Short Essay on Singapore Economy

History of Singapore Economy

Singapore is a country which came into being after getting independence from Malaysia in 1965. It is one of the most visited countries of the world making it a tourist destination. Singapore is a hub of different cultures and ethnicities. When this country was officially recognized on the map of the world, it was not as stable as it is now.

Visitors look at a view of the city skyline from the rooftop pool of the Marina Bay Sands resort hotel in Singapore on May 20, 2014. Singapore's trade-reliant economy expanded a seasonally adjusted 2.3 percent quarter-on-quarter the trade ministry said May 20. AFP PHOTO/ROSLAN RAHMAN
Visitors look at a view of the city skyline from the rooftop pool of the Marina Bay Sands resort hotel in Singapore on May 20, 2014. Singapore’s trade-reliant economy expanded a seasonally adjusted 2.3 percent quarter-on-quarter the trade ministry said May 20. AFP PHOTO/ROSLAN RAHMAN

It had a very small market and no international companies or any form of trade. Most of the people were not educated, and that added to the misery. The country did not seem like much at that time but the people knew they had to achieve greatness, and that is what they did. The Singapore government started the Economic Development Board.

Asian and European Economic Ministers and senior officials pose for a group photo with Vietnamese Prime Minister Phan Van Khai (7th-L, 1st raw) prior to the official opening of the third meeting of Asian and European Economic Ministers being held, 11 September 2001 in Hanoi. 1st raw from L to
Asian and European Economic Ministers and senior officials pose for a group photo with Vietnamese Prime Minister Phan Van Khai (7th-L, 1st raw) prior to the official opening of the third meeting of Asian and European Economic Ministers being held, 11 September 2001 in Hanoi.

The aim was to increase foreign investment and to make Singapore a tourist attraction. The board worked hard and over the years the hard work bore fruit. Singapore has one of the strongest economies now and foreign companies continue to increase their investment.

The Trade of Singapore

Trade is an important factor for any country now. It helps maintain good relations with other countries but most of all it helps make the economy strong. The exports and imports increase sales of a country’s products and the people have a greater variety of things to choose from. Singapore is currently the fifteenth largest trading partner of the USA.

Stephen Harper, Indonesia's President Joko Widodo, United Kingdom's Prime Minister David Cameron, India's Prime Minister Narendra Modi, Italy's Prime Minister Matteo Renzi, European Council President Herman Van Rompuy, Argentina's Minister of Economy Axel Kicillof, (back Row L-R) FSB Chairman Mark Carney, International Labour Organization Guy Ryder, IMF Managing Director Christine Lagarde, OECD Secretary-General Angel Gurria, Senegal's President Macky Sall, Singapore's Prime Minister Lee Hsien Loong, New Zealand's Prime Minister John Key, Mauritania's President Mohamed Ould Abdel Aziz, Myanmar's President U Thein Sein, World Bank Group President Jim Yong Kim, WTO Director-General Roberto Azevedo and United Nations' Secretary-General Ban Ki-moon pose for a group photo during the G20 Leaders Summit on November 15, 2014 in Brisbane, Australia. World leaders have gathered in Brisbane for the annual G20 Summit and are expected to discuss economic growth, free trade and climate change as well as pressing issues including the situation in Ukraine and the Ebola crisis.
Stephen Harper, Indonesia’s President Joko Widodo, United Kingdom’s Prime Minister David Cameron, India’s Prime Minister Narendra Modi, Italy’s Prime Minister Matteo Renzi, European Council President Herman Van Rompuy, Argentina’s Minister of Economy Axel Kicillof, (back Row L-R) FSB Chairman Mark Carney, International Labour Organization Guy Ryder, IMF Managing Director Christine Lagarde, OECD Secretary-General Angel Gurria, Senegal’s President Macky Sall, Singapore’s Prime Minister Lee Hsien Loong, New Zealand’s Prime Minister John Key, Mauritania’s President Mohamed Ould Abdel Aziz, Myanmar’s President U Thein Sein, World Bank Group President Jim Yong Kim, WTO Director-General Roberto Azevedo and United Nations’ Secretary-General Ban Ki-moon pose for a group photo during the G20 Leaders Summit on November 15, 2014 in Brisbane, Australia. World leaders have gathered in Brisbane for the annual G20 Summit and are expected to discuss economic growth, free trade and climate change as well as pressing issues including the situation in Ukraine and the Ebola crisis.

Singapore’s main exports include petroleum items, food/beverages, chemicals, textile/garments, electronic components, telecommunication apparatus, and transport equipment. The major imports are aircraft, crude oil and petroleum products, electronic components, radio and television receivers/parts, motor vehicles, chemicals, food/beverages, iron/steel, and textile yarns/fabrics. The reason for such successful trade is that Singapore has always made trade agreements with different countries and that has helped it in reducing trade taxes and costs.

It has free trade agreement with ASEAN and pays reduced import duty to some other countries. Singapore has always dealt fairly in trade and commerce and is one of the fairest trade countries. This is because the government of Singapore is corruption free.

A dealer displays Singapore dollar notes at a money changer in Singapore on April 10, 2008. Singapore's de facto central bank said it had further tightened monetary policy in a bid to address a sharp rise in inflation. AFP PHOTO/ROSLAN RAHMAN
A dealer displays Singapore dollar notes at a money changer in Singapore on April 10, 2008. Singapore’s de facto central bank said it had further tightened monetary policy in a bid to address a sharp rise in inflation. AFP PHOTO/ROSLAN RAHMAN

When a country is run by people who have no history of corruption, then naturally the international relations will also be corruption free. The governments of other countries build a relationship of trust with that of Singapore and hope to maintain this relationship in the future.

The Infrastructure of Singapore

What makes any country’s economy strong is its infrastructure. The infrastructure of the country provides opportunities for trade and development. The highly technological and advanced infrastructure of Singapore has attracted many multinational companies to open offices and factories in the country. The road and transportation network is highly efficient which eases the transportation of goods from one place to another.

Container ships are unloaded at the Port of Singapore on February 1, 2012 in Singapore. The Port of Singapore is the world's businest port in terms of total shipping tonnage moving through it, and second only to Shanghai in terms of total cargo tonnage moved. The port is an essential part of Singapore's economy, responsible not only for incoming and outgoing freight, but also for processing of natural resources such as crude oil refinement. It connects to 600 other ports in 123 countries.
Container ships are unloaded at the Port of Singapore on February 1, 2012 in Singapore. The Port of Singapore is the world’s businest port in terms of total shipping tonnage moving through it, and second only to Shanghai in terms of total cargo tonnage moved. The port is an essential part of Singapore’s economy, responsible not only for incoming and outgoing freight, but also for processing of natural resources such as crude oil refinement. It connects to 600 other ports in 123 countries.

The electricity supply and low cost of fuels is also another factor which encourages the foreign world to invest in such a country. It would be fair to mention the highly skilled labor and workers of Singapore. They have played an important part in building the country from the barren land it once was to a beautiful place it is now.

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