Republic of the Philippines

Eastern Visayas State University

Tacloban City, Leyte

MICROECONOMICS

Submitted by:

Ricardo D. Gloria Jr.

Submitted to:

Ms. Maybelle Recote, LPT

 “Singapore: The Secret to Success”

By: Ricardo D. Gloria Jr.

Source: “The Economy of Singapore.” The Chinese Education System | InterNations,

www.internations.org/singapore-expats/guide/29457-economy-finance/the-economy-of-

singapore-16045.

Zambia GDP - per Capita (PPP) - Economy,

www.indexmundi.com/singapore/economy_profile.html.

Summary:

Singapore has a highly developed and successful free-market economy. It enjoys

a remarkably open and corruption-free environment, stable prices, and a per capita

GDP higher than that of most developed countries. Unemployment is very low. The

economy depends heavily on exports, particularly of consumer electronics, information

technology products, medical and optical devices, pharmaceuticals, and on its vibrant

transportation, business, and financial services sectors.

The economy contracted 0.6% in 2009 as a result of the global financial crisis,

but has continued to grow since 2010. Growth in 2014-17 was slower than during the

previous decade, at under 3% annually, largely a result of soft demand for exports amid

a sluggish global economy and weak growth in Singapore’s manufacturing sector.

 The government is attempting to restructure Singapore’s economy by weaning its

dependence on foreign labor, addressing weak productivity growth, and increasing

Singaporean wages. Singapore has attracted major investments in advanced

manufacturing, pharmaceuticals, and medical technology production and will continue

efforts to strengthen its position as Southeast Asia's leading financial and technology

hub. Singapore is a member of the Regional Comprehensive Economic Partnership

negotiations with the nine other ASEAN members plus Australia, China, India, Japan,

South Korea, and New Zealand. In 2015, Singapore formed, with the other ASEAN

members, the ASEAN Economic Community.

Generally, the economy in Singapore has a very good reputation. Its strong

growth has earned the small country the nickname “Asian tiger”. However, since the

economy of Singapore is dependent on exports, it has been affected by the slowdown

of the manufacturing sector.

Making the most of geography, as far as the economy of Singapore, the tiny

state has made the best of some unfavorable conditions. Singapore has a small surface

area of around 700 km2. It lacks both arable land and natural resources, like fuels,

metals, or minerals. It’s hardly surprising that only 1.3% of the labor force is employed in

agriculture, and the primary sector doesn’t make a significant condition to the GDP.

However, Singapore has one distinct economic advantage: the location. The 190

kilometers of coastline feature natural deep-water ports, and the island is situated along

important shipping routes in Southest Asia too. Trade and commerce are key parts of
the economy. The government has also invested in education for decades. Human

capital and a skilled workforce contribute to the prosperous economy in Singapore.

The State planned of its future manufacturing, as mentioned above, the primary

sector barely plays a role in the Singaporean economy. There is an agribusiness park

where some foodstuffs are produces, and other agricultural products include orchids for

horticulture or ornamental fish.

The manufacturing sector is much more significant. About 20% of Singapore’s

GDP comes from industry, and the secondary sector employs 15% of the workforce.

The petrochemical industry in particular is very important for the local economy; the

country imports a lot of crude oil for refined petroleum products.

Singapore places great emphasis on high-end manufacturing including semi-

conditions and consumer electronics, as well as machinery, transport equipment, and

ships. The government is also trying to foster future growth sectors as aerospace,

precision ebgineering, and the life sciences including bio technology, medical

equipment, and pharmaceutics. There is a huge overlap with the service industry, which

caters to medical tourists and the needs of an aging population.

Singapore’s business-friendly environment has not only encouraged investment

in manufacturing; the service sector drives the economy. It provides jobs to 80% of

workers, and creates over 75% of the gross domestic product.

Trade, shipping, and logistics are essentials industries. The Port of Singapore is

the one of the busiest cargo ports in the world: the country has a flourishing
import/export trade with China, Hong Kong, Indonesia, Japan, South Korea, Malaysia,

Saudi Arabia, and the US.

In general, the Singaporean government favors globalization and free trade.

