ECONOMIC GROWTH &

DEVELOPMENT IN
SINGAPORE.
GROUP MEMBERS:
Sabahat Ahmed.
Ayesha Haroon.
CLASS & SECTION:
BBA- 5B
COURSE INSTRUCTOR:
Sir Liaqat Ali.
SINGAPORE
GEOGRAPHICAL
LOCATION:
LOCATION: Southeast Asia.
AREA: 719.1 km²
POPULATION: 5.607 million
(2016)
BORDER: The Malaysia–Singapore
border is an international
maritime border between the Southeast
Asian countries of Malaysia, which lies to
the north of the border, and Singapore to the
south.
CLIMATE: Weather and Climate in Singapore. Due to its geographical
location and maritime exposure ,Singapore's climate is
characterized by uniform temperature and pressure, high
humidity and abundant rainfall. The average temperature is
between 25 degrees Celsius and 31 degrees Celsius.
Stamford Raffles founded colonial Singapore in 1819 as a trading post of the
British East India Company.
During the Second world war Singapore was occupied by Japan.
It gained independence from the UK in 1963 by federating with other former
British territories to form Malaya.
but separated two years later over ideological differences, becoming a
sovereign nation in 1965.
 Singapore gained independence as the Republic of Singapore on 9 August
1965 .
ETHINIC AND RELIGIOUS
COMPOSITION.
 EHINIC GROUPS:
Singapore is a multiracial and multicultural country with
ethnic Chinese (76.2% of the citizen population),
indigenous Malays (15.0%), and ethnic Indians (7.4%) making up the
majority of the population.There are also Eurasians in Singapore.
 OFFICIAL LANGUAGES:
There are four official languages: English, Malay, Mandarin and Tamil
 RELIGIONS:
The main religions of Singapore
are Buddhism and Daoism, Islam, Christianity, and Hinduism, with a
significant number who profess no religion.
 POLITICAL STRUCTURE &
INTEREST GROUPS:

 The politics of Singapore takes the form of a

parliamentary representative democratic
republic whereby the President of Singapore is the head
of state, the Prime Minister of Singapore is the head of
government, and of a multi-party system.
STATUS AT INTERNATIONAL LEVEL:
 The Global Competitiveness Report 2016-2017 assesses the
competitiveness landscape of 138 economies, providing
insight into the drivers of their productivity and prosperity.
 Singapore and the United States remain the three world’s most
competitive economies.
 The economy of Singapore is a highly developed free-market
economy.
 Singapore's economy has been ranked as the most open in the
world, 7th least corrupt.
 As part of its role in the United Nations, Singapore held a
rotational seat on the UN Security Council from 2001 to 2002.
OVERVIEW OF THE
ECONOMY
 AGRICULTURE SECTOR
 Agriculture – products: rubber, copra, fruit,
vegetables; poultry, eggs, fish, orchids, ornamental
fish.
 Singapore produces mainly leafy vegetables and
beansprouts, all for local consumption.
 As small country, Singapore has limited agricultural
land and domestic food production.
 Agriculture contributes less than 1% of the
country’s GDP per capita.
 Agriculture contributes 1.3% of labor
force by occupation in 2016.
INDUSTRIAL SECTOR
 The contribution in GDP of industrial sector
is 26.6%
 The major industries include electronics
(semi-conductors, precision-engineering,
etc.), pharmaceutical, chemicals, construction,
and ship-building,
 In the fourth quarter, manufacturing output
rose by 11 per cent, supported largely by
robust growth in the electronics and
biomedical manufacturing clusters.
 For the whole of 2016, manufacturing output
increased by 3.6 per cent.
Items Latest Latest % Previous %
Period Data Change Period Change
(Y-o-Y) 1/ Data (Y-o-Y) 2/

