Economy of Singapore

2019

Economy of Singapore 2
Executive Summary
Singapore is a big financial hub of Asia, which has a good reputation as highly developed free
market economy. GDP of Singapore grew 2.9% in 2018 and predictable to grow 2.5% in 2019
and 2.7% in 2020. As per expectation, Singaporean economy falls to 1.6% in 2019 which will
affect the Singaporean business development in many ways. The economy of Singapore is
dependent on trade, electronics, finance, petrochemicals, and business services. Singaporean
economy is extremely industrialized.
This report describes about the how Singaporean enterprises and government respond to the
changing economic conditions should. Economic challenges involve fewer exports due to the
U.S.-China trade war, falling international demand for electronics (13.5% of exports), a covering
building sector, and a strong fiscal policy. Annual average unemployment rate of Singapore
reached 2.0% in 2018 and is predictable to slightly reduce at 1.9% in 2019 and 2020.
This report also highlights that how innovation, technology and productivity promote
international business and trading. In the changing Singaporean economy, government and
enterprises should try different ways, plans and strategies to develop the business and trading
which is helpful for growth of economy.

Economy of Singapore 3
Contents
Introduction.................................................................................................................... 4
How should enterprises respond to the coming Singapore’s changing economic condition...................4
Increasing productivity overall......................................................................................... 5
Explore new markets..................................................................................................... 5
Joint Ventures with multinational companies........................................................................5
How should Government respond to the coming Singapore’s changing economic condition.................6
No change to economic openness...................................................................................... 6
Support Internationalizing............................................................................................... 6
Tax reforms and make changes in policies...........................................................................7
How do productivity and innovation promote international trading?..............................................7
Transform itself into a global e-commerce hub.....................................................................8
Setup a website for clients easily to use online transactions......................................................8
Use cloud service.......................................................................................................... 8
Conclusion..................................................................................................................... 9
References................................................................................................................... 10

Economy of Singapore 4
Introduction
Singapore’s economy has a good status. The economy of Singapore has second-ranked in 2019
regional ranking index. Singapore’s economy is a free- market highly established economy. The
economy of Singapore is a standout amongst the most stable countries. It has high government
revenue and a reliably positive overflow. In 2019 index, the overall score of Singapore’s
economy is hiked by 0.6 points, with increment in scores for trade independence and government
respectability outpacing unassuming decreases in labor opportunity and property rights.
Singapore is positioned second among 43 nations in the Asia–Pacific area, and its general score
is well over the regional and world centers. (Anon., 2019)
The economy of Singapore has experienced very fast development and growth. A recent survey
of MAS (Monetary Authority of Singapore) shows that when trading problems between China
and the United States will be resolved, then it will be clear more about 2019 economic growth of
Singapore. In 2019, the growth of Singapore’s economy has dropped from 3.1 percent in 2018 to
between 1.5 and 2.5 percent in 2019. Singapore's GDP Growth Rate averaged 6.73 percent from
1975 until 2019, reaching an all-time high of 36.10 percent in the first quarter of 2010 and a
record low of -13.40 percent in the fourth quarter of 2008. The economy of Singapore is
depending on the main manufacturing sector because it contributes to 20%-25% of the country’s
annual GDP. (BURINSKIENE, 2013)
How should enterprises respond to the coming Singapore’s changing economic condition
As of 2017, the Singaporean economy is a high-income economy with US$54,530 gross national
income per capita. More than 2, 00,000 enterprises are working in Singapore and every
enterprise standing at different condition. Every enterprise has its own challenges and
opportunities. The economy of Singapore is dependent on 160, 000 micro enterprises, 30,000
small enterprises, 8,000 medium enterprises, and 2,000 large enterprises. The overall growth of
the Singapore economy was 3.2% in 2018. GDP rose by 2.9% in 2018 and is estimated to rise by
2.5% in 2019 and 2.7% in 2020. In the changing economy, every enterprise’s response will be
different.