The Singapore’s government recently launched Online Application System for Integrated Services in January 2014. This is an integrated online application for more than 80 licenses from 17 government agencies. Since its launching in January 2014, the system already served 150.000 businesses. The system significantly increases convenient and efficiency as well as lower the costs. For example, it reduces time to apply for license from the average of 5 hours to less than 1 hour and reduces the average time to process license from 21 days to 8 days. More dramatic reduction happens in licensing fees, where incorporating a new company now cost SG$300 only (flat rate) from previously SG$1,200 – 35,000 (depend on company size). Furthermore, the government also ensures that there is a fair competition in the market by establishing good regulations. With fair competition, the government believes that private sectors will improve their efficiency and competitiveness and therefore will be able to compete in global market. It also gives benefits to the consumers because competition will increase choices and lower prices. Singapore’s government also commits to maintain an environment where there is a good labor management relation in place because is a vital factor to attract investors to invest in the country. The fact that Singapore successfully develops its economy and becoming one of the most advanced countries in Asia shows that so far the industrial relations system in Singapore is working remarkably well. Foreign Direct Investment has always been a strong source of investment to lead growth in Singapore. - Facilitates domestic and International trade. The Singapore government adopted a pro market policy where it strongly supports the f... ... middle of paper ... ...decline of social mobility in the society. 2. Highly dependent on global economy While Singapore has been successfully builds its economy based on open trade policy, it also creates a condition where Singapore economy is very sensitive to the economic situation in international market. Therefore, Singapore will be quickly influenced by global financial crisis. 3. Growing Dependence on Foreign Workers Singapore takes the policy to bring foreign workers to support economic growth because of the demographic change in the nation, where low infertility is characterized the recent population trend. Foreign workers are very important factor that support the economic development in Singapore. However, this policy may create a condition where Singapore will become over dependent on foreign workers which may causes social, political and security problems in the future.
Consumers would lose-out from increased competition in the short-run, however in the long-run consumers would ultimately benefit from increased competition. High levels of competition prevent businesses from abusing their market power, such as setting prices above or below what a perfectly competitive market would dictate to be at equilibrium and also encourages businesses to be innovative instead of becoming complacent, relying on consumer’s lack of choices.
Governments regulate businesses when market failure seems to arise and occur and to control natural monopolies, control negative externalities, and to achieve social goals among other reasons. Setting government regulations on natural monopolies is important because if not regulated, then these natural monopolies could restrict output and raise prices for consumers. It is important to regulate natural monopolies because they don’t have any competition to drive down the price of the product they are selling. Therefore, with no competition, they can control the output and the price of the product at whatever they deem necessary. With regulations the government keeps it fair both for the consumer and producer. It’s also important for government
Singapore as a country has had various transformations throughout its history, however the period 1950 and 1970 was quite critical. Much of these changes had a lot to do with the development of trade and manufacturing. This is without forgetting the financial sector where the intention was to come up with a financial hub that could be used in economic development. Looking at the case of Singapore, we would say that it is a productive economy with a very high market competition. This observation has been further clarified by the Swiss International Institute for Management Development, going with their report that they released in the year 2001 (Chellaraj & Mattoo, 2009). In this study, we intend to evaluate the case of political economy of development in Singapore and examine the tensions between the state and various economic institutions. In additions to examining this institution, we would also like to examine how these variables have contributed towards the attainment of favorable growth rates and economic prosperity.
In this paper the effects of firms with market power on economic welfare will be briefly examined. The first part outlines some of the negative effects of market power; the second exemplifies some of the benefits of market power and the case of Microsoft is used to support these arguments. In conclusion, an overview of the role of competition authorities and competition policy is carried out.
We will find out how Singapore manage to raises it economic development in such rapid growth aftermath of war and separation.
