SingaporeRise to prominence in the world market

Where is Singapore?

Population: 5 Million

Area: 710 km²

Density: 7,540/km2

GDP Per capita: $61,046

Diverse & ethnic 75% Chineseminorities of Malays, Indians, and Eurasians.

Four official languages: English, Malay, Chinese, and Tamil

Country Profile

Success• 4th leading financial centre

• 1 of the 5 busiest ports

• 3rd-highest per capita income in the world

• world's largest oil-rig producer

• one of the original Four Asian Tigers

• only Asian country to receive AAA credit ratings from all three major credit rating agencies: Standard & Poor's, Moody's, and Fitch.

• High in international rankings:education, healthcare, economic competitiveness

• Least corrupt countries in the world [Transparency International}

EconomyHighly developed market economy --- Extended entrepôt trade 14th largest exporter & 15th largest importer in the world

Highest trade-to-GDP ratio (407.9%) importance of trade

Large amount of FDI location, corruption-free environment, skilled workforce, low tax rates and advanced infrastructure.

Economy SectorsExports and refining imported goods, Manufacturing (27.2%)

electronics, petroleum refining, chemicals, mechanical engineering and biomedical sciences sectors

Tourism legalised gambling in 2005 and allowed two casino resorts (called Integrated Resorts).

Medical tourism hub

About 50 years ago…

✕

From 3rd world to

First

Government People's Action Party has won every election since self-government began in 1959.

Executive power rests with the Cabinet of Singapore, led by the Prime Minister

Mr. Lee Kwan Yew

Effective Governance

Key historical Eventsfounded in 1819 by Sir Stamford Raffles

The British obtained sovereignty over the island in 1824 - one of the British Straits Settlements in 1826.

Opening of the Suez Canal in 1869

May 1959 elections, the People's Action Party won a landslide victory. Singapore became an internally self-governing state within the Commonwealth and Lee Kuan Yew became the country's first Prime Minister.

Occupied by the Japanese during World War II, Singapore declared independence from the United Kingdom in 1963

Achieved Independence in 1965

Since then, Singapore has developed rapidly

History – 60sGNP per capita < US$320 3rd -world nation with poor infrastructure and limited capital. Low-end commerceNo direct foreign investment.

Jurong Industrial Estate

Singapore Economic Development Board (EDB) establishedStart of Singapore’s industrialisation programme (labour-intensive industries)

Capital and technology-intensive projects from companies such as Shell Eastern Petroleum and the National Iron and Steel Mills.

New issues had to be tackled - lack of raw resources Solution: develop its export-oriented industries

History – 70sManufacturing more sophisticated.

new investments particularly in the electronics sector and product diversification, enhanced export performance in spite of a global recession

MNCs began R&D activities in Singapore

More EDB offices were set up in Europe, USA and Asia

world recession in 1975 - economy remained nimble and flexible

EDB pushed for more industrial projects and manufacturing eventually became the largest sector in the economy surpassing trade.

History – 80sEDB co-establishing institutions of technology with Japan, Germany and France

Science Park to stimulate R&D activities by the private sector

high-wage policy - away from labour-intensive industries and to high-technology industries

wage bills swelled, world economic slowdown Singapore recession

to restore Singapore’s competitiveness –flexi-wage system

Total Business Centre, EDB set out to attract international service corporations in the financial, educational, lifestyle, medical, IT and software sectors;

local enterprises Small Enterprise Bureau in 1986

History 90scompanies moving up the value chain and intensifying their use of technology

service sector became the engine for growth.

Shifted focus from manufacturing to strengthen the new key industries, namely chemicals, electronics and engineering.Leveraging leadership in these industries to develop biomedical sciences

Singapore’s economic structure become more diversified and balancedwide range of businesses particularly in higher value-added activities.

welcoming talent from around the world to augment the local skill pool and subsequently, become a hub of skilled manpower and headquarters for decision-making.

History - Millennium2006, > $13 billion to promote R&D over the next five years as part of its goal to increase gross expenditure on R&D from 2.25 per cent to 3 per cent of gross domestic product (GDP)

The National Research Foundation

To further facilitate Singapore becoming an information-led economy, a strong Intellectual Property (IP) protection and enforcement environment was put in place - resulting in the city’s ranking as the first in Asia for IP protection today.

strong and established network of public and private sector R&D centres which currently work closely together with companies to commercialise new technologies, processes and products.