economic Freedom. The Heritage Foundation. 2013. Retrieved 18 April 2013.
  100. ^ http://www.oecd.org/gov/budgeting/40140241.pdf
  101. ^ "Archived copy". Archived from the original on 12 May 2014. Retrieved 2015-06-16.CS1 maint: Archived copy as title (link)
  102. ^ "Singapore Economy 2012 – A Brief Introduction – GuideMeSingapore.com". guidemesingapore.com. Retrieved 15 September 2015.
  103. ^ "Income Tax Rates". Inland Revenue Authority of Singapore. Retrieved 25 June 2018.
  104. ^ "Individuals (For locals)". Inland Revenue Authority of Singapore. Inland Revenue Authority of Singapore. 10 April 2013. Retrieved 18 April 2013.
  105. ^ "Singapore Personal Income Tax Guide". Guide Me Singapore. Janus Corporate Solutions Pte Ltd. 2008–2013. Retrieved 18 April 2013.
  106. ^ "Singapore Corporate Tax Guide". Guide Me Singapore. Janus Corporate Solutions Pte Ltd. 2008–2013. Retrieved 18 April 2013.
  107. ^ "FY 1996 Budget, Revenue And Tax Changes". Ministry of Finance. Retrieved 1 May 2006.
  108. ^ "GST rate to rise to 7% from 1 July". Channel NewsAsia. Singapore. 15 February 2007. Archived from the original on 26 May 2012. Retrieved 22 April 2010.
  109. ^ "What is the relationship between GIC and the Government?". Government of Singapore Investment Corporation. Archived from the original on 20 October 2012.
  110. ^ "Is Temasek a statutory board or a government agency?". Temasek Holdings.
  111. ^ "Govt's role relating to Temasek Holdings, GIC clarified". Channel NewsAsia. Retrieved 4 March 2015.
  112. ^ Andrew Heathcote (15 April 2013). "Tax havens: Brett Blundy latest to join the Singapore set". Business Review Weekly. Digital Media. Archived from the original on 14 April 2013. Retrieved 18 April 2013.
  113. ^ Lauren Lyster (5 February 2013). "Jim Rogers: 4200% Investing Returns Are Still Possible". Yahoo! Finance. Yahoo!, Inc. Retrieved 22 April 2013.
  114. ^ Vincent Fernando, CFA (20 August 2010). "Jim Rogers: If You Want Your Family To Be Silly Rich In The Future, Then Leave America And Move To Asia Now". Business Insider. Business Insider, Inc. Retrieved 22 April 2013.
  115. ^ Jet Li
  116. ^ Gong Li
  117. ^ "Singapore's Exchange Rate-Based Monetary Policy". Monetary Authority of Singapore. Monetary Authority of Singapore. 2013. Retrieved 18 April 2013.
  118. ^ "M&A Statistics - Worldwide, Regions, Industries & Countries". Institute for Mergers, Acquisitions and Alliances (IMAA). Retrieved 23 February 2018.
  119. ^ "The World Factbook — Central Intelligence Agency". www.cia.gov. Retrieved 7 March 2017.
  120. ^ "Exchange Rate (S$/US$)". Department Of Statistics Singapore. 2015. Archived from the original on 27 September 2015. Retrieved 15 September 2015.

External links

1997 Asian financial crisis

The Asian financial crisis was a period of financial crisis that gripped much of East and Southeast Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion.

The crisis started in Thailand (known in Thailand as the Tom Yum Goong crisis; Thai: วิกฤตต้มยำกุ้ง) with the financial collapse of the Thai baht after the Thai government was forced to float the baht due to lack of foreign currency to support its currency peg to the U.S. dollar. Capital flight ensued, beginning an international chain reaction. At the time, Thailand had acquired a burden of foreign debt that made the country effectively bankrupt even before the collapse of its currency. As the crisis spread, most of Southeast Asia and Japan saw slumping currencies, devalued stock markets and other asset prices, and a precipitous rise in private debt.Indonesia, South Korea, and Thailand were the countries most affected by the crisis. Hong Kong, Laos, Malaysia and the Philippines were also hurt by the slump. Brunei, China, Singapore, Taiwan, and Vietnam were less affected, although all suffered from a loss of demand and confidence throughout the region. Japan was also affected, though less significantly.

