singapore: economic setting
TRANSCRIPT
Economic Setting:
Singapore
• Modern Singapore was foundedas a trading post of the BritishEast India Company in 1819. Itsstrategic location on theSingapore Strait and its deepnatural harbor made it animportant port for British trade.
Economic Setting:
Singapore
It developed as an entrepôt,meaning it had a duty-free portthat allowed the import of goodssolely for the purpose of re-export. Nevertheless, whenSingapore became anindependent republic in 1965, its
Economic Setting:
Singapore
economic outlook was bleak. Itsinfrastructure was relativelyundeveloped, unemploymentwas high, and its foreign marketswere limited. Over the followingdecades, however, thegovernment’s free-market
Economic Setting:
Singapore
policies, coupled with strict fiscalcontrols, created one of thefastest-growing economies in theworld. Singapore developedbeyond its limited entrepôt role,with growth of themanufacturing and financial-
Economic Setting:
Singapore
services sectors bolstering theexport-oriented economy. Itsport became one of the busiestin the world.
Economic Setting:
Singapore
During the last three decades ofthe 20th century, Singapore’sbooming economic growthlargely outperformed the worldeconomy. At the same time,Singapore managed to maintainan inflation rate below world
Economic Setting:
Singapore
averages and large budgetsurpluses. Because of itsphenomenal economic growth,Singapore became known as oneof Asia’s “Four Tigers,” alongwith Hong Kong, South Korea,and Taiwan. Because of its sound
Economic Setting:
Singapore
fiscal policies and diversifiedtrading partners, Singapore wasthe least affected of all Asiancountries during a financial crisisthat hit the region in 1997.However, Singapore’s economy isparticularly vulnerable to
Economic Setting:
Singapore
fluctuations in global demandfor electronics products, whichmake up a significant portion ofthe country’s exports.
Economic Setting:
Singapore
Manufacturing accounts for 29percent of the GDP. Industry hasgrown rapidly since the 1960s,and Singapore now produces adiversity of goods, includingelectronic items, chemicals,transportation equipment and
Economic Setting:
Singapore
machinery, petroleum products,rubber and plastic products, andfabricated metal products.Electronic goods—notablycomputer disk drives,communications equipment, andtelevisions—account for about
Economic Setting:
Singapore
half of the country’smanufacturing output. Singaporeis one of the world’s largestpetroleum-refining centers and isalso an important shipbuildingcenter. The leading industrialarea is the Jurong IndustrialEstate.
Economic Setting:
Singapore
Singapore is a major world portand has extensive dock facilitiesalong Keppel Harbour on thesouthern coast. ChangiInternational Airport in theeastern part of the main island isone of the largest and most
Economic Setting:
Singapore
modern international airports inthe world. Singapore Island isserviced by the Mass RapidTransit (MRT) system, one of thecleanest and most efficienttransit systems in the world. It issupplemented by the Light Rail
Economic Setting:
Singapore
Transit (LRT) system. Thegovernment has significantlyexpanded both rail systems sincethe mid-1990s. Numerous roadsand expressways also cross theisland. Vehicle traffic isdiscouraged and controlled in
Economic Setting:
Singapore
high-density areas by anelectronic road-pricing system,which uses an electronicscanning device to charge road-use fees. Singapore is linked withWest Malaysia (PeninsularMalaysia) by a a toll road bridge
Economic Setting:
Singapore
and a causeway (with road, rail,and water-pipeline links) acrossthe Johore Strait.
Economic Setting:
Singapore
Singapore is developing as aglobal hub of information andcommunications technology, andtelecommunications is a vitalaspect of the economy. Thegovernment has placed highpriority on upgrading and
Economic Setting:
Singapore
expanding the country’s alreadywell-developedtelecommunications infrastructure,including a nationwide high-speed,broadband network connectingcomputers with the Internet.
Economic Setting:
Singapore
Personal use of computers andmobile communications devicesis high in Singapore, and abouthalf of all homes are connectedto the Internet.
Economic Setting:
Singapore
The government of Singaporeclosely regulates thebroadcasting industry and othermass-media communications.For example, all newspapers arepublic companies and aresubject to the scrutiny of the
Economic Setting:
Singapore
government may restrict the saleof foreign periodicals that aredeemed to influence domesticpolitical issues. Singapore hasthree English daily newspapers,the most widely circulated ofwhich is The Straits Times. There
Economic Setting:
Singapore
The unit of currency is theSingapore dollar (1.60 Singaporedollars equal U.S.$1; 2006average). Although Singaporedoes not have a central bank,the Monetary Authority ofSingapore performs most
Economic Setting:
Singapore
functions of a central bank. Thecountry’s currency, however, isissued by the Board ofCommissioners of Currency.There are more than 130commercial banks, most ofwhich are foreign-owned.
Economic Setting:
Singapore
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