The world now looks to Singapore when talking about countries with robust economies. Thousands of multinational entrepreneurs and global professionals come to its shores each year to take advantage of the opportunities available here. What makes Singapore’s economy very attractive? Here is a glimpse into the economy of Singapore.
Overview of Singapore
Singapore built itself to become one of the highly developed countries in Asia. Its people and companies enjoy their successful free-market economy and corruption-free environment. Here, prices are stable, unemployment is low, and the GDP per capita is higher than in most developed countries.
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Although it also suffered during the global financial crisis in 2009, it was able to recover steadily. Its growth finally recovered in 2017 at 3.6%. This is the result of their constant actions to seek economic growth and development.
Now, Singapore is a major financial hub in the Asia Pacific region famous for its strong economy. In 2017, it ranked second as the world’s most open economy in the Index of Economic Freedom. Additionally, Singapore is also the second most pro-business country according to the World Bank’s Doing Business report.
Here is a closer look at the economy of Singapore.
Natural Resources
Singapore was not blessed with a land full of natural resources. It has very limited land with very few natural resources. Agriculture is scarce and they import most of their food from other countries. Even so, Singapore makes the most out of what they have. Instead, they make use of their available non-renewable resources, renewable resources, and water resources.
They have come up with an efficient water management policy to ensure sustainability of water resources over a period of time. Additionally, the state took a conscious decision to move from fuel to natural gas for their electricity generation. They also rely on biomass, a renewable resource, to cope with the increasing demand for energy.
Trade
Singapore has one of the largest export and import economies in the world. It exported $545 billion worth of goods and services and imported $642 billion in 2018. Its top import and export commodities include electronics components, and transport equipment, chemical products, and miscellaneous manufactured articles.
Singapore’s primary export partners are the United States of America, Japan, China, and the United Kingdom. On the other hand, its major import partners are the USA, Netherlands, China, Japan, and Hong Kong. Further, in an attempt to encourage additional trade, Singapore entered into a joint venture with Malaysia and Indonesia.
Industries
Important industries in the economy of Singapore include electronics, chemicals, financial services, petroleum refining, rubber processing ship repair, life sciences, and entrepot trade. Singapore’s strength lies in the manufacturing industry. The key clusters of its manufacturing sector are electronics, chemical, biomedical sciences, transport engineering, and logistics.
Further, close to manufacturing is the financial services industry. The industry has seen a swift development with Singapore’s actions to create a pro-business and politically-stable environment. Now, Singapore is home to over 200 banks and global financial services firms.
Other emerging sectors in Singapore include clean energy, healthcare, content development, medical technology, and aerospace engineering.
Open a Business in Singapore
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