final singapore[1]

8/8/2019 Final Singapore[1]

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Singapore:Singapore:Past, Prefect, Future?Past, Prefect, Future?


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Flow of presentationIntroductionCase BriefingQuestions and Answers of the caseStrengths of Singapore

Present scenarioKey areasIndia Singapore trade relationsLessons to be learnt by Singapore

Lessons learnt from SingaporeConclusion


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Case Briefing

Unique country in many ways

Capitalist mixed economy

Role of government in thedevelopment of Singapore


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Considering the fact that India and Chinawere recording high growth rates and thefact that this might lead to their reduceddependence on services offered by Singapore, what can the city state do toretain their position as a financial centre?

Question 1


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Answer 1

Singapore is set to project itsmedical wonders

Financial marketderegulation


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Opening of the local bankingsector to foreign competition

Encourage economic

diversification

Increased regional integration

Answer 1


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Singapore was encouraging multinational

companies to use it as a hub with regionalcenters in other countries. How effective issuch a strategy? What may be the dangersof following such a strategy?

Question 2


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Singapore's foreign policyalignment with the US

Competition from otherAsian states

Preferential tax treatment

Control of Singapore Inc

Growing space constraints

Answer 2


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Singapore faces many challenges.

Analyze this challenges and suggestpossible responses to overcome them?

Question 3


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SerialNo

Challenges Steps taken by the government

Effect on theeconomy

Suggestions

1) Heavydependency onthe outside world

None Three times inrecession Should encouragedomestic players toexport abroad.

2) Lack of space Best use of thewhateveravailableresource

One of the bestplanned city withthe bestinfrastructure inthe world

Space is a constraint,but Singapore has leftnot let this to affectthe economy

3) Internationalcriticism

Of late thegovernment has

given somefreedom to thepeople.

As of now noeffect

Now that theeconomy is stable the

government mustgive some amount offreedom to the mediato bring about thetransparency in thecountry.


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SerialNo

Challenges

Steps taken bythe government

Effect on the economy Suggestions

4) Multiculturalpopulation

Government hastaken all the stepsto maintainharmony betweenvarious groups

Except the riots in 1960sthe country has beenquite peaceful

Multi cultural eventsand participation ofthe 3 main ethnicgroups must beencouraged by thegovernment.

5) Water

problem

Government has

set up adesalination plantto reduce thedependency ofwater on Malaysia

The desalination plant

supplies only about 10% of the total demand

The government

must look to initiatemore such measuresor must look forother neighboringcountries whichprovide ate at

cheaper rates.


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Serial No

Challenges

Steps taken bythegovernment

Effect on the economy Suggestions

6) Illegal

activitiesand piracy

Government has

passed manyacts to ban theillegal activitiesas well as harshpunishments

Singapore still continues

to be the transit point ofnarcotic drugs.

Must concentrate on

strengthen theCustoms Act followingthe model of Australia

7) Regionalcompetition

Many newprojects havebeen initiated.

Singapore still remains asthe regional leader butthe position isthreatened by theneighboring countries.

Must focus on thoseareas which are still yetto be exploited by othercountries. Also mustencourage thedeveloping countries to

invest in their economy8) Dubai Islamic banking Many Gulf countries have

started investing inSingapore

Must concentrate moreon investments in theMiddle east countries.


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SerialNo

Challenges Steps taken bythegovernment

Effect on theeconomy

Suggestions

9) Terrorists

target

Stepped as well

as upgraded thesecurity at allnecessary levels

The country has not

had a single terroristattack till date

Must adopt a neutral

role on sensitiveissues son that it doesnot lead to becomingthe soft target ofterrorists.

10) High prices Government hastried to increasethe income ofthe people byrevising theminimumwages.

Prices have relativelygone up and thecompanies are nowconcentrating more onother low costcountries

Must providesubsidies and supportprice for necessaryproducts.

11) IncomeDisparity

Introduce thepreferential tax

The gap between therich and the poor hasgrown over the years.

Must introduce thetax rate for the highincome people andutilize the money tohelp in the uplifment

of the poor people.


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Singapore was criticized for its strict controlson freedom of expression and its humanrights record. While this may have affected

the countrys image, does it affect itscompetitiveness? Would the country havebecome as successful as it is today, if it had a

multi-party system and a freer society?

Question 4


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Acts and restrictions enforced by thegovernment:

Internal Security Act

Heavy restrictions on political

opponents Use of capital punishment extensively

(highest per- capita execution rate)

Restricted freedom of speech andfreedom of press

Multi-ethnic and multi-religiouspopulation

Avoid repetition of1964 and 1969 riots

Answer 4


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No negative effect on competition

GOS has tried to project that one party rule helps ineconomic stability

Multi party rule in the initial days would have led to theincrease in the ethnic conflicts

As the economy has been stabilized, acts have to be relaxed

It can result in a major outbreak if not tackled.

Answer 4


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Intensive future plans

Currency Converter

Politically stable

Negligible strikes and laborproblems

Other Strengths


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Other StrengthsMost clean economy of the

world

Bilateral trade agreements

Arbitration capital of the world

Easiest trade norms andnegligible import duty


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Petroleum refining

Export oriented

production

Shipping industry

Knowledge basedeconomy

Key Areas


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Research and Development(biotech and health care)

Environmental technology

Education (Singapore education)

Islamic finance

Digital cinema exchange / Media hub

Key Areas


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Games Bazaar

BPO activities

International arbitration

Shopping / tourist

destination

Asian culture capital

Key Areas


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India Singapore trade relationsExtensive cultural and commercialrelations

Comprehensive EconomicCooperation Agreement (CECA)

Singapore supports Indias bid tobecome the permanent member of

U.N.


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Singapore also heartily supportedIndia in its war against Pakistan(1965)

8th largest source of investment inIndia and 9th biggest tradingpartner

India Singapore trade relations


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Bilateral tra e et ee t t ec tries is U D 1 illi (2006)

aj r ex rts fr i a re:etr le , e st es a

ac i ery

I ia i a re tra e relati s


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Major imports: Electronic goodsand organic chemicals

Investment projects in India

4th biggest tourist destination

India Singapore trade relations


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Present Scenario

Recession hit thecountry for the third time

The first country in Asiato go into recession


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Dipping Growth rate(2008-09)

GDP growth 1.1 % in 2008-09 asagainst the estimated 5 6 %

Singapore dollar has touched anall time low to 1.8 against the US

$

Present Scenario


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No plans to cut the interest rates

Help the small business to cope up

with the global slow down

Government still determined on itsglobalization plan

Financial deregulation planannounced

Present Scenario


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What Singapore needs to learnThe group think syndrome

Strict government control- Myanmarriots

Water solution-Gulf countries

Piracy-Australia Custom Act

The Singapore media- propagateofficial thinking and giving it a spin


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Singapore Outputs

Well planned city-Chandigarh

Free trade port-Shanghai

Worlds best airport-Kuala Lumpur

Best utilization of resources-UAE

Setting up of industrial parks- Kazakhstanand Hong Kong


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Conclusion

It is required that the Singapore government takesthis era as an opportunity to revive the economy. It is

high time that the government must nowconcentrate on strengthening the domestic economyby motivating the locals to go abroad.

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