Foreign debt-to-GDP ratios rose from 100% to 167% in the four large Association of Southeast Asian Nations (ASEAN) economies in 1993–96, then shot up beyond 180% during the worst of the crisis. In South Korea, the ratios rose from 13% to 21% and then as high as 40%, while the other northern newly industrialized countries fared much better. Only in Thailand and South Korea did debt service-to-exports ratios rise.Although most of the governments of Asia had seemingly sound fiscal policies, the International Monetary Fund (IMF) stepped in to initiate a $40 billion program to stabilize the currencies of South Korea, Thailand, and Indonesia, economies particularly hard hit by the crisis. The efforts to stem a global economic crisis did little to stabilize the domestic situation in Indonesia, however. After 30 years in power, Indonesian President Suharto was forced to step down on 21 May 1998 in the wake of widespread rioting that followed sharp price increases caused by a drastic devaluation of the rupiah. The effects of the crisis lingered through 1998. In 1998, growth in the Philippines dropped to virtually zero. Only Singapore and Taiwan proved relatively insulated from the shock, but both suffered serious hits in passing, the former due to its size and geographical location between Malaysia and Indonesia. By 1999, however, analysts saw signs that the economies of Asia were beginning to recover. After the crisis, economies in the region worked toward financial stability and better financial supervision.Until 1999, Asia attracted almost half of the total capital inflow into developing countries. The economies of Southeast Asia in particular maintained high interest rates attractive to foreign investors looking for a high rate of return. As a result, the region's economies received a large inflow of money and experienced a dramatic run-up in asset prices. At the same time, the regional economies of Thailand, Malaysia, Indonesia, Singapore and South Korea experienced high growth rates, of 8–12% GDP, in the late 1980s and early 1990s. This achievement was widely acclaimed by financial institutions including IMF and World Bank, and was known as part of the "Asian economic miracle".

ASEAN–China Free Trade Area

The ASEAN–China Free Trade Area (ACFTA), also known as China–ASEAN Free Trade Area is a free trade area among the ten member states of the Association of Southeast Asian Nations (ASEAN) and the People's Republic of China.

Aviation in Singapore

Aviation in Singapore is a key component of the Singaporean economy in its quest to be a transport hub of the Asian region. Besides currently the sixth busiest airport and the fourth busiest air cargo hub in Asia, the Singaporean aviation industry is also a significant aerospace maintenance, repair and overhaul centre.

The aviation industry is a significant contributor to the Singapore economy. In 2009, it contributed S$14.2 billion (5.4%) in direct and in-direct value-add to the Singaporean GDP. This included S$8.7 billion of direct contribution from the sector, S$3.1 billion through indirect contributions from the sector's supply chain and S$2.4 billion from consumer spending by employees of the aviation sector and its supply chain. 58,000 direct jobs were available in the industry, rising to 119,000 jobs if the entire supply chain is included. Out of the 58,000 direct jobs, aerospace manufacturing companies employed approximately 18,000 people, airline companies employed 15,000, while 24,000 worked in the airports and ground service companies. The sector also directly contributed S$1.5 billion in taxes in 2009.

Airlines registered in Singapore were also major contributors to the economy, employing over 15,000 in Singapore and providing a further 11,000 jobs in the supply chain in 2009. Overall, these airlines contribute over S$5.5 billion to the economy and supported 34,000 jobs in Singapore.

Economic Development Board

The Economic Development Board (EDB, Chinese: 经济发展局) is a statutory board of the Government of Singapore that plans and executes strategies to sustain Singapore as a leading global hub for business and investment.

