Introduction

Singapore is located in the southern tip of Malaysia Peninsula, is an equatorial country, North and
Malaysia are the East and west sides and bordering Philippines and Indonesia, consisting of 1
main island and the 63-small island, the land area of 719.1 square kilometres. Because of its
superior geographical position and excellent management, Singapore is still able to develop rapidly
into an advanced country without natural resources after independence. Singapore's economy relies
heavily on global economic trends and trade, Political stability with development of education have
made Singapore rich in human resources. With its advantages in human resources and
geographical position, Singapore has become one of the busiest ports and leading logistics in the
world.

The purpose of this assignment is to analysis how the economy of Singapore from 2008 to 2017
affected by the production out performance, labour market and the price level.

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 Production output performance analysis

Real Gross Domestic Product

The real gross domestic product is measures of national income and output for a given countrys
economy. The gross domestic product is equal to the total expenditures for all final goods and
services that produced by the nations economy during a given year when the value of economic is
fixed or within the country in a stipulated period of time. It is calculated as follows:
Real GDP = Nominal GDP / GDP Deflator X 100

Department of trade and industry (hereinafter referred to as the Singapore Ministry of trade and
industry) 17 released data show that in 2016 the annual Singapore economic growth of 2%, the
growth rate is higher than the previous estimate of 1.8%, 1.9% is slightly higher than that of 2015.
Data show that the manufacturing sector accounted for about 1/5 of the proportion of Singapore's
economy in 2016, the annual growth of 3.6%, reversing the decline in 2015 5.1% decline, this is
mainly due to the electronics industry, biomedical manufacturing cluster pull. However, as a result
of continued downturn in private sector construction, Singapore's construction sector grew by only
0.2% in 2016, down from 3.9% in 2015. The service sector grew by 1% a year, down from 3.2% in
2015.

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Real Gross Domestic Product Annual Growth Rate

Singapore is one of the Asian countries that depend on trade, and Singapore has benefited from
the recovery of China's demand, with both exports and industrial output rising both in the fourth
quarter. Singapore's economic outlook is unstable, however, as global demand remains weak and
the United States threatens to erect barriers to trade with countries such as china. The Singapore
government is forecasting economic growth of 1% to 3% in 2017 and will embark on a series of
strategies to keep the average growth rate from 2% to 3% over the next few years.

Real GDP Growth Rate = Real GDP (Y2)-Real GDP (Y1) / Real GDP (Y1) X 100

Government Measure

The slowdown in growth and the pressure of the economy facing the transition, this year's budget
plays a very important role in this regard. The total value of the 4 billion 500 million industry
transformation plans announced in the budget is a long-term strategic plan. (Dr Chen Qi ye) in
director of the Institute for Asian competitiveness Lee Kuan Yew School of public policy believes
that the plan reflects the government's determination to promote enterprise reform and economic
transformation. The plan includes enterprise transformation, industry transformation and
innovation through the transformation of the three-major axis as the overall economy in the future
to create more value and growth channels to lay the foundation to boost the gross domestic
product.

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 Real GDP per capital analysis

The Gross Domestic Product per capita in Singapore was last recorded at 52600.60 US dollars in
2016. The GDP per Capita in Singapore is equivalent to 417 percent of the world's average. GDP
per capita in Singapore averaged 22952.93 USD from 1960 until 2016, reaching an all time high of
52600.60 USD in 2016. The labor market tightening and employers fund to pay rate, the median
monthly income of local families last year achieved a 4.5% growth reaching 8666 dollars.
However, the economic outlook is uncertain and productivity will not rise substantially, this year's
income growth is expected to slow down.

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Labour market analysis

 Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Overall
Unemployment
Rate (%)

Annual Average 2.1 2.2 3.0 2.2 2.0 2.0 1.9 2.0 1.9 2.1 n.a.

Seasonally
Adjusted as at

Mar 2.7 1.9 3.2 2.2 1.9 2.1 1.9 2.1 1.8 1.9 2.2

Jun 2.3 2.2 3.2 2.2 2.0 1.9 2.0 1.9 1.9 2.1 2.2p

Sep 1.7 2.3 3.3 2.1 2.1 2.0 1.8 2.0 2.0 2.1 n.a.

Dec 1.7 2.7 2.3 2.2 2.1 1.9 1.9 1.9 1.9 2.2 n.a.

Resident
Unemployment
Rate (%)

Annual Average 3.0 3.2 4.3 3.1 2.9 2.8 2.8 2.7 2.8 3.0 n.a.

Seasonally
Adjusted as at

Mar 3.7 2.7 4.6 3.2 2.8 2.9 2.8 2.9 2.6 2.7 3.2

Jun 3.1 3.0 4.5 3.1 2.9 2.8 2.9 2.8 2.8 3.0 3.1p

Sep 2.4 3.4 4.9 3.1 2.9 2.8 2.6 2.7 2.9 2.9 n.a.

Dec 2.5 3.9 3.3 3.1 2.9 2.7 2.7 2.7 2.9 3.2 n.a.

