Economy of Singapore
Encyclopedia
Singapore
has a highly developed state capitalist mixed economy
; the state owns stakes in firms that comprise perhaps 60% of the GDP through entities such as the sovereign wealth fund
Temasek
. It has an open business environment, relatively corruption-free and transparent, stable prices, low tax rates (14.2% of GDP) compared to other developed economies, and one of the highest per-capita gross domestic product
s (GDP) in the world. Its innovative yet steadfast form of economics that combines economic planning
with free-market has given it the nickname the Singapore Model. Export
s, particularly in electronics
and chemicals, and services provide the main source of revenue for the economy, which allows it to purchase natural resources
and raw goods
which it does not have.
Most companies in Singapore are registered as private limited-liability companies (commonly known as "private limited companies"). A private limited company in Singapore is a separate legal entity, and shareholders are not liable for the company's debts beyond the amount of share capital they have contributed.
Singapore could thus be said to rely on an extended concept of 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. The Port of Singapore
is the busiest in the world, surpassing Rotterdam
and Hong Kong
. In addition, Singapore's port infrastructure
and skill
ed workforce, which is due to the success of the country's education policy
in producing skilled workers, is also fundamental in this aspect as they provide easier access to markets for both importing and exporting
, and also provide the skill(s) needed to refine imports into exports.
On 14 February 2007, the Singapore government announced that economic growth for the whole year of 2006 was 7.9%, higher than the originally expected 7.7%. Singapore's unemployment rate is around 2.2% as of 20 February 2009. As of 8 August 2010, Singapore is the fastest growing economy in the world, with a growth rate of 17.9% for the first half of 2010.
The government promotes high levels of savings and investment through a mandatory retirement savings scheme known as the Central Provident Fund
, and large portions of its budget
are expended in education and technology, with the former having a current rate as of 21% in 2001 compared to spending in the United States of 4%. However, the figures may be misleading as the majority of US education funding comes from the state level, not federal. It also owns Temasek-linked companies
(TLCs, companies that are linked to the government's investment arm) - particularly in manufacturing
- that operate as commercial
entities and account for 60% of GDP. As Singapore looks to a future increasingly marked by globalization
, the country is positioning itself as the region's financial and high-tech centre in competition with other East Asian cities.
Singapore's strategic location on major sea lanes and industrious population have given the country an economic importance in South-east Asia disproportionate to its small size. Upon separation from Malaysia in 1965, Singapore was faced with a lack of physical resources and a small domestic market. In response, the Singapore Government adopted a pro-business, pro-foreign investment, export-oriented economic policy combined with state-directed investments in strategic government-owned corporations. Whilst nominally socialist in the 1960s, the ruling party increasingly became openly capitalist but self-described itself as 'pragmatic', described by some as a euphemism for capitalism with authoritarian social controls. Singapore's government moved towards guiding the economy and investing in medicine and infrastructure. Living standards steadily rose, with more families moving from a lower-income status to middle-income security with increased household incomes. During a National Day Rally speech in 1987, Lee Kuan-Yew claimed that (based on the homeownership criterion) 80% of Singaporeans could now be considered to be members of the middle-class.
Singapore's economic strategy produced real growth averaging 8.0% from 1960 to 1999. The economy picked up in 1999 after the regional financial crisis, with a growth rate of 5.4%, followed by 9.9% for 2000. However, the economic slowdown in the United States, Japan and the European Union
, as well as the worldwide electronics slump, had reduced the estimated economic growth in 2001 to a negative 2.0%. The economy expanded by 2.2% the following year, and by 1.1% in 2003 when Singapore was affected by the SARS outbreak. Subsequently, a major turnaround occurred in 2004 allowed it to make a significant recovery of 8.3% growth in Singapore, although the actual growth fell short of the target growth for the year more than half with only 2.5%. In 2005, economic growth was 6.4%; and in 2006, 7.9%.
Singapore's largely corruption
-free government, skilled workforce, and advanced and efficient infrastructure have attracted investments from more than 3,000 multinational corporation
s (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.
