SINGAPORE

AN ECONOMIC MIRACLE
Marta Zaczyska

Agenda:
General information
Macroeconomic indicators
Factors determining Singapores position

Economic Structure
Government-led clusters
Case study: Maritime cluster
SWOT Analysis

General Information:
Modern city state on the Southern
coast of Malai Peninsula, South-East
Asia
Area: 716,1 km
Population: 5 milions
Society: 74% Chinese decent, 13%
Malai decent, 9% Indian decent, 4%
other
Religion: Buddhism, Christianity,
Islam, Taoism, Hinduism
Language: English, Mandarin, Malay,
(unofficial: Singlish)

History and politics:

Independent since 1965
Co-founder of ASEAN

Lie Kuan Yew the first prime

minister
parliamentary republic with
a Westminster System
Very low corruption and criminal
rate, but also low freedom of
speech and assembly.

Macroeconomic indicators (CIA):

GDP (purchasing power parity):

Agriculture - products:

$445.2 billion (2014 est.)

country comparison to the world: 40

orchids, vegetables; poultry, eggs; fish,

ornamental fish

GDP - per capita (PPP):

Industries:

$81,300 (2014 est.)

country comparison to the world: 7

GDP - composition, by end use:

household consumption: 40.7%

government consumption: 10.3%

electronics, chemicals, financial services, oil

drilling equipment, petroleum refining,
rubber processing and rubber products,
processed food and beverages, ship repair,
offshore platform construction, life sciences,
entrepot trade

investment in fixed capital: 23.2%

investment in inventories: 2.7%

exports of goods and services: 190.8%

imports of goods and services: -167.8%

(2014 est.)

GDP - composition, by sector of origin:

Unemployment rate:

agriculture: 0%

1.9% (2014 est.)

industry: 25.3%

1.9% (2013 est.)

services: 74.7% (2014 est.)

country comparison to the world: 9

Labor force - by occupation:

agriculture: 1.3%
industry: 18.6%
services: 80.1%
note: excludes non-residents (2013)

Most important
factors:
key global business,financial hub and one of
the most innovation-driven and developed
countries in Asia.
the worlds freest, most competitive and
business friendly economies, and is currently
ranked first in Word Banks Ease of Doing
Business Index and second in the World
Economic Forums Global Competitiveness
Index.

Improving infrastructure, natural connectivity,

skilled workforce, good labour-employer
relations, political stability, favourable tax
regime, and strong rule of law have all
contributed to the countrys competitive
advantage.

Economic structure
The Singapore economy is primarily
supported by activities in the
manufacturing and services sectors.
Manufacturing activities account for
about a 1/5 of the countrys overall GDP
while the services sectors contribute
approximately 2/3 of GDP. Given its
small domestic market, Singapore has
traditionally relied heavily on foreign
trade, both from port activities as well as
from the exports of electronic
components and refined petroleum and
petrochemical products. For example,
Electronics and Chemicals
manufacturing together accounts for
over 64% of the total manufacturing
output and approximately 38% of the
manufacturing value added in 2011.

Government-led clusters

Significance of Shipping and Sea trade

Shipping is an international and capital intensive
business
In todays interconnected world of commerce, more
than 90% of the worlds trade is carried by sea.

Seaborne trade remains the most energy-efficient and

environmentally friendly mode of transporting cargo.
Without it, half the world would starve and the other half
would freeze.
Asian ports hold 39% of worlds maritime trade
Singapore is the second biggest port in Asia, with the
prime location in this area.

Case study: Maritime cluster

Singapores maritime ecosystem comprises over 5,000 establishments employing
from more than 170,000 people, and contributing about 7% of GDP.
Singapore is a premier global hub port, connected to more than 600 ports in
over 120 countries, giving users reliable, value-added and cost-efficient marine
services and facilities.
International Maritime Centre

Interesting data:
At any one time, there are about 1,000 vessels in the Singapore port.

Every 2-3 minutes, a ship arrives or leaves Singapore.

Although Singapore does not produce any oil, it is the top bunkering (ship
refuelling) ports in the world. In 2013, more than 42 million tonnes of bunkers
were lifted in Singapore. This is enough to fill over 17,000 Olympic-sized pools.

About a million visitors cruise into Singapore annually.

SWOT Analysis of Singapores Maritime Cluster

Strenghts:

Weaknesses:

Prime location for the Asian

market

Well developed infrastructure:

roads, warehouses, airports

Relatively high costs of operation

(especially land rental and
wages)

Major shipping companies

already have their head offices in
Singapore

Small geographic space and

domestic market

Fragmented industry with few

global players

Stable political, economic and

social conditions

Lack of a logistics cluster

Shortage of skilled, experienced

maritime and logistics
professionals

Economy open for foreign

investment (FTA)

Well educated and trained

workforce

Strong legal system and businessfriendly tax structure

SWOT Analysis of Singapores Maritime Cluster

Opportunities:

Threats:

Relocation of global
manufacuring and distribution
base (mainly to China)

Very strong competitiveness with

the port in Shanghai

Increase in size of ocean liners

Singapores small territorial waters,

congested waterway and
increasing maritime accidents

Strong growth potential for

Southeast Asia. The growth in
domestic trade in Asia also
boosted Singapores contener
traffic.
Steady growth of Singapores
GDP, 5,000 maritime companies,
contributing to 7% of its GDP

Great reputation of the hub

Good postion for Asia-Pacific

trade

Singapores offshore trading

companies ($120 bln)

Bibliography:
http://www.medtech.sg/singapores-economic-climate-competitiveadvantages-in-the-biomedical-sciences/#prettyPhoto
http://en.wikipedia.org/wiki/Singapore
https://www.cia.gov/library/publications/the-world-factbook/geos/sn.html
http://www.economistinsights.com/sites/default/files/downloads/EIUATIC_Report2_Web_Revised.pdf
http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_201314.pdf
http://www.mpa.gov.sg/
https://www.mti.gov.sg/ResearchRoom/Documents/app.mti.gov.sg/data/
pages/507/doc/ERC_SVS_LOG_MainReport.pdf