Economic overview
Singapore is a top ranking, globally connected, pro-active business environment with a strong infrastructure that can maintain a diverse range of industries. Singapore comes 6th in the top 20 Business Environments behind Hong Kong, Finland, US, Canada, and Denmark. These successes show Singapore to be a good model of economic development. Singapore’s economy has been seen to grow unimpeded for four decades since its independence in 1965. Singapore’s neighbours have been unable to achieve similar success in such a strict time frame. Key reasons for Singapore’s success have been due to their ability to make decisive decisions and plan objectives successfully.
- Industries in need of development and modernisation have been targeted individually so that improvements can be made efficiently.
- Government Linked Companies (GLC’s) have been established that work with the government to become successful and subsequent models for other businesses, such as Sembcorp industries, and Singapore airlines.
- To support these improvements a reliable infrastructure has been put in place
The Singapore economy has suffered some damage in recent years. The SARS (Severe Acute Respiratory Syndrome) outbreak, although dealt with efficiently by the Singapore government, caused the tourism sector to be considerably affected; visitor arrivals to the country fell by almost 50%. Singapore is heavily reliant on the electronic goods global market and a slump in the demand for products within this market caused the countries GDP to fall from 10% in 2000 to 2.4% in 2001. Singapore has managed to recover its GDP percentages and is now calculated at 6.4% for 2005. These recoveries made by Singapore’s economy shows its resilience and the governments ability to put in place any necessary changes react to any changes in the global business environment. ‘ source www.edb.gov/sg/ ’
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Opportunities
GDP: US $117.9billion |
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Top ten UK imports from Singapore: January-July 2005 (£thousand)
1. Organic chemicals 986,834
2. Offices machines and ADP equipment 363,038
3. Power generating machinery and equipment 137,819
4. Electrical machinery, apparatus and appliances 97,437
5. Telecommunications and sound recording and reproducing apparatus 96,155
6. Miscellaneous manufactured article 53,814
7. Professional, scientific and control instruments 38,004
8. Clothing 26,921
9. Medical and pharmaceutical products 26,635
10. General industrial machinery and equipment 16,732
Top ten UK exports to Singapore: January-July 2005 (£thousand)
1. Power generating machinery and equipment 177,019
2. Electrical machinery, apparatus and appliances 107,845
3. Office machines and ADP equipment 94,774
4. Miscellaneous manufactured articles 93,608
5. Telecommunications and sound recording and reproducing apparatus 74,853
6. Professional, scientific and control instruments 58,706
7. Other transport equipment 50,131
8. General industrial machinery and equipment 49,664
9. Organic chemicals 49,367
10. Manufactures of metal 34,957
Export partners: Malaysia 15.2%, US 13%, Hong Kong 9.8%, China 8.6%, Japan 6.4%, Taiwan 4.6%, Thailand 4.3%, South Korea 4.1%
Import Partners: Malaysia 15.3%, US 12.7%, Japan 11.7%, China 9.9%, Taiwan 5.7%, South Korea 4.3%, Thailand 4.1%
UK relations and investment
As well as being ranked as the 12th largest export market for Singapore the UK is the largest investor with over 700 companies based there. Some of the long term investing companies in Singapore are Glaxo SmithKline, Shell and BP, these UK companies are supported by 17 000 British nationals living in Singapore. The business links between the UK and Singapore are strong and always seeing ongoing improvement, but the cultural relations are equally successful. Both the UK and Singapore have a strong overseas presence. The British Council, present in Singapore, offers English Language and professional development training, education advice, and aid in organising cultural events. There are also strong educational links with 5,000 Singaporeans studying in the UK. The UK embraces the Singaporean nationals in the country, February and March 2005 saw the six-week Singapore Season in London, which showcases the various trends in the Singapore Arts Scene.
