Economy

 

From the moment it became independent onward, Singapore has experienced a sustained growth which made the City-State one of the 4 Asian dragons, together with Hong Kong, Taiwan and South Korea.

Quality of the economic environment

Singapore could not count on its scarce natural resources to pave the foundation of its economy. It inherited of a privileged geographic location for trade and marine activities. The Country's governement managed to provide foreign investors and entrepreneurs with an exceptionnally faborable environment: political stability, social peace, reliable regulations, good financial and banking system, skilled workforce and excellent technological framework. Singapore thus attracted numerous multinational companies which set up their regional headquarters and plants locally.

High value added specialties

Taking its large neighbour's (China, India) economic growth into account, Singapore rapidly disengaged from standard manufacturing, requiring abundant manpower sources, and invested massively in highly capitalistic sectors: Health and life sciences, biotechnology, Information technology ...
Singapore's economy is currently founded on 3 pilars: Manufacturing, financial activities & BtoB services, transport & communication.

A rapid and steady growth

From 1965 until 1997,Singapore enjoyed a yearly growth rate exceeding 8%.
In 1997, the country had to deal with the Asia crisis, to which it rather better resisted than its neighbours. In 2001, Singapore was impacted by the burst of the technological bubble, followed, in 2003, by the avian flu epidemy. The growth rate dwindled and even turned red (in 1998 and 2001) but also incorporating fastuous period : +9,6% in 2000, +8,9% in 2004, +7,7% in 2007, +8,2% in 2008.
Due to its being highly dependent on foreign exchanges, Singapore's economy was dramatically impacted par the recent crisis, but steady growth was renengaged as early as Q4 2009. Investments in new ecomic sectors and infrastructures are continuously being made, the financial sector indirectly have taken advantage of the situation in the US and in Europe, and the Government voted important budgets to enhance singaporean workers' level of qualification and facilitate their adaptation to the evolving needs of the economy.

An attractive business climate

Singapore is implementing an extremely attractive economic policy with a global strategic vision on the mid and long term.
Individuals and companies take adavntage of low taxes: the income tax rate is capped at 22% for individuals, company profit tax rate is capped at 20% and GST is at 5,5%)
Singapore is seeking to drive foreign investments towards new strategic sectors organized in clusters.

Economic sectors:

  • Information Technology. At the heart of the Singapore Government's industrial strategy. The market for equipments is dominating, followed by telecommunications, telecommunication services, softwares, computer services and content management. Singapore's advantages:  a highly qualified manpower, its harbour installations. Singapore is positionning itself as regional hub providing electronic components that are assembled in Malaysia, The Philippines and Thailand, prior to being shipped to western countries.
  • Equipment: petrochemicals, aeronautic, shipyards, environment, biotechnology
  • Consumer goods: food, pharmaceutical products, cosmetic, Textile, housing and decoration
  • Services: banking and financial services, insurance, tourism

More information on Singapore's economy and its buoying segments:

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