Manufacturing and financial business services accounted for 26% and 22%, respectively, of Singapore's gross domestic product in 2000. The electronics industry leads Singapore's manufacturing sector, accounting for 48% of total industrial output, but the government also is prioritising development of the chemicals and biotechnology
industries.
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.
, due to its role as a financial hub for the region, Singapore has continually been criticized 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.
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 pediatric vaccines, its first such facility in Asia. Pharmaceuticals now account for more than 16% of the country's manufacturing production.
, an increase of 21% from 1999. Despite its small size, Singapore is currently the fifteenth-largest trading partner of the United States. In 2000, Singapore's imports totaled $135 billion, and exports totaled $138 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. 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.
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 U.S. 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 U.S. investment is in electronics manufacturing, oil refining and storage, and the chemical industry. More than 1,500 U.S. firms operate in Singapore.
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 (8.9%), Indonesia
(8.0%) and U.S. (4.0%). 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 U.S. appears keen to improve bilateral trade and signed the U.S.-Singapore Free Trade Agreement. Singapore corporate tax is 17%http://www.channelnewsasia.com/stories/singaporelocalnews/view/404196/1/.html/.
All figures in billions of Singapore dollars.
(NTUC), the sole trade union
federation which has a symbiotic relationship with the ruling party, comprises almost 99% of total organized labour. Government policy and pro-activity rather than labour legislation controls general labour and trade union matters. 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 Labour. The Singapore Government has stressed the importance of cooperation 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 in 2005, the unemployment rate is 2.7% in 2006, the lowest in the last four years, with 2.3 million people being employed.
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. But 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. In order to have some controls, the government imposes a foreign worker levy payable by employers for low end workers like domestic help and construction workers.
7.4%
Industrial production growth rate:
6.8% (2007 est.)
Electricity - production:
41.137.7 billion kWh (2007)
Electricity - production by source:
fossil fuel:
100%
hydro:
0%
nuclear:
0%
other:
0% (1998)
Electricity - consumption:
37.420.3 billion kWh (2007)
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:
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
has a highly developed state capitalist mixed economy
Mixed economy
Mixed economy is an economic system in which both the state and private sector direct the economy, reflecting characteristics of both market economies and planned economies. Most mixed economies can be described as market economies with strong regulatory oversight, in addition to having a variety...
; the state owns stakes in firms that comprise perhaps 60% of the GDP through entities such as the sovereign wealth fund
Sovereign wealth fund
A sovereign wealth fund is a state-owned investment fund composed of financial assets such as stocks, bonds, property, precious metals or other financial instruments. Sovereign wealth funds invest globally. Some of them have grabbed attention making bad investments in several Wall Street financial...
Temasek
Temasek Holdings
Temasek Holdings is an investment company owned by the government of Singapore. With an international staff of 380 people, it manages a portfolio of about S$193 billion at end of March 2011, focused primarily in Asia...
. It has an open business environment, relatively corruption-free and transparent, stable prices, low tax rates (14.2% of GDP) compared to other developed economies, and one of the highest per-capita gross domestic product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
s (GDP) in the world. Its innovative yet steadfast form of economics that combines economic planning
Economic planning
Economic planning refers to any directing or planning of economic activity outside the mechanisisms of the market, in an attempt to achieve specific economic or social outcomes. Planning is an economic mechanism for resource allocation and decision-making in contrast with the market mechanism...
with free-market has given it the nickname the Singapore Model. Export
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...
s, particularly in electronics
Electronics
Electronics is the branch of science, engineering and technology that deals with electrical circuits involving active electrical components such as vacuum tubes, transistors, diodes and integrated circuits, and associated passive interconnection technologies...
and chemicals, and services provide the main source of revenue for the economy, which allows it to purchase natural resources
Natural Resources
Natural Resources is a soul album released by Motown girl group Martha Reeves and the Vandellas in 1970 on the Gordy label. The album is significant for the Vietnam War ballad "I Should Be Proud" and the slow jam, "Love Guess Who"...
and raw goods
Raw material
A raw material or feedstock is the basic material from which a product is manufactured or made, frequently used with an extended meaning. For example, the term is used to denote material that came from nature and is in an unprocessed or minimally processed state. Latex, iron ore, logs, and crude...
which it does not have.