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International Relations Within the Southeast Asian community the ASEAN is an integral mediator between the countries and demands the cooperation of all the countries involved. Singapore was one of the founding members in 1967 and endeavours to maintain positive connections and relations with members and non-members of ASEAN. Singapore was extremely fortunate to not be affected by the Tsunami that hit the region in 2004, as the country is so close to the epicentre of the earthquake and subsequent Indian Ocean Tsunami. The country was quick to respond and show support to its neighbours who had suffered considerably, in particular Indonesia. Singapore is one of the five ASEAN countries who are currently participating in the EU/ASEAN Aceh Monitoring Mission. Globally Singapore is actively involved with a variety of international concerns and organisations, including the UN, the Commonwealth, APEC, the WTO and the NAM. |
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Human Rights
Singapore has an active internal security network and military force put in place to act against national security threats. The government has also frequently used its security legislation to restrict and control a wide range of activity within the country. The Internal Security Department (ISD) is responsible for carrying out the procedures outlined by the Internal Security Act (ISA); this includes enforcing the detention of citizens without trial. Although there are problems in some areas of Singapore’s Human Rights activities the Government usually respects the Human Rights of its country’s citizens. The areas where there rise occasional concerns in the government’s human rights activities are various. The government still maintains the power to detain people and restrict their travel, freedom of speech and right to associate freely. There is also some legal discrimination against women, but the government is making active attempts to counter social discrimination against minorities and women. Human Trafficking is still a problem within the country.
Political history
Singapore has been a trading centre since approximately the 13th century. Sir Stamford Raffles, hoping to extend British influence in Southeast Asia, requested permission from local rulers to establish a trading post from Singapore. This was granted an ultimately formed the foundations for modern Singapore and its success. In 1826, Singapore joined Penang and Malacca to form the Straits Settlements, and soon became Britains most important trading centre. In 1946, Singapore became a separate Crown Colony and was internal self-government in 1959. The first general election was then held and the PAP led by Lee Kuah Yew won an outright majority. In 1963, Singapore, Sabah and Sarawak joined the Federation of Malaya to form Malaysia. Singapore then left the Federation to become fully independent in 1965. The People’s Action Party’s (PAP) total control continued unchallenged until 1981 when the first opposition MP was elected; there are now two elected opposition MPs in Parliament. The PAP still has widespread popular support. The last election took place on the 6th of May 2006. The elections are held every five years from the date of convening Parliament not the holding of elections.
Timeline
1819 Sir Stamford Raffles of British East India Company establishes a trading post on Singapore
1826 Singapore, Malacca and Penang become British colony of the Straits Settlements
1867 Settlement Straits become crown colony of British Empire
1869 The opening of the Suez Canal sees trade increase
1941 In World War II Japan bombs Singapore and in 1942 Singapore falls to Japan and renames it Syonan
1945 Japan defeated and Singapore comes under British military administration
1946 Singapore becomes separate crown colony
1959 Self-government attained with Lee Kuan Yew as prime minister
1963 Singapore joins the Federation of Malaya along with Sabah and Sarawak to form Malaysia
1965 Singapore pulls out of the Federation of Malaysia, at Malaysia’s invitation due to political and ethnic tensions. The territory becomes independent and joins the United Nations (UN)
1967 Singapore is one of the founding members of Association of Southeast Asian Nations (ASEAN)
1971 Last British military forces withdraw from the country
1984 Two opposition MPs are elected into parliament for the first time
1990 Goh Chok Tong becomes prime minister as Lee Kuan Yew stands down after 31 years; he still remains an influential senior minister.
1993 Ong Teng Cheong becomes first directly elected president
1997 Asian financial crisis
1998 Singapore falls into recession for the first time in 13 years due to the Asian financial crisis’ effects
1999 S R Nathan is declared as only candidate eligible to run for president and so becomes president without election
2001 General election landslide for PAP and the Party secure all but two of the 84 seats.
2002 January – Japan, Singapore sign free trade agreement
2003 SARS virus outbreak is declared by Prime Minister Goh Chok Tong as the worst crisis country has faced
2003 Singapore becomes first Asian nation to sign free trade deal with US
2004 Lee Hsien Loong, who the eldest son of former Prime Minister Lee Kuan Yew, is sworn in as Prime Minister
2005 President S R Nathan begins a second six year term
2005 Australia man is executed for drug smuggling, despite high level appeals. This is condemned by Australia’s attorney general as barbaric
2006 Lee Hsien Loong’s ruling People’s Action Party wins general elections which is the viewed by most people as the first real test of the prime ministers popularity
