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Singapore Economy

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Singapore's fantastic location on major sea lanes and its industrious population have given the country an economic importance in Southeast Asia without considering its small size. After the independence in 1965, Singapore faced  decline due to lack of physical resources and a small domestic market. But with motivation, the Singapore Government adopted a pro-business, pro-foreign investments, export-oriented policy, combined with state-directed investments in strategic government-owned corporations. Singapore's economic strategy proved a success, giving a real growth of 8.0% from 1960 to 1999.

The economy remains stable after the 1997 regional financial crisis, with a growth rate of 9.4% for 2000. But during the 2008 recession singapore economy faced the finicial crises. This is the first time since 1965 that the government is dipping into its vast foreign reserve holdings to fund a USD 13.7 billion. Growth for 2008 was a low 1.1% compared to the last four years. This year is treated as  the worst year of performance since Singapore’s independence in 1965. Singapore is having the third largest oil refinery in the world.

Natural Resources

Singapore has no natural resources of its own due to its small area and it has been said that the people of singpore are consider as the ntural resources. The economy is driven by electronics, pharmaceuticals, other manufactured goods, financial services and world’s largest cargo seaport. For the development of the tourism sector, the government in April 2005 approved the starting casinos that should result in investments of more than U.S. $5 billion.
People of the singapore obtain the higher education and this is one of the major factor for the country’s economic growth. As the economy grows it attract the investments from more than 7,000 multinational corporations from the United States, Japan, and Europe. Singapore's largely corruption-free government, skilled work force, and advanced and efficient infrastructure.


Infrastructure

Over the years, Singapore has well developed, advanced and reliable infrastructure that has met the needs and demands of our economy and society. The government continues to improve and expand the country’s transport system, industrial and housing system, lastly the communication system. In combination with Germany and Switzerland, Singapore now becomes one of the most "connected" countries according to the GCR 2008.
It is situated at the crossroads of international shipping and air routes, Singapore is a center for transportation and communication in Southeast Asia. Singapore's Changi International Airport is a hub of various regional aviation served 80 airlines. A third terminal opened in January 2008, and considered as low-cost terminal for budget airlines has operated since 2006. The Port of Singapore is the world's busiest port for containerized transshipment traffic. With Malaysia and Thailand it is also linked by road and rail..
Advanced and high quality facilities of telecommunications and Internet facilities are state-of-the-art with the rest of the world. Radio and television stations are all government-owned or linked. With close tie of govt. the print media is dominated. Daily newspapers are published in different languages English, Chinese, Malay, and Tamil.

GDP

In 2007 the total GDP of singapore ia at $161,348.8 million USD with a per capita income of US$35,163. To compare with other countries, Singapore has twice the GDP per capita of Thailand, Malaysia, Indonesia, and the Philippines - combined. Annually the growth rate of Singapore's GDP is 7.7% while the annual inflation rate remains low at 2.1%. With the restructuring of Wall Street of Singapore in September 2008 cut its growth forecast significantly. 
Singapore GDP Growth Rate

 

In Singapore's GDP services sector contribute about US$110,448 million. The goods-producing sector like manufacturing, construction, utilities contributed about US$49,352 million while other minor activities like agriculture, fishing, quarrying, and ownership of dwellings sum up to SS$7,014 million. Finally, taxes levied on products by the government are account for about US$11,558 million in GDP.
Singapore is one of the most maintened country which has zero foreign debt upto 1995. But due to the recession period  its current domestic debt amounts to about US$175,500 million. The government total revenue in 2007 was close to US$28 billion, and it comes in the list of few countries that do not have to worry about their debt.


Currency

The circulation of paper money, coins, and demand deposits are about US$13,890 million (approx SG$19,733 million) in the economy. The value of Singapore dollar has been consistently appreciating against major currencies including the US dollar, British pound, and Japanese yen. Following is a break-down of the Singapore dollar's performance recently (figures in SGD)
Currecy

 

Export Market of Singapore

Singapore's principal export industries are petroleum products, food and beverages, chemicals, pharmaceuticals, electronic components, telecommunication apparatus, and transport equipment.


The three companies namely electronic components, telecommunication apparatus, and transport equipment contribute about $67,237 million USD. Petroleum products contribute about US$31,709 million in a year in spite of this that Singapore has no oil reserves of its own. Its chemical and pharmaceutical products earn around US$31,709 million in a year. Singapore’s other export industries include: food, beverages and tobacco, animal and vegetable oils, manufactured goods, other items such as photographic and scientific equipment. Singapore is the one of the leading country with the trade of almost every product.
Export

  1. Malaysia ... US$42 billion (14.7% of total Singapore exports)
  2. United States $33 billion ... (11.5%)
  3. Indonesia ... $30 billion (10.7%)
  4. Hong Kong ... $29 billion (10.4%)
  5. China ... $27 billion (9.5%)
  6. Japan ... $17 billion (6%)
  7. Thailand ... $13 billion (4.5%)
  8. Australia ... $12 billion (4.1%)

The above trade partners consumed over 70% of Singapore's total exports.


Import Market of Singapore

Singapore's main imports are aircraft, crude oil and petroleum products, electronic components, consumer electronics, industrial machinery and equipment, motor vehicles, chemicals, food and beverages, electricity generators, and iron and steel. Following is the table showing the import market partners:-
Import

  1. Malaysia ... $35 billion (14.4% of total Singapore imports)
  2. United States ... $31 billion (12.4%)
  1. China ... $27 billion (10.8%)
  2. Japan ... $25 billion (10.1%)
  3. Indonesia ...$14 billion (5.5%)
  4. Saudi Arabia ... $12 billion (4.7%)
  5. South Korea ... $11 billion (4.5%)

Singapore's top seven import partners generated over 62% of total Singaporean imports.
 
 Singapore's total trade in 2008 amounted to $656 billion, an increase of 9.6% from 2007. In 2008, Singapore's imports totaled $319 billion, and exports totaled $337 billion. Now Singapore is consider as one of the major trade country.

 

 

 

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