Manufacturing

Industrial Production Index (2015=100) Oct-17 117.1 14.6 123.4 14.4

Total Output 3/ 4/ S$m 2016 273,533.2 -3.9 284,691.2 -7.2

Value Added 4/ S$m 2016 70,043.7 1.5 69,001.5 8.2

Persons Employed 4/ '000 2016 384.7 -4.6 403.3 -3.2

Remuneration 4/ S$m 2016 20,995.5 -3.1 21,678.0 -0.6

Change in Unit Labour Cost of % 2016 107.3 -4.5 112.3 5.5

Manufacturing
 SERVICE SECTOR
 The contribution in GDP of service sector is
73.4%
 Productivity of the manufacturing, Transportation
& storage, wholesale & retail trade, finance &
insurance and information & communications
sector rise other service industries were
declined.
 Main industries under the services sector, such as
wholesale and retail, financial and business
services, and tourism are expected to witness
strong growth.
 .You can assume that every major bank
and investment firm from the US or
Europe operating in Asia would be
headquartered in Singapore.
 NATURE OF EXPORTS, IMPORTS
BY DESTINATION
 Top five countries to which Singapore exported in 2015 are below, along
with the percent of total exports that went to that country:
1. Singapore exports to China worth US$ 47,708 million, with a partner share of
13.76 percent.
2. Singapore exports to Hong Kong, China worth US$ 39,666 million, with
a partner share of 11.44 percent.
3. Singapore exports to Malaysia worth US$ 37,764 million, with a partner
share of 10.89 percent.
4. Singapore exports to Indonesia worth US$ 28,345 million, with a partner
share of 8.18 percent.
5. Singapore exports to United States worth US$ 23,225 million, with a partner
share of 6.70 percent.
 Top five countries from
which Singapore imported goods in 2015 are below,
along with percent of total imports that came from the
country :
 Singapore imports from China worth US$ 42,135
million, with a partner share of 14.20 percent.
 Singapore imports from United States worth US$
33,336 million, with a partner share of 11.23 percent.
 Singapore imports from Malaysia worth US$
33,057 million, with a partner share of 11.14 percent.
 Singapore imports from Other Asia, nes worth
US$ 24,681 million, with a partner share of 8.32
percent.
 Singapore imports from Japan worth US$ 18,596
million, with a partner share of 6.27 percent.
 The top five exported HS 6 digit level products to
world by Singapore along with trade value are:
 Singapore exported Monolithic integrated circuits, nes ,
worth US$ 73,307,448.00 million.
 Singapore exported Petroleum oils, etc, (excl. crude);
preparation , worth US$ 42,006,680.25 million.
 Singapore exported Transmission apparatus, for
radioteleph incorpo , worth US$ 6,141,699.54 million.
 Singapore exported Aircraft parts nes , worth US$
5,927,667.36 million.
 Singapore exported Other medicaments of mixed or
unmixed products, , worth US$ 4,844,868.91 million.
MAGNITUDE AND TRENDS OF
ECONOMIC AND SOCIAL
INDICATORS
 The Gross Domestic Product (GDP) in Singapore
expanded 5.2 % YoY in Sep 2017, following a
growth of 2.9 % in the previous quarter.
 Real GDP Growth YOY data in Singapore is
updated quarterly, available from Mar 1976 to Sep
2017, with an average rate of 7.4 %.
 The data reached an all-time high of 19.0 % in Jun
2010 and a record low of -8.8 % in Mar 2009.
 GDP Per Capita in Singapore reached 52,962.0
USD in Dec 2016.
 Its Gross Savings Rate was measured at 45.8 % in
Dec 2016. , compared with 47.0 % in the previous
year.
 2012 2013 2014 2015 2016

Population (million) 5.3 5.4 5.5 5.5 5.6

Singapore Economy Data

GDP per capita (USD) 54,484 56,033 56,452 53,626 52,920

GDP (USD bn) 289 303 309 297 297

Economic Growth (GDP, annual variation in 3.9 5.0 3.6 1.9 2.0
%)
Consumption (annual variation in %) 3.7 3.4 2.4 4.6 0.6

Investment (annual variation in %) 8.2 5.7 -1.1 1.1 -2.5

Manufacturing (annual variation in %) 0.3 1.7 2.7 -5.1 3.7

Unemploymen 2.0 1.9 2.0 1.9 2.1
t Rate
Fiscal Balance 1.6 1.3 0.1 -1.0 1.3
(% of GDP)
Public Debt (% 107 103 99.2 103 113
of GDP)
Money 7.2 4.3 3.3 1.5 8.0
(annual
variation in %)

Inflation Rate 4.3 1.5 -0.1 -0.6 0.2

(CPI, annual
variation in %,
eop)
Inflation Rate 4.6 2.4 1.0 -0.5 -0.5
(CPI, annual
variation in %)