Most companies in Singapore are registered as private limited-liability companies (commonly known as "private limited companies"). A private limited company in Singapore is a separate legal entity, and shareholders are not liable for the company's debts beyond the amount of share capital they have contributed.
Singapore could thus be said to rely on an extended concept of Entrepôt
Entrepôt
An entrepôt is a trading post where merchandise can be imported and exported without paying import duties, often at a profit. This profit is possible because of trade conditions, for example, the reluctance of ships to travel the entire length of a long trading route, and selling to the entrepôt...
trade, by purchasing raw goods and refining them for re-export, such as in the wafer fabrication
Wafer fabrication
Wafer fabrication is a procedure composed of many repeated sequential processes to produce complete electrical or photonic circuits. Examples include production of radio frequency amplifiers, LEDs, optical computer components, and CPUs for computers...
industry and oil refining. Singapore also has a strategic port
Port
A port is a location on a coast or shore containing one or more harbors where ships can dock and transfer people or cargo to or from land....
which makes it more competitive than many of its neighbours in carrying out such entrepot activities. The Port of Singapore
Port of Singapore
The Port of Singapore refers to the collective facilities and terminals that conduct maritime trade handling functions in Singapore's harbours and which handle Singapore's shipping...
is the busiest in the world, surpassing Rotterdam
Port of Rotterdam
The Port of Rotterdam is the largest port in Europe, located in the city of Rotterdam, Netherlands. From 1962 until 2004 it was the world's busiest port, now overtaken by first Shanghai and then Singapore...
and Hong Kong
Port of Hong Kong
The Port of Hong Kong, located by the South China Sea, is a deepwater seaport dominated by trade in containerised manufactured products, and to a lesser extent raw materials and passengers. A key factor in the economic development of Hong Kong, the natural shelter and deep waters of Victoria...
. In addition, Singapore's port infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
and skill
Skill
A skill is the learned capacity to carry out pre-determined results often with the minimum outlay of time, energy, or both. Skills can often be divided into domain-general and domain-specific skills...
ed workforce, which is due to the success of the country's education policy
Education in Singapore
Education in Singapore is managed by the Ministry of Education , which controls the development and administration of state schools receiving government funding, but also has an advisory and supervisory role in respect of private schools...
in producing skilled workers, is also fundamental in this aspect as they provide easier access to markets for both importing and exporting
International trade
International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product...
, and also provide the skill(s) needed to refine imports into exports.
On 14 February 2007, the Singapore government announced that economic growth for the whole year of 2006 was 7.9%, higher than the originally expected 7.7%. Singapore's unemployment rate is around 2.2% as of 20 February 2009. As of 8 August 2010, Singapore is the fastest growing economy in the world, with a growth rate of 17.9% for the first half of 2010.
Macro-economic trend
This is a chart of trend of gross domestic product of Singapore at market prices estimated by the International Monetary Fund.| Year | Gross Domestic Product ($ millions) |
US Dollar Exchange | Nominal Per Capita GDP (as % of USA) |
PPP Per Capita GDP (as % of USA) |
|---|---|---|---|---|
| 1980 | 25,117 | 2.14 Singapore Dollars | 39.65 | 55.00 |
| 1985 | 39,036 | 2.20 Singapore Dollars | 36.63 | 63.41 |
| 1990 | 66,778 | 1.81 Singapore Dollars | 52.09 | 74.76 |
| 1995 | 119,470 | 1.41 Singapore Dollars | 86.14 | 90.60 |
| 2000 | 159,840 | 1.72 Singapore Dollars | 66.19 | 91.48 |
| 2005 | 194,360 | 1.64 Singapore Dollars | 67.54 | 103.03 |
| 2007 | 224,412 | 1.42 Singapore Dollars | 74.61 | 107.92 |
| 2008 | 235,632 | 1.37 Singapore Dollars | 73.71 | 107.27 |
| 2009 | 268,900 | 1.50 Singapore Dollars | 78.53 | 108.33 |
| 2010 | 309,400 | 1.32 Singapore Dollars | 82.13 | 119.54 |
The government promotes high levels of savings and investment through a mandatory retirement savings scheme known as the Central Provident Fund
Central Provident Fund
In Singapore, the Central Provident Fund is a compulsory comprehensive savings plan for working Singaporeans and permanent residents primarily to fund their retirement, healthcare and housing needs. It is administered by the Central Provident Fund Board, a statutory board under the Ministry of...