Enterprise Singapore

Enterprise Singapore (Abbreviation: ESG; Chinese: 新加坡企业发展局) is a statutory board under the Ministry of Trade and Industry (MTI) in Singapore. It was formed on 1 April 2018 to support Singapore small and medium enterprise (SMEs) development, upgrade capabilities, innovate, transform, and internationalise. It also supports the growth of Singapore as a trading and startup hub, and continues to be the national standards and accreditation body.

European Union–Singapore Free Trade Agreement

The EU-Singapore Free Trade Agreement, acronym EUSFTA, is a signed and ratified free trade and bilateral investment treaty between the European Union and Singapore. EUSFTA has been negotiated since March 2010 and its text has been publicly accessible since June 2015. The negotiations on goods and services were completed in 2012, on investment protection on October 17, 2014.The agreement is expected to be the first free trade agreement with a member of the Association of Southeast Asian Nations and the third agreement with an Asian country after South Korea and Japan from an EU perspective.

In October 19, 2018, three agreements were signed between the parties, the EU-Singapore Trade Agreement, the EU-Singapore Investment Protection Agreement and the Framework Agreement on Partnership and Cooperation.

Four Asian Tigers

The Four Asian Tigers, Four Asian Dragons or Four Little Dragons, are the economies of Hong Kong, Singapore, South Korea and Taiwan, which underwent rapid industrialization and maintained exceptionally high growth rates (in excess of 7 percent a year) between the early 1960s (mid-1950s for Hong Kong) and 1990s. By the early 21st century, all four had developed into high-income economies, specializing in areas of competitive advantage. Hong Kong and Singapore have become world-leading international financial centres, whereas South Korea and Taiwan are world leaders in manufacturing electronic components and devices. Their economic success stories have served as role models for many developing countries, especially the Tiger Cub Economies of southeast Asia.A controversial World Bank report (The East Asian Miracle 1993) credited neoliberal policies with the responsibility for the boom, including maintenance of export-oriented policies, low taxes, and minimal welfare states; institutional analysis also states some state intervention was involved. However, others argued that industrial policy and state intervention had a much greater influence than the World Bank report suggested.

Indonesia–Malaysia–Singapore Growth Triangle

The Sijori was established in 1994 between three countries, Indonesia, Malaysia and Singapore, to strengthen economic links in the region and optimise the complementarity between the three countries. It started off as the SIJORI Growth Triangle in 1989, which includes Singapore, Johor (in Malaysia), and a part of Riau Islands Province (in Indonesia), specifically the Riau Archipelago.

List of Singaporeans by net worth

This is a list of Singaporean billionaires based on an annual assessment of wealth and assets compiled and published by Forbes magazine in 2017.

Most of them are businessmen. Most of them got their wealth from the real estate industry.

Population White Paper

A Sustainable Population for a Dynamic Singapore: Population White Paper (Chinese: 人口白皮书), or simply known as the Population White Paper (PWP), is a controversial white paper released by the government of Singapore in January 2013 that projects Singapore's population as 6.9 million by the year 2030.

Progressive wage

The Progressive Wage Model (PWM) is a wage structure advocated by the labour movement of Singapore, which is led by the National Trades Union Congress (NTUC), the sole national trade union centre in Singapore. The objective of introducing the Progressive Wage Model is to increase the salaries of workers through the enhancement of skills and improving productivity. Progressive Wage is enforced via business licensing (as opposed to legislation). This model was designed to enable rank and file workers to climb the wage ladder, and provides for a minimum wage. This would then lead to higher wages for the worker and improved overall productivity which helps sustain economic growth.

Revenue stamps of Singapore

Singapore issued revenue stamps from 1948 to 1999. There were various types of fiscal stamps for different taxes.

S chip

S chips (Chinese: S股) are Chinese companies listed on the Singapore Exchange. Their shares are known as S shares. S chips are incorporated in Singapore, the British Virgin Islands, the Cayman Islands and Bermuda and have their business operations in mainland China.

Some S chips were beset by corporate governance and accounting problems, resulting in reputational issues that led to share price declines in 2009. The main difference between S chips and P chips is the exchange on which they are traded.

