Introduction
For years headlines on Asian countries are known worldwide for their improvement and developing economic. According to (Investopedia, 2014) Singapore, Hong Kong, Taiwan and South Korea are known as the “four tigers” due to their foremost leading economy. Soon to follow, Indonesia, Malaysia and Thailand will be the next new rising countries focusing to improve their economy due to the rapid growth.
Singapore is one of the example for today discussion on how the country success it’s economic performance, from the third world to first class status. Services in Singapore plays the biggest roles on economy. Official released (Domestic Economy Division, Economics Department, 1998) show that Singapore highest contributing services that is Financial and business and soon to follow commerce, transportation, communications, social, community and personal services.
We will look into few factors on Singapore economy on how the country achieve it’s macroeconomic stability. The theory of Neoclassical growth is the example for Singapore rapid growth due to its technological advancement and human capital as priority.
What are the contributing factors for Singapore Success?
Below are the six lists of factors that may lead to Singapore success for the longest run.
a. Basic Right
Few factors of the basic right consist of education, welfare, and medical
Education is the elemental of the economy development. With education,
It helps on person’s quality of productivity, expertise in labour force and increased in income. Singapore government ensures the educations are at the highest quality. Education for the primary and secondary school will have to undergo a total of 10 years of compulsory education and student will then marked ...
... middle of paper ...
...ngs or activities associated for criminal or terrorism, prohibited guns, drugs, and piracy. If anyone found guilty, legal action will take place to those who practice corruption or criminal.
Singapore will continue to success in economy. According to article appear (Kevin, 2014), First quarter of 2014 based on year on year basis, Singapore economy has increase by 5.1 percent compare to the previous month of October – December period where it is lower than 5.5 percent.
Despite being the best in economic, Singapore is also the most expensive place to live in. Everything in Singapore are expensive which include purchasing of cars, foods, real estate, public transportation, clothes, bags and etc. As the prices increase, it will affect for those low income and elderly. How far can Singaporean sustained the higher standard of living cost? These question will remain
The main purpose of the government’s existence is to provide economic stability for the country, to determine future economic prospects. One’s nation should have a stable economy to show prosperity in business, thorough and maintainable finances and good cohesion. Studies have shown that many developing countries such as Singapore are experiencing inflation problems which are affecting economic growth. As economic growth is measured by the variations in Gross Domestic Product (GDP), it is essential to understand the causes of inflation and unemployment to further understand the variations such as recession and expansion. Several methodologies such as the Aggregate Supply (AS) and Aggregate Demand (AD) model and Phillips Curve approach affect Singapore’s economy, further elaborated in this text.
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.
The health of the Singapore economy based on the analysis of its positive balance of payment is very favourable because it is shown in part (a) that Singapore economy is growing at a high rate and is assured of economic growth. Singapore has very few debts and these debts will not hinder further plans as the income generated will be more focused on research and development sector rather than repayment of debts. Additional, Singapore’s Gross Domestic Product (GDP) is high and this means that the production activities are also high and the people within
In fact, furthering one’s education has a positive influence on society as our country saves money by spending less and increasing tax income. Furthermore, people who have at least a two-year degree tend to make higher wages and have a better job in our struggling economy. For example,
The increase in population have both pros and cons on the effect of Singapore’s economic growth and standard of living. High population growth rate cause difficulty for countries to raise or maintain its current standard of living. As higher population means competition over household, foods, healthcare, and education. Government needs to pump more money to
We will find out how Singapore manage to raises it economic development in such rapid growth aftermath of war and separation.
The largest educational system is in china there is a law that makes it mandatory that all Chinese students have nine year of education experience this law was passed in 1986. The importance of having an education is the key to success to be comfortable and abl...
Janus Corporate Solutions. (2011) Introduction to Singapore’s economy. Guide me Singapore. Retrieved April 4, 2011 from http://www.guidemesingapore.com/relocation/introduction/singapores-economy
Following the trend of economy, it is important to investors to understand that strong economy creates strong stock market. To elaborate further, as stock prices are increased by current and future expectations of earnings, thus without a strong economy it would be difficult for the companies to increase and sustain their earnings (Kong 2013). The economy development is usually calculated using the gross domestic product of a countries. On the other hand, a change is the stock price can also cause a major impact to the consumers and investors directly. Hence, a loss in confidence by investors can cause a downturn in consumer spending in the long term, which will also affect the economy’s output (Aysen 2011). The graph below shows the relationship of stock market price (KLCI) and the GDP of Malaysia in 2009. Thus, it can be concluded that the economy and the stock market has a positive relationship.
time. As time progresses, countries seem to be able to grow at a much more rapid
Singapore’s deposit interest rate in year 2012 is 0.1% and lending interest rate is 5.4%. In Singapore, doing investment is better than save the money in bank because of the low interest rate. The inflation rate of Singapore based on consumer prices is 4.5% and 2.4% for year 2012 and 2013 respectively.
In conclusion, it is my belief that there is a bright future for Singapore and every other country that allows the freedom of choice for their people. After all it is the people that make a nation, not the governing-few. The governing-few work for us, we do not work for them. And in reality, that is not only true for countries, but states, cities, companies, and industries.
An Analysis of Gross Domestic Product (GDP). The current state of the economy in the United States has been slow in recent months. While the economy is not currently in recession, we may eventually fall victim to the first recession we’ve had in nearly ten years. The economy in general is showing growth, just not much.
Inflation, what does it mean? It is simply the rate at which the price of goods and services rises and thus leads to falling in purchasing power. It also means the rise in price as compared to a pre-defined benchmark. It can also mean an increase in supply of money in the market. Growth in economics refers to economic growth of a country and it means an increase in the market value of services and goods produced by a country over a period of time. Whatever the meaning is taken, both inflation and growth are closely related and dependent on each other and a proper balance should be established.
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