Singapore

Rise to prominence
in the world market
Where is Singapore?


Population: 5 Million

Area: 710 km

Density: 7,540/km2

GDP Per capita: $61,046


Diverse & ethnic
75% Chinese
minorities of Malays, Indians, and
Eurasians.

Four official languages:
English, Malay, Chinese, and Tamil
Country Profile
Success
4
th
leading financial centre

1 of the 5 busiest ports

3rd-highest per capita income in the
world

world's largest oil-rig producer

one of the original Four Asian Tigers

only Asian country to receive AAA
credit ratings from all three major
credit rating agencies: Standard &
Poor's, Moody's, and Fitch.

High in international rankings:
education, healthcare,
economic competitiveness

Least corrupt countries in the world
[Transparency International}





Economy
Highly developed market economy ---
Extended entrept trade

14th largest exporter & 15th largest
importer in the world

Highest trade-to-GDP ratio (407.9%)
importance of trade

Large amount of FDI
location, corruption-free
environment, skilled workforce, low
tax rates and advanced
infrastructure.
Economy Sectors

Exports and refining imported
goods,
Manufacturing (27.2%)
electronics, petroleum refining,
chemicals, mechanical
engineering and biomedical
sciences sectors

Tourism
legalised gambling in 2005 and
allowed two casino resorts (called
Integrated Resorts).


Medical tourism hub
About 50 years ago


From 3
rd
world to
First
Government
People's Action Party has won every election
since self-government began in 1959.

Executive power rests with the Cabinet of
Singapore, led by the Prime Minister





Effective Governance
Key historical Events
founded in 1819 by Sir Stamford Raffles

The British obtained sovereignty over the island in 1824
- one of the British Straits Settlements in 1826.

Opening of the Suez Canal in 1869

May 1959 elections, the People's Action Party won a
landslide victory. Singapore became an internally self-
governing state within the Commonwealth and Lee Kuan
Yew became the country's first Prime Minister.

Occupied by the Japanese during World War II,
Singapore declared independence from the United
Kingdom in 1963

Achieved Independence in 1965

Since then, Singapore has developed rapidly
History 60s
GNP per capita < US$320
3
rd
-world nation with poor infrastructure and
limited capital.
Low-end commerce
No direct foreign investment.

Jurong Industrial Estate

Singapore Economic Development Board (EDB)
established
Start of Singapores industrialisation programme
(labour-intensive industries)

Capital and technology-intensive projects from
companies such as Shell Eastern Petroleum and
the National Iron and Steel Mills.

New issues had to be tackled - lack of raw
resources
Solution: develop its export-oriented industries
History 70s
Manufacturing more sophisticated.
new investments particularly in the
electronics sector and product
diversification, enhanced export
performance in spite of a global
recession

MNCs began R&D activities in Singapore

More EDB offices were set up in Europe,
USA and Asia

world recession in 1975 - economy
remained nimble and flexible

EDB pushed for more industrial projects
and manufacturing eventually became the
largest sector in the economy surpassing
trade.


History 80s
EDB co-establishing institutions of technology with
Japan, Germany and France

Science Park to stimulate R&D activities by the
private sector

high-wage policy - away from labour-intensive
industries and to high-technology industries

wage bills swelled, world economic slowdown
Singapore recession

to restore Singapores competitiveness flexi-
wage system

Total Business Centre, EDB set out to attract
international service corporations in the financial,
educational, lifestyle, medical, IT and software
sectors;

local enterprises Small Enterprise Bureau in 1986
History 90s
companies moving up the value chain and
intensifying their use of technology

service sector became the engine for growth.

Shifted focus from manufacturing to
strengthen the new key industries, namely
chemicals, electronics and engineering.
Leveraging leadership in these industries to
develop biomedical sciences

Singapores economic structure become
more diversified and balanced
wide range of businesses particularly in
higher value-added activities.

welcoming talent from around the world to
augment the local skill pool and
subsequently, become a hub of skilled
manpower and headquarters for decision-
making.

History - Millennium
2006, > $13 billion to promote R&D over the
next five years as part of its goal to increase
gross expenditure on R&D from 2.25 per cent to
3 per cent of gross domestic product (GDP)

The National Research Foundation

To further facilitate Singapore becoming an
information-led economy, a strong Intellectual
Property (IP) protection and enforcement
environment was put in place - resulting in the
citys ranking as the first in Asia for IP protection
today.

strong and established network of public and
private sector R&D centres which currently work
closely together with companies to
commercialise new technologies, processes
and products.