Singapore Being one of the Most Competitive Important Roles of the Government

Introduction

Singapore being one of the most competitive

Important Roles of the Government

In early 1960s, Singapore’s main source of income before the independence was from the entrepot, trade alone was accounted for more than one-third of the Gross Domestic Product (GDP) at that point of time and total GDP was only 0.70 USD Billion (1960). Since independence in 1965, Singapore has rapidly grown from being a third world to become a first world country that involves an impressive economic growth reaching an all-time high of 307.87 USD Billion in 2014. Open and outward-oriented improvement strategy was the main success for Singapore’s strong economic.

Throughout the years, Singapore’s export has advanced from manufactured goods, which were relative labour intensive to high value manufacturing products. For example, biomedical/pharmaceutical, electronics and chemicals. Singapore has also grown to become one of the financial hubs in the region with more than 200 banks presence in the nation.

Economic Decisions

Singapore government is also committed to building and maintaining world-class economic infrastructure and services by making several economic choices that the government feels that it will benefits in the nation’s economy development.  

1. Land Reclamation
2. Import Foreign Labour

Land Reclamation

Firstly, the existing land does not meet the demands of the growing population in the country. Therefore, the government decided to have land reclamation in order to make more space for the residential (HDB), tourism and industrial needs. Places like Punggol, Jurong Island and Marina Bay are constructed from the reclaim land. Petrochemical Industries in Jurong Island and Integrated Resort in Marina Bay further boost up the country’s economy.

Import Foreign Labour

Since 1970s, Singapore government decided to import foreign workers from various countries can give a rapid boost to the economic growth. Majority of the workers are working in the Construction, Manufacturing and Services sector. Foreign workers that possess specialized skills are welcome to support the new industries in Singapore in order to continue support upgrading and restructuring of the nation’s economy. These new grown industries, such as digital media, aerospace, biomedical engineering created more good jobs for Singaporeans. It will also increase Singaporean’s skills over long term.

With foreign workers supplement to our workforce, they do not add to our elderly population. They will return to their homeland after the term of employment ends, they also do not receive Government subsidies that are designed for the Singaporeans.

Fiscal Policy

In order to maintain the unemployment and inflation rates averaged less than 3% per annum (p.a.) and 2% p.a., fiscal policy is introduced to promote long-term economic growth, which helps Singapore, is able to maintain a healthy fiscal position and consistently budget surpluses over the year.