, and large portions of its budget
Budget
A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods...
are expended in education and technology, with the former having a current rate as of 21% in 2001 compared to spending in the United States of 4%. However, the figures may be misleading as the majority of US education funding comes from the state level, not federal. It also owns Temasek-linked companies
Temasek Holdings
Temasek Holdings is an investment company owned by the government of Singapore. With an international staff of 380 people, it manages a portfolio of about S$193 billion at end of March 2011, focused primarily in Asia...
(TLCs, companies that are linked to the government's investment arm) - particularly in manufacturing
Manufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
- that operate as commercial
Commerce
While business refers to the value-creating activities of an organization for profit, commerce means the whole system of an economy that constitutes an environment for business. The system includes legal, economic, political, social, cultural, and technological systems that are in operation in any...
entities and account for 60% of GDP. As Singapore looks to a future increasingly marked by globalization
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...
, the country is positioning itself as the region's financial and high-tech centre in competition with other East Asian cities.
Singapore's strategic location on major sea lanes and industrious population have given the country an economic importance in South-east Asia disproportionate to its small size. Upon separation from Malaysia in 1965, Singapore was faced with a lack of physical resources and a small domestic market. In response, the Singapore Government adopted a pro-business, pro-foreign investment, export-oriented economic policy combined with state-directed investments in strategic government-owned corporations. Whilst nominally socialist in the 1960s, the ruling party increasingly became openly capitalist but self-described itself as 'pragmatic', described by some as a euphemism for capitalism with authoritarian social controls. Singapore's government moved towards guiding the economy and investing in medicine and infrastructure. Living standards steadily rose, with more families moving from a lower-income status to middle-income security with increased household incomes. During a National Day Rally speech in 1987, Lee Kuan-Yew claimed that (based on the homeownership criterion) 80% of Singaporeans could now be considered to be members of the middle-class.
Singapore's economic strategy produced real growth averaging 8.0% from 1960 to 1999. The economy picked up in 1999 after the regional financial crisis, with a growth rate of 5.4%, followed by 9.9% for 2000. However, the economic slowdown in the United States, Japan and the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
, 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%.
Singapore's largely corruption
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
-free government, skilled workforce, and advanced and efficient infrastructure have attracted investments from more than 3,000 multinational corporation
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
s (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.
Manufacturing and financial business services accounted for 26% and 22%, respectively, of Singapore's gross domestic product in 2000. The electronics industry leads Singapore's manufacturing sector, accounting for 48% of total industrial output, but the government also is prioritising development of the chemicals and biotechnology
Biotechnology
Biotechnology is a field of applied biology that involves the use of living organisms and bioprocesses in engineering, technology, medicine and other fields requiring bioproducts. Biotechnology also utilizes these products for manufacturing purpose...
industries.
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 a financial centre in Southeast Asia. According to the Human Rights WatchHuman Rights Watch
Human Rights Watch is an international non-governmental organization that conducts research and advocacy on human rights. Its headquarters are in New York City and it has offices in Berlin, Beirut, Brussels, Chicago, Geneva, Johannesburg, London, Los Angeles, Moscow, Paris, San Francisco, Tokyo,...
, due to its role as a financial hub for the region, Singapore has continually been criticized for reportedly hosting bank accounts containing ill-gotten gains of corrupt
Corruption
Corruption usually refers to spiritual or moral impurity.Corruption may also refer to:* Corruption , an American crime film* Corruption , a British horror film...
leaders and their associates, including billions of dollars of Burma’s state gas revenues hidden from national accounts.