An index that covers the prices of S-Chips is the FTSE ST China Index. From January 2008 to October 2009, the FTSE ST China Index had a return of −60%, as opposed to a return of −20% for the Hang Seng China Enterprises Index, which covers the prices of H shares.

Singapore Exchange

Singapore Exchange Limited (SGX, SGX: S68) is an investment holding company located in Singapore and provides different services related to securities and derivatives trading and others. SGX is a member of the World Federation of Exchanges and the Asian and Oceanian Stock Exchanges Federation.

Singapore issues

The "Singapore issues" refers to four working groups set up during the World Trade Organization Ministerial Conference of 1996 in Singapore. These groups are tasked with these issues: transparency in government procurement, trade facilitation (customs issues), trade and investment, and trade and competition. These issues were pushed at successive Ministerials by the European Union, Japan and Korea, and opposed by most developing countries. The United States was lukewarm about the inclusion of these issues, indicating that it could accept some or all of them at various times, but preferring to focus on market access. Disagreements between largely developed and developing economies prevented a resolution in these issues, despite repeated attempts to revisit them, notably during the 2003 Ministerial Conference in Cancún, Mexico, whereby no progress was made.Since, some progress has been achieved in the area of trade facilitation. In July 2004, WTO Members formally agreed to launch negotiations. Under the mandate of the so-called "July package", Members are directed to clarify and improve GATT Article V (Freedom of Transit), Article VIII (Fees and Formalities connected with Importation and Exportation), and Article X (Publication and Administration of Trade Regulations). The negotiations also aim to enhance technical assistance and capacity building in this area and to improve effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues.

To date, Members have submitted a great number of proposals under the mandate which provide the basis for the ongoing negotiations. The negotiations should be completed under the overall Doha Development Agenda timeline.

Singapore–United States Free Trade Agreement

The United States-Singapore Free Trade Agreement was signed 6 May 2003 and ratified by the US House of Representatives on 24 July 2003 by a vote of 272-155. The US Senate ratified the bill on 31 July 2003 by a vote of 66-32. President George W. Bush signed into law the United States-Singapore Free Trade Agreement Implementation Act on 3 September 2003. The trade pact was implemented by both countries on 1 January 2004.

In addition to lowering of tariffs, the agreement also allowed easier movement of citizens from both countries. With its implementation, it became possible for some Singaporean citizens to reside in the United States for extended periods of time. Business people and traders with E1 or E2 visa are now allowed a two-year stay period but an indefinite extension is allowed. Professionals with H-1B1 visa are allowed to stay for a maximum period of up to 18 months but indefinite extension can be applied for. There is an annual quota of 5,400 visa for Singaporeans, but this quota has yet to be reached to date. Any unused quota is transferred to the general pool for use by citizens of other countries.United States citizens coming to Singapore are allowed to work in most business occupations for 3 months without a visa or Professional Visit Pass.

Stock Exchange of Singapore

The Stock Exchange of Singapore (SES) was a stock exchange company in Singapore. It was formed in 1973, when the termination of currency interchangeability between Malaysia and Singapore, caused the Stock Exchange of Malaysia and Singapore (SEMS) to separate into the SES and Kuala Lumpur Stock Exchange Bhd (KLSEB).

It merged with the Singapore International Monetary Exchange (SIMEX) on 1 December 1999, to form the Singapore Exchange (SGX).

Straits Times Index

The FTSE Straits Times Index (STI) is a capitalisation-weighted stock market index that is regarded as the benchmark index for the Singapore stock market. It tracks the performance of the top 30 companies listed on the Singapore Exchange. It is jointly calculated by Singapore Press Holdings (SPH), Singapore Exchange (SGX) and FTSE Group (FTSE).

History
Geography
Politics
Economy
Society
Nations
Summits
Other
Sovereign states
States with
limited recognition
Dependencies and
other territories

This page is based on a Wikipedia article written by authors (here).
Text is available under the CC BY-SA 3.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.