Inflation (PPI, 0.5 -2.7 -3.3 - -

annual
variation in %)
Exports (USD 443 448 444 380 361
billion)

Imports (USD 372 373 362 297 279

billion)
POVERTY
 Families jumped in poverty 43.45% in the three
years between 2012 and 2015, from 20,572
families to 29,511 families.
 Elderly above the age of 60 are the most afflicted
with a 74.32% jump.
 Poverty among younger Singaporeans – aged
between 15 and 34 – has also worsened with
41,500 earning below S$1,000 a month as of June
2016.
 . There is no Minimum Wage and low income
jobs, except for construction workers and
domestic helpers, are largely taken by
Singaporeans.
INCOME INEQUALITY
 Income inequality in Singapore last year was
the lowest in a decade.
 The Gini coefficient, which measures income
inequality and assigns lower scores to more
equal societies, went down from 0.463 in
2015 to 0.458 in 2016.
 At the same time, the median monthly
income for employed households grew from
$8,666 in 2015 to $8,846 in 2016.
 That is a 2.1 per cent rise in nominal terms,
or a 2.6 cent rise in real terms .
Literacy rate
 In Singapore, according publishes UNESCO, an
adult literacy rate of 97.05%. While the male
literacy rate is 98.73%, for females is 95.45%.
 In comparison with other countries is number
45º in the ranking of literacy rate.
 The literacy rate, has increased in last years.
 Adult literacy Adult literacy
Adult literacy Adult literacy Adult literacy Adult literacy
Date rate 15-24 rate 15-24
rate female rate male rate rate 15-24
female male

2016 95.45% 98.73% 97.05% 99.94% 99.91% 99.93%

2015 95.19% 98.56% 96.83% 99.84% 99.74% 99.78%

2014 94.91% 98.61% 96.72% 99.90% 99.90% 99.90%

2013 94.64% 98.54% 96.55% 99.90% 99.90% 99.90%

2012 94.36% 98.47% 96.37% 99.89% 99.90% 99.89%

2011 94.07% 98.39% 96.19% 99.88% 99.89% 99.89%

2010 93.77% 98.04% 95.86% 99.77% 99.74% 99.75%

HUMAN DEVELOPMENT INDEX
 Singapore’s HDI value for 2015 is 0.925
 positioning it at 5 out of 188 countries and
territories.
MORTALITY RATES – 2016
Life Expectancy 84.95 Years Rank: 3
· Female 87.78 Years Rank: 3
· Male 82.31 Years Rank: 2
Deaths Per 1000 3.45 Per 1,000 Rank: 217
Infant Mortality Rate 2.43 Per 1,000 Births
Rank: 226
· Female 2.23 Per 1,000 Births
Rank: 226
· Male 2.61 Per 1,000 Births
Rank: 225
Mortality Rate - Age 1-4 0.61 Per 1,000 Births
Rank: 217
· Female 0.74 Per 1,000 Births
Rank: 188
· Male 0.49 Per 1,000 Births
Rank: 225
Mortality Rate - Under 3.04 Per 1,000 Births
Age 5 Rank: 226
· Female 2.97 Per 1,000 Births
Rank: 225
· Male 3.10 Per 1,000 Births
Rank
APPLICATIONS OF GROWTH
DEVELOPMENT THEORIES
 Linear stage of growth model:
Rostow’s stages of economic modernization.
 Singapore as a traditional society.
 Singapore as pre take-off stage.
 Singapore as take-off.
 Singapore as drive to maturity.
 Singapore as mass to consumption stage.
 Market fundamentalist.
Free economy.
 Solow growth model.
 The dualistic development thesis
RECOMMANDATION:
 Singapore have to decrease their poverty
rate.
 Government motivate Singaporean to get
higher education.
CONCLUSSION:
 Singapore has a highly developed and
successful free-market economy.
 It enjoys a remarkably open and
corruption-free environment, stable
prices, and a per capita GDP higher than
that of most developed countries.
 Income inequality in Singapore ,went
down from 0.463 in 2015 to 0.458 in
2016.
CONCULSSION:
 Singapore has come out second in the
rankings of The Global Information
Technology.
 The contribution in GDP of service
sector is 73.4%
 Singapore’s business-supportive
environment and political stability has
attracted many multi-national banking and
investment firms.