Unemployed
Residents ('000)

Annual Average 56.7 62.9 86.9 64.8 60.6 60.0 59.8 61.2 62.5 67.4 n.a.

Seasonally
Adjusted as at

Mar 71.6 51.8 91.8 66.1 57.3 62.5 60.9 62.6 57.7 60.4 74.4

Jun 59.3 58.9 89.5 64.6 61.3 59.3 61.6 60.8 62.6 68.4 69.8p

Sep 47.5 66.6 98.1 63.4 61.7 60.6 56.6 61.2 65.3 66.6 n.a.

Dec 47.7 77.4 67.2 65.0 62.2 58.2 59.1 61.0 64.6 73.9 n.a.
 Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Median Duration
of Unemployment
Among
Unemployed 8.0 6.0 10.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 n.a.
Residents (June)
(Non-Seasonally
Adjusted)

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Resident Long-
Term 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Unemployment

Annual Average

Rate (%) 0.7 0.5 0.5 0.9 0.7 0.6 0.6 0.6 0.6 0.6 0.8

Number ('000) 13.5 9.9 9.8 18.7 13.7 12.2 12.6 13.4 12.1 12.7 17.0

Resident Long-
Term 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Unemployment
Source: Labour Force Survey, Manpower Research & Statistics Department, MOM
Latest figures published in: Labour Market Advance Release

Singapore labour market slightly improved, residents of the second quarter of this year the
unemployment rate is expected to decline, but also reduce redundancy. The labour market
forecast for the second quarter of 2017 released by the Ministry of manpower, showed that the
unemployment rate was expected to be 3.1% in June this year down from 3.2% in March.
Singapores Ministry of manpower will raise the foreign labour tax in the next two years, and
enterprises should pay more than 20 dollars to 400 dollars for foreign employees when they hire
foreign employees with work permit and S permit. In addition to slowing the growth of foreign
employees, it will also encourage companies to reduce their dependence on manpower and strive
for high-quality economic growth based on productivity.

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But small and medium enterprises need foreign workers that due to low labor wages, working
hours can long, small and medium enterprises rely heavily on foreign workers. If the government
continues to raise labor taxes, small and medium enterprises will be in trouble, it is difficult to
improve productivity and competitiveness. With the slow growth of the labor force, foreign aid
workers continued to tighten, Singapore's annual employment is expected to rise to 13 years to
the lowest point, pay growth also slowed down significantly. Analysts said the local business
environment in the doldrums and domestic economic slow down, companies in the recruitment of
staff believe will be doubly be careful , the local labor market is expected to continue to weaken
this year, salary growth is expected to continue to slow down.

Government Measure

Singapore government to help enterprise transformation. this years the Singapore government will
introduce a 4 billion 500 million dollars industrial transformation program that will allow different
industries to be more productive, innovative, and more investment oriented to go global. The
government will also work with businesses to create more jobs to attract young people.

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 Price level analysis

Singapore Inflation

Singapore's negative inflation in 2016, the consumer price index (CPI) fell 0.5% last year, which is
the country's overall price decline for two consecutive years. Trade and Industry Bureau of
management and financial statement issued last December, CPI growth of 0.2%, higher than the
zero growth in November. Core inflation, excluding accommodation and private land travel, was
0.9% last year up from 0.5% the year before. Following the slump in global oil prices, Singapore
lowered its overall inflation forecast in 2016 to minus 1% to 0% in February. The previous official
investigation in 0.5% - 0.5% is expected to be negative. But the MAS has kept its forecast for core
inflation at unchanged at 0.5%-1.5% in 2017.

Government Measure

2017 Singapore's core inflation rate was 0.8% in the first eight months of this year. Core inflation is
expected to rise by an average of 1% a year. At the natural level, core inflation reflects the fact
that price changes are not affected by policy, and is a major factor in the adjustment of monetary
policy by the MAS. MAS will announce its semi annual monetary policy statement next month.

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Singapore Consumer Price Index (CPI)

Singapore Ministry of trade and industry (MTI) and the monetary authority of Singapore (MAS) this
year (2016) released April 25th data show, Singapores consumer price index (CPI) fell in March
this year, mainly due to a fall in the price of gasoline and the price of car ownership, resulting in a
9% drop in personal traffic costs. A weaker rental housing market has led to a 3.2% fall in housing
costs. Singapores consumer price index (CPI) continued its decline, down 1.6% in May, and has
been accelerating.2016 The consumer price index, a measure of the country's overall price, has
fallen for the 19 month in a row, setting the record for the longest fall in prices. In May, the core
inflation rate (core inflation) climbed to 1%, higher than 0.8% in April and 0.6% in March, mainly
because of higher service costs. Source by Lianhe Zaobao).

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 Conclusion

Today of the trade protectionism of the new US government and the instability of the international
situation affect Singapore economy, which relies heavily on Trade and logistics management has
a greater impact. but Singapore has a wealth of Human resources, superior geographical position,
252 billion 200 million U. S. dollars reserve currency. Singapore government can accept
challenges in a realistic manner to create a higher level of trade off.

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