Economy of Singapore

Economy Of Singapore

Singapore has a highly developed and successful free-market economy. It has an open, pro-business environment, relatively corruption-free and transparent, stable prices, low tax rates (14.2% of GDP) compared to other developed economies, and one of the highest per-capita gross domestic products (GDP) in the world. Its innovative yet steadfast form of economics that combines economic planning of Singapore Economic Development Board with free-market has given it the nickname the Singapore Model.

Exports, particularly in electronics and chemicals, and services including the posture that Singapore is the regional hub for wealth management (and the opening of the city state's first casino in 2010 ) provide the main source of revenue for the economy, which allows it to purchase natural resources and raw goods which it does not have. Moreover, water is a scarcity in Singapore therefore water is defined as a precious resource in Singapore along with the scarcity of land to be treated with land fill of Pulau Semakau. Singapore has limited arable land that Singapore has to rely on the agrotechnology park for agricultural production and consumption. Human Resource is another vital issue for the health of Singaporean economy. Singapore has an offshore joint-venture industrial park with People's Republic of China in Suzhou as Suzhou Industrial Park.

Most companies in Singapore are registered as private limited-liability companies (commonly known as "private limited companies"). A private limited company in Singapore is a separate legal entity, and shareholders are not liable for the company's debts beyond the amount of share capital they have contributed.

Singapore could thus be said to rely on an extended concept of intermediary trade to Entrepôt trade, by purchasing raw goods and refining them for re-export, such as in the wafer fabrication industry and oil refining. Singapore also has a strategic port which makes it more competitive than many of its neighbours in carrying out such entrepot activities. The Port of Singapore is the busiest in the world, surpassing Rotterdam and Hong Kong. In addition, Singapore's port infrastructure and skilled workforce, which is due to the success of the country's education policy in producing skilled workers, is also fundamental in this aspect as they provide easier access to markets for both importing and exporting, and also provide the skill(s) needed to refine imports into exports.

On 14 February 2007, the Singapore government announced that economic growth for the whole year of 2006 was 7.9%, higher than the originally expected 7.7%. Singapore's unemployment rate is around 2.2% as of 20 February 2009. As of 8 August 2010, Singapore is the fastest growing economy in the world, with a growth rate of 17.9% for the first half of 2010.