Taxation
Singapore introduced a Goods and Services Tax (GST) with an initial rate of 3% on 1 April 1994, increasing government revenue by S$1.6 billion (US$1b, €800m) and stabilising government finances. The taxable GST was increased to 4% in 2003, to 5% in 2004, and to 7% in 2007.Biotechnology
Singapore is aggressively promoting and developing its biotechnologyBiotechnology
Biotechnology is a field of applied biology that involves the use of living organisms and bioprocesses in engineering, technology, medicine and other fields requiring bioproducts. Biotechnology also utilizes these products for manufacturing purpose...
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
GlaxoSmithKline
GlaxoSmithKline plc is a global pharmaceutical, biologics, vaccines and consumer healthcare company headquartered in London, United Kingdom...
(GSK), Pfizer
Pfizer
Pfizer, Inc. is an American multinational pharmaceutical corporation. The company is based in New York City, New York with its research headquarters in Groton, Connecticut, United States...
and Merck & Co.
Merck & Co.
Merck & Co., Inc. , also known as Merck Sharp & Dohme or MSD outside the United States and Canada, is one of the largest pharmaceutical companies in the world. The Merck headquarters is located in Whitehouse Station, New Jersey, an unincorporated area in Readington Township...
, 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 pediatric vaccines, its first such facility in Asia. Pharmaceuticals now account for more than 16% of the country's manufacturing production.
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. 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.Trade, investment and aid
Singapore's total trade in 2000 amounted to S$373 billion1000000000 (number)
1,000,000,000 is the natural number following 999,999,999 and preceding 1,000,000,001.In scientific notation, it is written as 109....
, an increase of 21% from 1999. Despite its small size, Singapore is currently the fifteenth-largest trading partner of the United States. In 2000, Singapore's imports totaled $135 billion, and exports totaled $138 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. 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.
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 U.S. 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 U.S. investment is in electronics manufacturing, oil refining and storage, and the chemical industry. More than 1,500 U.S. firms operate in Singapore.
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 (8.9%), Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
(8.0%) and U.S. (4.0%). 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 U.S. appears keen to improve bilateral trade and signed the U.S.-Singapore Free Trade Agreement. Singapore corporate tax is 17%http://www.channelnewsasia.com/stories/singaporelocalnews/view/404196/1/.html/.
| Year | Total trade | Imports | Exports | % Change |
|---|---|---|---|---|
| 2000 | $273 | $135 | $138 | 21% |
| 2001 | ||||
| 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% |
All figures in billions of Singapore dollars.
International trade agreements
| Economy | Agreement | Abbreviation | Concluded | Signed | Effective | Legal text |
|---|---|---|---|---|---|---|
| New Zealand | Agreement between New Zealand and Singapore on a Closer Economic Partnership Agreement between New Zealand and Singapore on a Closer Economic Partnership The Agreement between New Zealand and Singapore on a Closer Economic Partnership entered into force on 1 January 2001. It is the most comprehensive trading agreement, outside of Closer Economic Relations with Australia, that New Zealand has negotiated... |
ANZSCEP | 18 August 2000 | 14 November 2000 | 1 January 2001 | http://www.fta.gov.sg/fta/pdf/anzscep.pdf |
| European Free Trade Association European Free Trade Association The European Free Trade Association or EFTA is a free trade organisation between four European countries that operates parallel to, and is linked to, the European Union . EFTA was established on 3 May 1960 as a trade bloc-alternative for European states who were either unable to, or chose not to,... |
Agreement between the EFTA States and Singapore | EFTA-Singapore FTA | 11 April 2002 | 26 June 2002 | 1 January 2003 | http://www.fta.gov.sg/fta/pdf/FTA_ESFTA_Agreement.pdf |
| Japan | Agreement between Japan and the Republic of Singapore for a New-Age Economic Partnership | JSEPA | October 2001 | 13 Jahttp://www.fta.gov.sg/fta/pdf/FTA_SAFTA_Agreement.pdf | ||
