Singapore Economy

Singapore’s far-sighted economic policies have helped to transform the Singapore

economy into an Asian powerhouse. Exciting developments such as the
integrated resorts will continue to change the face of the Republic.

A snapshot of the Singapore economy in 2007:

US $222.7
GDP-purchasing power parity billion

GDP-real growth rate 7.5%

GDP per-capita (purchasing power parity) US $48,900

24.4% of
Investment (gross fixed)
the GDP

Industrial Production Growth Rate 5.6%

US $450.6
Exports
billion
US $396
Imports
billion

Rate of Inflation 4.4%

 Singapore Economy

• The Singapore economy is an example of a vibrant free-market

economy that is developing at a rapid pace.

• Singapore’s economy is heavily dependent on export activities.

• Singapore government has invested heavily in diversifying the

economy.

• The government of Singapore follows a particular policy to promote

savings and investment in the country.

• Singapore has one of the busiest seaports in the world and is used
for both import and export activities.
 Structure of the Economy
Different policy initiatives are being undertaken for diversifying the
economic base of Singapore
The service sector account for around two thirds of the value added today.
Value added by services as percentage of total GDP is estimated at 65
percent in 2003.
Value added by industries as percentage of total GDP is estimated at 34.9
percent in 2003. The manufacturing sector has retained its position as the
single largest sector in the economy.
The gross capital formation as a percentage of total GDP has increased to
18.3 percent in 2004 in comparison to 14.8 percent in the previous year.
Index of Economic Freedom
Business Freedom - 97.8%

• Overall freedom to start, operate, and close a business is strongly protected

• Starting a business takes an average of five days compared to the world average of
43 days.

Trade Freedom - 90%

• Singapore’s tariff rate was zero percent in 2005.

Freedom from Government - 93.9%

Total government expenditures, including consumption and transfer payments, are low. In
the most recent year, government spending equaled 14.4 percent of GDP.

Investment Freedom - 80%

Foreign and domestic businesses are treated equally and nearly all sectors are open to 100
percent foreign ownership.

Freedom from Corruption - 94%

Corruption is perceived as almost nonexistent. Singapore ranks 5th out of 163 countries
in Transparency International's Corruption Perceptions Index for 2006