Debt crisis is becoming common and faced by most citizens in Malaysia. Between June 1997 and January 1998 a financial crisis swept like a brush fire through the "tiger economies" of SE Asian. Over the previous decade the SE Asian states of Thailand, Malaysia, Singapore, Indonesia, Hong Kong, and South Korea, had registered some of the most impressive economic growth rates in the world. Their economies had expanded by 6% to 9% per annum compounded, as measured by Gross Domestic Product. This Asian miracle, however, appeared to come to an sudden end in late 1997 when in one country after another, local stock markets and currency markets imploded. When the dust started to settle in January 1998 the stock markets in many of these states had lost over 70% of their value, their currencies had depreciated against the US dollar by a similar amount, and the once proud leaders of these nations had been forced to go cap in hand to the International Monetary Fund (IMF) to beg for a massive financial assistance. (W.L.Hill, n.d.)
Janus Corporate Solutions. (2011). Introduction to Singapore’s political system. Guide me Singapore. Retrieved April 4, 2011 from http://www.guidemesingapore.com/relocation/introduction/singapores-political-system
The overwhelming spread of the global crisis and poses great challenges for the Asian and Pacific regions as well as Vietnam. Vietnam is known as one of the most open economies of the globe and it relies deeply on external capital sources (e.g. FDI or ODA) to support its development demands. Thus, Vietnam is highly vulnerable to the vast effects of the financial crisis on global trade and financial flows.
As Singapore’s current replacement in fertility rate is 1.24, the chances of increasing the population growth to a consistent number is slim. Therefore, the only option to keep up with the growing workforce is to accept a larger pool of migrants which Singaporeans have to adapt to. Overall increasing the productivity rate of the country, which helps to bring in more revenue. But the setbacks are that the government may be viewed as not being for its people, but instead, only for the interest of foreign talents entering the country. Overall, it was mostly successful towards benefiting Singapore’s man power and productivity as a whole, as well as, increasing the
Generally speaking governments intervene in the market for two main reasons: "social efficiency and equity". [1] One does not expect to see a government intervene in the economy to favor a firm, or because the government would profit from such an intervention in the way a firm sees profit (except maybe voters positive perception of the intervention).
Japan will inevitably accept more foreign workers to meet the huge demand of labor force in various industrial fields such as nursing and caring. The present situation of foreign labor is critical. Low birth-rate and ageing process caused the lack of workforce especially in dirty, dangerous, and difficult jobs. Foreigners gradually started to take those unskilled jobs few decades ago. The number of foreign workers in Japan has 50% increased in last ten years (Koseirodosho Shokugyo Anteikyoku 6). Japan’s government is trying to catch up the situation. Its immigration policy is very si...
Asian financial crisis in 1997 is a good example to demonstrate the globalisation as a single issue in one country will motivate a domino effect on other countries. Since the crisis stared in Thailand because of the fail in banking system, a political upheaval was triggered in South Korea and Indonesia. At the same time, financial centres in New York, London, Hong Kong and Tokyo were also affected in this crisis. During the crisis, global news agencies utilised the Internet and telegraph updating news to their home countries. Such as the Economist, Reuters and the Financial Times which ar...
In addition, after the 2011 Singapore general election, the government of Singapore has greatly changed its economic approach and it seems to be better for the economy of Singapore so far. On the other hand, measures have also been taken to cool down the property market which has constantly affected inflation rates, also tightened the foreign labour policies that constantly influence the labour market and unfold its impacts onto the Singapore’s economy as it comes back in one round. The unemployment rate in Singapore has been maintaining itself as being one of the lowest numbers in the world. The majority of Singapore’s labour force is well educated and highly skilled. Even primary education is a must for all citizens (Economywatch.com, 2010). In addition, for the year 2010, Singapore had the 8th largest current account balance in the world at US$49.454 billion. To conclude, Singapore has come so far from its sunken economy since independence in 1965 to become a booming and prosperous economy that it is
Singapore ranks as one of the countries with the highest proportions of foreigners in its population and among its workforce in the world (8). Since, Singapore is considered to be a relatively safe and peaceful country, it attracts foreigners to work and live here. Due to the advancement of healthcare facilities, improved
Singapore’s population size has been increasing steadily over the past few years but only 60% of the population are Singaporeans. In order to increase the population size, there were new policies implemented. It is no secret to all Singaporeans that Singapore has had a low fertility rate for the past few decades. To tackle the problem, the Singapore government has introduced a number of policies to encourage young, married couples to start having more children in order to increase the population size.