| United States | United States-Singapore Free Trade Agreement | USSFTA | 19 November 2002 | 6 May 2003 | 1 January 2004 | http://www.fta.gov.sg/fta/pdf/FTA_USSFTA_Agreement_Final.pdf |
| Jordan Jordan Jordan , officially the Hashemite Kingdom of Jordan , Al-Mamlaka al-Urduniyya al-Hashemiyya) is a kingdom on the East Bank of the River Jordan. The country borders Saudi Arabia to the east and south-east, Iraq to the north-east, Syria to the north and the West Bank and Israel to the west, sharing... |
Singapore Jordan Free Trade Agreement | SJFTA | 29 April 2004 | 16 May 2004 | http://www.fta.gov.sg/fta/pdf/FTA_SJFTA_Final%20FTA%20text%2015%20May%202004.pdf | |
| Brunei Brunei Brunei , officially the State of Brunei Darussalam or the Nation of Brunei, the Abode of Peace , is a sovereign state located on the north coast of the island of Borneo, in Southeast Asia... |
Trans-Pacific Strategic Economic Partnership Agreement | Trans-Pacific SEP | August 2005 | 1 January 2006 | http://www.fta.gov.sg/fta/pdf/FTA_USSFTA_Agreement_Final.pdf | |
| Chile Chile Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far... |
18 July 2005 | |||||
| New Zealand | 18 July 2005 | |||||
| India | India - Singapore Comprehensive Economic Cooperation Agreement Comprehensive Economic Cooperation Agreement The Comprehensive Economic Cooperation Agreement is an agreement between Japan and India to strengthen bilateral trade. The agreement is to be finalised by the end of 2006. A Joint Study Group in its report submitted in July 2006 recommended that the two countries should work towards the... |
India-Singapore CECA | November 2004 | 29 June 2005 | 1 August 2005 | http://app.fta.gov.sg/data//fta/file/India-Singapore%20Comprehensive%20Economic%20Cooperation%20Agreement.pdf |
| Korea | Korea-Singapore Free Trade Agreement | KSFTA | 28 November 2004 | 4 August 2005 | End 2005 | http://app.fta.gov.sg/data/fta/file/KSFTA_final_KSFTA.pdf |
| Peru Peru Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean.... |
Peru-Singapore Free Trade Agreement | PesFTA | September 2007 | 29 May 2008 | Early 2009 |
Singapore workforce and dependence on foreign workers
In 2000, Singapore had a workforce of about 2.2 million. The National Trades Union CongressNational Trades Union Congress
The National Trades Union Congress , also known as the Singapore National Trades Union Congress , is the sole national trade union centre in Singapore...
(NTUC), the sole trade union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
federation which has a symbiotic relationship with the ruling party, comprises almost 99% of total organized labour. Government policy and pro-activity rather than labour legislation controls general labour and trade union matters. 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 Labour. The Singapore Government has stressed the importance of cooperation between unions, management and government (tripartism
Tripartism
Tripartism refers to economic corporatism based on tripartite contracts of business, labour, and state affiliations within the economy. Each is to act as a social partner to create economic policy through cooperation, consultation, negotiation, and compromise...
), 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 in 2005, the unemployment rate is 2.7% in 2006, the lowest in the last four years, with 2.3 million people being employed.
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. But 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. In order to have some controls, the government imposes a foreign worker levy payable by employers for low end workers like domestic help and construction workers.
Facts & figures
Percentage of economic growth in Year 2007:7.4%
Industrial production growth rate:
6.8% (2007 est.)
Electricity - production:
41.137.7 billion kWh (2007)
Electricity - production by source:
fossil fuel:
100%
hydro:
0%
nuclear:
0%
other:
0% (1998)
Electricity - consumption:
37.420.3 billion kWh (2007)
Electricity - exports:
0 kWh (2007)
Electricity - imports:
0 kWh (2007)
Agriculture - products:
rubber
Rubber
Natural rubber, also called India rubber or caoutchouc, is an elastomer that was originally derived from latex, a milky colloid produced by some plants. The plants would be ‘tapped’, that is, an incision made into the bark of the tree and the sticky, milk colored latex sap collected and refined...
, copra
Copra
Copra is the dried meat, or kernel, of the coconut. Coconut oil extracted from it has made copra an important agricultural commodity for many coconut-producing countries. It also yields coconut cake which is mainly used as feed for livestock.-Production:...
