Alyssa's Singapore’s Role in Globalization Marker

Category: Globalization

Singapore has experienced remarkable economic growth and diversification since 1960. In addition to enhancing its position as a world trade centre, it has developed powerful financial and industrial sectors. Singapore has the most advanced economy in Southeast Asia and is often mentioned along with other rapidly industrializing countries in Asia, notably South Korea and Taiwan. Singapore's strategic location on major sea lanes and its industrious population have given the country an economic importance in South-east Asia disproportionate to its small size. As Singapore looks to a future increasingly marked by globalization, the country is positioning itself as the region's financial and high-tech centre in competition with other East Asian cities.

Basic economic overview: Singapore’s economy is a highly developed and successful capitalist mixed economy. The Economy of Singapore has always has differed from those of the other Southeast Asian countries as it has never been primarily dependent on the production and export of commodities. Economic development in Singapore has been closely supervised by the Singaporean government, and it has been highly dependent on investment capital from foreign multinational corporations. However, the rationale for extensive government intervention in economic development has weakened. Official policy relies on market forces, privatization of government enterprise, and more support for domestic private businesses. Additionally, greater reliance has been placed on local labor-management negotiations.

GDP growth rate: 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%.

Labor force (composition): As of mid-2007, Singapore had a total labor force of about 2.61 million. The National Trades Union Congress (NTUC), the sole trade union federation, comprises almost 99% of total organized labor. Singapore has enjoyed virtually full employment for long periods of time. Amid slower economic growth in 2003, unemployment rose to 4.6%. As of end-June 2007, the unemployment rate dropped to 2.3%. Much of the unemployment is structural, as low-skill manufacturing operations move overseas. Since 1990, the number of foreign workers in Singapore has increased rapidly to cope with labor shortages. Foreign workers comprise 30% of the labor force; the great majority of these are unskilled workers.

Inflation Rate: 1.00 % (2007)