The Singaporean economy is based on a highly successful free market policy in which the government plays a part. Why has it been so successful? For a country that has no natural resources and nothing unique to boast of except trading. It is not unlike the other regions of Asia in a sense.
It has no huge tracts of land for forming or spices either, which first put Asia on the maps of European Explorers. In fact, the plan to success was not all that difficult. It incorporated the Government’s openness, in which it has an open business environment, relatively corruption-free and transparent, stable prices, and hence, leads to one of the highest GDP’s in the world.
Factors:
1. Less than 5% of Singapore's land is used for agriculture 2. There are no exploitable natural resources in the country. 3. Its power is produced by thermoelectric plants 4. Limited water supply 5. Excellent transportation system
Points to note:
• Workforce is primarily in manufacturing, in the service industries, and in commerce • Major center of international finance in recent decades • The increasing importance of China is a threat to Singapore • The country's chief trading partners are Japan, the United States, Malaysia, and Indonesia • Exports in electronics and chemicals, and services provide the main source of revenue for the economy • Singapore also earns by purchasing raw goods and refining them for re-export • education policy in Singapore is producing skilled workers
Singapore and its progress:
Year GDP (millions) Against US xchange rate 1980 25 2.14 1985 39 2.20 1990 66 1.81 1995 119 1.41 2000 159 1.72 2005 194 1.64
Singapore Then:
The local industry was limited to trade and did not have the capability of creating export industry. It did not have much land available for practical use, and many of its areas were rural. The country needed organization and investors to take an interest. Singapore was more of a rainforest before anything else. There were mangroves and swampland. The only good point it had was that it was a local trading hub, a gateway from Europe to the rest of Asia. Many Sailors chose to make Singapore a pit stop where they could rest, repair and re-supply. This opportunity was seized and developed.
Using efficient trade as a lure, the government went under a restructure. One of the first goals was to make potential employers aware of the relative incorruptibility of the Singaporean bureaucracy. In much of the world laws are arbitrary and subject to change by the government.
Corporations do not want to risk investing millions of dollars in facilities in an area where various elements of the government can take part or all of it at any time. Much of the law was stiff, and some investors might not have liked the way things went, but they saw the advantage of a stable and, at that time, cheap labor force. Singapore Government adopted a pro-business, pro-foreign investment, export-oriented economic policy combined with state-directed investments in strategic government-owned corporations. Great success. It was producing real growth that averaged 8.0% from 1960 to 1999
It started as the government decided to reduce imports from other countries, and started producing their own. Then, with local demands met, they manufactured more and more, having a surplus, they exported to other countries. They made low and mid end products, refined it, and exported it at a higher cost. After that, The strategy was to improve the training of Singaporean workers through government training institutes. There developed in Singapore a culture of innovation. The government training program proved to be so beneficial to employers that they acquiesced to a special tax to help pay for it.
Research and development was the next trendsetter. Even with Singapore as one of the most industrialized countries, with an advanced population, Singapore can only be re-delegated as a trend follower. It has to suit the whims of the global scene for it to be able to survive. The leaders will be USA, Ireland, United Kingdom. The largest consumers are usually the ones who will control the global situation. Singapore has succeeded in escaping from the clutch of underdevelopment.
Health, education, social services and high per capita output without poverty and indebtedness have shown considerable improvement.
Furthermore Singapore now possesses a diversified economy with worldwide markets, geared to secondary and tertiary production. Scientific and technological methods are implemented in its industries on a large scale. Singaporeans have gained self-esteem by their own successful efforts and through government guidance.
Before 1960 Singaporeans had no identity of their own. Now they are striving after a national identity. Their ties with the city-state have fastened as the fruits of economic- and social development became widely distributed among the people. Affinity with China has lessened even though many Singapore Chinese have relatives in China. The numerous contacts (trade or otherwise) with people abroad have contributed to Singapore’s wealth. They have also made Singapore more vulnerable; but through careful maneuvering it is hoped the risks will be minimized.
However, in my personal opinion, what we gain for in terms of technology and expertise, we lose in morals and personality.
The truth is amoral, but in doing so, we make ourselves immoral.
This logic is applied to many forms of thinking in business these days, as well as the age old saying: ‘In the past, war was business, now, business is war’.
The directions of the government tend to lead people into pure productivity, making the people, dull, senseless and obedient. People are typecast into their respective roles. Look at the government, many of them come from the PAP, and in the government thinking is controlled.
A very effective way I might say, in terms of base psychology. People don’t even know they are being subtly controlled since they are exposed to it since young.
Future:
IP as a future engine of Singapore's economic growth. IP, or better known as Intellectual Property.
IP has 3 major results Singapore is fast moving towards a knowledge-driven globalised economy underpinned by innovation and enterprise. Intellectual capital will be the lifeblood of the next economy. To sustain our economic growth, it is crucial for us to expand substantially Singapore's capacity to create, commercialize and manage intellectual property or IP.
• A sophisticated IP management services industry is vital to the efficient functioning of the innovation-driven economy that Singapore is transitioning into, in the same way that a sophisticated financial services industry is vital to the efficient functioning of our present economy. This is because intellectual capital will be the currency of the innovation-driven economy. The IP industry will therefore be a key business infrastructure to lubricate the next economy by facilitating the efficient exploitation, valuation, protection, trading and management of intellectual assets in the conduct of business. If a good idea is made and stolen, and the process repeated all over Singapore, who would want to innovate and create? The Economy that Singapore has known will collapse. The economy will become stagnant.
• A strong IP industry helps companies build and commercialize their intellectual capital more effectively. With new ideas, products perhaps, more companies can have a business advantage, leading to friendly business competitiveness. Competition leads to a healthy progress to the better.
• With constant development, there will be the need for skilled specialists in their field, creating openings for such as business-savvy technologists, IP lawyers, patent agents, IP engineers and Chief IP Officers.
jonnyboy53 9:28 PM
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Jonathan. 22 this year, elitist fuck. Born in the higher echelons of life. Aims to be an awesome teacher.