, fruit, vegetables; poultry, eggs, fish, orchids, ornamental fish
Currency:
1 Singapore dollar (S$ or SGD) = 100 cents
Exchange rates:
| Year | Singapore Dollars per US$1 |
|---|---|
| 1981 | 2.0530 |
| 1985 | 2.1213 |
| 1990 | 1.7275 |
| 1995 | 1.4148 |
| 2000 | 1.7361 |
| 2005 | 1.6738 |
| 2008 (April) | 1.3643 |
| 2009 (March) | 1.5123 |
| 2010 | 1.2844 |
| 2011 (May) | 1.2336 |
International rankings
| International rankings of Singapore Singapore Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the... |
Political Rankings | |
|---|---|---|
| Organization | Survey | Ranking |
| Freedom House Freedom House Freedom House is an international non-governmental organization based in Washington, D.C. that conducts research and advocacy on democracy, political freedom and human rights... |
Civil and political liberties | "Partly Free" |
| Freedom House Freedom House Freedom House is an international non-governmental organization based in Washington, D.C. that conducts research and advocacy on democracy, political freedom and human rights... |
Press freedom Freedom of the Press (report) Freedom of the Press is a yearly report by US-based non-governmental organization Freedom House, measuring the level of freedom and editorial independence enjoyed by the press in every nation and significant disputed territories around the world. Levels of freedom are scored on a scale from 1 to 100... |
"Not Free" |
| Reporters Without Borders Reporters Without Borders Reporters Without Borders is a France-based international non-governmental organization that advocates freedom of the press. It was founded in 1985, by Robert Ménard, Rony Brauman and the journalist Jean-Claude Guillebaud. Jean-François Julliard has served as Secretary General since 2008... |
Press freedom Press Freedom Index The Press Freedom Index is an annual ranking of countries compiled and published by Reporters Without Borders based upon the organization's assessment of their press freedom records. Small countries, such as Andorra, are excluded from this report... |
133rd out of 175 |
| The Economist The Economist The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843... |
Level of democracy Democracy Index The Democracy Index is an index compiled by the Economist Intelligence Unit that claims to measure the state of democracy in 167 countries, of which 166 are sovereign states and 165 are UN member states... |
82nd out of 167 (Hybrid regime) |
| Transparency International Transparency International Transparency International is a non-governmental organization that monitors and publicizes corporate and political corruption in international development. It publishes an annual Corruption Perceptions Index, a comparative listing of corruption worldwide... |
Perceived level of corruption Corruption Perceptions Index Since 1995, Transparency International publishes the Corruption Perceptions Index annually ranking countries "by their perceived levels of corruption, as determined by expert assessments and opinion surveys." The CPI generally defines corruption as "the misuse of public power for private... |
1st out of 180 (for year 2010) |
| Privacy International Privacy International Privacy International is a UK-based non-profit organisation formed in 1990, "as a watchdog on surveillance and privacy invasions by governments and corporations." PI has organised campaigns and initiatives in more than fifty countries and is based in London, UK.-Formation, background and... and Electronic Privacy Information Center Electronic Privacy Information Center Electronic Privacy Information Center is a public interest research group in Washington, D.C. It was established in 1994 to focus public attention on emerging civil liberties issues and to protect privacy, the First Amendment, and constitutional values in the information age... |
Privacy from corporative and government surveillance Privacy International Privacy International is a UK-based non-profit organisation formed in 1990, "as a watchdog on surveillance and privacy invasions by governments and corporations." PI has organised campaigns and initiatives in more than fifty countries and is based in London, UK.-Formation, background and... |
"Endemic surveillance society" status |
| Economic Rankings | ||
| Organization | Survey | Ranking |
| International Monetary Fund International Monetary Fund The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world... |
GDP (nominal) per capita | 23rd out of 180 |
| International Monetary Fund International Monetary Fund The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world... |
GDP (PPP) per capita | 5th out of 181 |
| International Monetary Fund International Monetary Fund The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world... |
Amount of foreign exchange reserves | 9th out of 156 |
| United Nations United Nations The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace... |
GINI coefficient | Gini Coefficient of "42.5" (High income inequality country) |