Import tariffs are low to non-existent, and the tiny state is an active member of NATO,

ASEAN, and other multinational trade organizations. It has entered into many free trade

agrrements, and in 2015 became the first ASEAN country to sign a Free Trade

Agreement (FTA) with the European Union.

Banking, finance, and insurance also make up a large part of the economy in

Singapore. There is a reason why the country is sometimes called “the Switzerland of

Asia”- Singapore’s CBD has made a name for itself when it comes to wealth

management.

Not only that, the State’s investing in the future, its pro-trade environment and

commitment to free trade have created and easy and efficient place to do business. Its

investment in infrastructure projects and new industrial parks, and growing reputation as

a high tech research and development hub provides more opportunities for the near

future.

As well as being a good place for business, expats have long been attracted to

the city-state for its safe environment and high standard of living. There are, however,

pronounced financial inequalities among the Singaporean population.

Singapore has had to cope with increasing competition from regional emerging

markets and the demographic challenge of an aging society. Above all, its reliance on

exports has proved to be a burden in times of global economic uncertainty. Both in 2001
and 2009, the economy of Singapore contracted by 1-2% after the worldwide financial

crisis.

While the economy bounced back each time — it grew by nearly 15% in 2010 —

growth has declined over the past six years. The GDP peaked in 2014, but has now

slowed to a growth of about 2% a year. Economists, however, are cautiously optimistic,

predicting a 3% annual growth in GDP by 2018.

In the immediate aftermath of the recession, Singapore struggled with high

inflation rates. From over 5% in 2011, they have now managed to reduce this to just 1%

in 2016. Unemployment rates have remained mostly stable since 2007, averaging at

2%.

The small country has been economically successful for the past years.

Singapore has been doing business great compared to other countries in Asia. They

even have a cleaned city that makes the people want to visit such country. They even

welcome the tourist well and provide the best tourist attraction or destination that totally

melt the hearts to anyone who stayed in the state.

Reaction/Critique:

Reading the facts above, Singapore is truly an amazing State. The strategic

ideas they have practiced are intelligently done right. The government just hit the right

road in leading its economic success. It has been uttered that people in the said country

have good jobs and is working real hard.

 True enough, the time I visited Singapore, I witnessed the beauty of its country. I

was able to roam around the best tourist spots in this tiny city and definitely it would give

you a stress-free because of its fascinating locations that was perfectly made for

tourists. I could not take my eyes off because the place really amused you and the more

gives you an idea of visiting again for the second time around. The cleaned city gives

you fresh air and the smiles of the Singaporean made you comfortable to explore more

of its city and their local traditions.

I am always rooting for Singapore’s success even before and up until now. I wish

to visit there again. The people in the country were very disciplined, specially in work

ethics that I think it is the reason why they are so successful for over a decade now.

This country is truly an inspiration.

I have learned some of their traits, which are to be honest, appreciative and

responsible. These should be the reason why their country, keeping the goals annually.

Not to mention those OFW’s who also imparted their effort to get the best in Singapore,

but these people are heroes too.

I am of hope that we can develop more of our resources here in the Philippines.

We just need to know more of the basics and I know we are going there. Our economy

now is developing and not just like the other country in Asia. I am still proud though. We

became a more discipline now than before and our government is more alert since the

post of our recent President Rodrigo Duterte. This too shall be gradual and will definitely

improve our economy in real time soon.

 I would have recommended Singapore to be your first country to visit in. The

warm welcomes of Singaporean people are of help giving you the presumption not to be

unease in their country. Even Filipinos who work there have confessed how beautiful

country is. The State is expensive when it comes to food, lodging and even

transportation; but none of those matters because it is all worth it.

Singapore has been very proud of its doings for they really reap the benefits of

their labor. They will always be on top of Asia’s if such way of handling in government is

maintained. This tiny country should be rewarded for being the most developed country

in Asia and should inspire other countries and make one to be capable of achieving a

developing economy.

To recapitulate everything, Singapore’s secret to success has become a legend

since time immemorial. And I am truly inspired by the locals and how they push hard to

acquire this achievement. Travel and understand how different countries reacts on

different societies would literally give you more of an idea you can imagine. Hard work is

genuine and truly works after all.