Overview of Economy of Singapore Country

Singapore is one of the world’s most prosperous nations. Despite an active parliamentary opposition, it has been ruled by one party, the People’s Action Party. Singapore is a small, heavily urbanised, island city-state in Southeast Asia, located at the end of the Malayan Peninsula between Malaysia and Indonesia. It has a total land area of 719.9 square kilometres. Singapore’s climate is classified as tropical rainforest climate, with no true distinct seasons. Its climate is characterized by uniform temperature and pressure, high humidity and abundant rainfall. Therefore, it is almost always warm and wet.

Singapore is a major manufacturer of electronics and chemicals and operates one of the world’s largest ports. Principal exports include integrated circuits, refined petroleum, and computers. Singapore places great emphasis on high-end manufacturing including semi-conductors and consumer electronic, as well as machinery, transport equipment, and ships. The government is also trying to foster future growth sectors such as, aerospace, precision engineering, and the life sciences including bio technology, medical equipment, and pharmaceutics. Moreover, water is scarce 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’s highly developed free-market economy owes its success in large measure to its remarkably open and corruption-free business environment, prudent monetary and fiscal policies, and a transparent legal framework. 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 is extremely important to Singapore’s economy; the combined value of exports and imports equals 318 percent of GDP. 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. Banking, finance, and insurance also make up a large part of the economy in Singapore. The government has steadily been opening the domestic market to foreign banks, and more than 95 percent of banks operating in Singapore are now foreign owned. The government has also invested in education for decades. Human capital and a skilled workforce contribute to the prosperous economy in Singapore.