| World Bank World Bank The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty... |
Ease of Doing Business Ease of Doing Business Index The Ease of Doing Business Index is an index created by the World Bank. Higher rankings indicate better, usually simpler, regulations for businesses and stronger protections of property rights... |
1st out of 183 |
| World Economic Forum World Economic Forum The World Economic Forum is a Swiss non-profit foundation, based in Cologny, Geneva, best known for its annual meeting in Davos, a mountain resort in Graubünden, in the eastern Alps region of Switzerland.... |
Ease of conducting Trade Global Enabling Trade Report The Global Enabling Trade Report was first published in 2008 by the World Economic Forum.The 2008 report covers 118 major and emerging economies... |
1st out of 118 |
| World Economic Forum World Economic Forum The World Economic Forum is a Swiss non-profit foundation, based in Cologny, Geneva, best known for its annual meeting in Davos, a mountain resort in Graubünden, in the eastern Alps region of Switzerland.... |
Global Competitiveness Global Competitiveness Report The Global Competitiveness Report is a yearly report published by the World Economic Forum. The first report was released in 1979. The 2011–2012 report covers 142 major and emerging economies.... |
3rd out of 133 |
| Social Rankings | ||
| United Nations United Nations The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace... |
Human Development Index Human Development Index The Human Development Index is a composite statistic used to rank countries by level of "human development" and separate "very high human development", "high human development", "medium human development", and "low human development" countries... |
23rd in the world ("Developed country" status) |
| The Economist The Economist The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843... |
Quality of life Quality-of-life index The Economist Intelligence Unit’s quality-of-life index is based on a unique methodology that links the results of subjective life-satisfaction surveys to the objective determinants of quality of life across countries... |
11th out of 111 |
| United Nations United Nations The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace... |
Population density | 2nd out of 239(Macau is not a country) |
| The Economist The Economist The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843... |
Cost of Living | 11th out of 111 |
| United Nations United Nations The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace... |
Number of immigrants | 22nd out of 192 |
| International Energy Agency International Energy Agency The International Energy Agency is a Paris-based autonomous intergovernmental organization established in the framework of the Organisation for Economic Co-operation and Development in 1974 in the wake of the 1973 oil crisis... |
Carbon dioxide emissions per capita | 58th out of 210 |
| Center for Strategic and International Studies Center for Strategic and International Studies The Center for Strategic and International Studies is a bipartisan Washington, D.C., foreign policy think tank. The center was founded in 1962 by Admiral Arleigh Burke and Ambassador David Manker Abshire, originally as part of Georgetown University... |
Number of troops | 62nd out of 166 |
| United Nations United Nations The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace... |
Fertility rate | 221st out of 223 |
See also
- Four Asian Tigers
- 5 C's of Singapore5 C's of SingaporeThe "5 Cs of Singapore", namely: Cash, Car, Credit card, Condominium and Country club membership, is a term relating to materialism. It arose as a popular joke based on certain truths attesting to the unstated Singaporean cultural ethos of materialistic obsession and aspiration to achieve these...
- BiopolisBiopolisBiopolis is an international research and development centre located in Singapore for biomedical sciences. It is located in One-North in Buona Vista, near Dover, and is close to the National University of Singapore, the Singapore Polytechnic, the Institute of Technical Education, the National...
- Dual economyDual economyA dual economy is the existence of two separate economic sectors within one country, divided by different levels of development, technology, and different patterns of demand...
- Immigrant workers in SingaporeImmigrant workers in SingaporeImmigration and immigrant workers in Singapore have been closely associated with the country's economic development. After independence in 1965, immigration laws were modified in 1966 to reinforce Singapore's identity as a sovereign state...
- Singapore Workplace Safety and Health ConferenceSingapore Workplace Safety and Health ConferenceThe Singapore Workplace Safety and Health Conference is a platform for the promotion of workplace safety and health thought and practice in Singapore and the region....