Singapore
has a highly developed market-based economy, which historically
revolves around extended entrepot trade. Along with Hong
Kong, South Korea and Taiwan, Singapore is one of the
Four Asian Tigers. The economy depends heavily on exports
refining imported goods, especially in manufacturing.
Manufacturing constituted 26% of Singapore's GDP in 2005.
The manufacturing industry is well-diversified into electronics,
petroleum refining, chemicals, mechanical engineering
and biomedical sciences manufacturing. In 2006, Singapore
produced about 10% of the world's foundry |
|
wafer
output. Singapore has one of the busiest ports in the world.
Singapore is the world's fourth largest foreign exchange trading
centre after London, New York City and Tokyo.
Singapore
has been rated as the most business-friendly economy in the
world, with thousands of foreign expatriates working in multi-national
corporations. Singapore is also considered to be one of the
top centres of finance in the world and throughout the region.
In addition to this, the city-state also employs tens of thousands
of foreign blue-collared workers around the world.
Singapore's Central Business District (CBD)As a result of
global recession and a slump in the technology sector, the
country's GDP contracted 2.2% in 2001. The Economic Review
Committee (ERC) was set up in December 2001, and recommended
several policy changes with a view to revitalising the economy.
Singapore has since recovered from the recession, largely
due to improvements in the world economy; the Singaporean
economy itself grew by 8.3% in 2004, 6.4% in 2005 and 7.9%
in 2006. On 19 August 2007, Prime Minister Lee Hsien Loong
announced in his National Day Rally Speech that Singapore's
economy is expected to grow by at least 4-6% annually over
the next 5-10 years.
The per
capita GDP in 2006 was US$29,474. As of September 2007, the
unemployment rate is 1.7%, which is the lowest in a decade,
having improved to around pre-Asian crisis level.[49] Employment
continued to grow strongly as the economy maintained its rapid
expansion. In the first three quarters of 2007, 171,500 new
jobs were created, which is close to the 176,000 for the whole
of 2006. For the whole of 2007, Singapore's economy has grew
7.5% and drew in a record S$16 billion (US$10.6b)of fixed
asset investments in manufacturing and projects generating
S$3 billion (US$2b)of total business spending in services.
Orchard Road is decorated for Christmas, 2005.Singapore introduced
a Goods and Services Tax (GST) with an initial rate of 3%
on 1 April 1994 substantially increasing government revenue
by S$1.6 billion (US$1b,€800m) and stabilising government
finances. The taxable GST was increased to 4% in 2003, to
5% in 2004, and to 7% on 1 July 2007.
Due to
the economic recession, Singapore's economy expanded by only
1.1% in Year 2008, much lower than the expected 4.5% to 6.5%
growth, while the unemployment rate was at 2.8%. The economy
is expected to contract greatly by 8% in 2009 and unemployment
could rise to 5 percent this year as forecast by several private
sector economists.
Transportation
International
The Port of Singapore with Sentosa island in the background.
Singapore is a major Asian transportation hub, positioned
on many sea and air trade routes.
The Port
of Singapore, managed by port operators PSA International
and Jurong Port, was the world's second busiest port in 2005
in terms of shipping tonnage handled, at 1.15 billion gross
tons, and in terms of containerised traffic, at 23.2 million
twenty-foot equivalent units (TEUs). It was also the world's
second busiest in terms of cargo tonnage, coming behind Shanghai
with 423 million tons handled. In addition, the Port is the
world's busiest for transshipment traffic and the world's
biggest ship refuelling centre.
PSA KeppelSingapore is an aviation hub for the Southeast Asian
region and a stopover on the Kangaroo route between Australasia
and Europe. Singapore Changi Airport has a network of 81 airlines
connecting Singapore to 185 cities in 58 countries. It has
been rated as one of the best international airports by international
travel magazines, including being rated as the world's best
airport for the first time in 2006 by Skytrax. The airport
currently has three passenger terminals. There is also a budget
terminal, which serves budget carrier Tiger Airways and Cebu
Pacific. The national carrier is Singapore Airlines (SIA).
The government is moving towards privatising Changi airport.
Singapore
is linked to Johor, Malaysia via the Johor-Singapore Causeway
and the Tuas Second Link, as well as a railway operated by
Keretapi Tanah Melayu of Malaysia, with its southern terminus
at Tanjong Pagar railway station. Frequent ferry service to
several nearby Indonesian ports also exists.
A C751B
train at Eunos MRT Station on the Mass Rapid Transit (MRT)
system, one of three heavy rail passenger transport lines
in Singapore.
Domestic
The domestic transport infrastructure has a well-connected
island-wide road transport system which includes a network
of expressways. The public road system is served by the nation's
bus service and a number of licensed taxi-operating companies.
The public bus transport has been the subject of criticism
by Singaporeans, the majority of whom are dependent on it
for their daily commuting. Since 1987, the heavy rail passenger
Mass Rapid Transit (MRT) metro system has been in operation.
The MRT has been further augmented by the Light Rail Transit
(LRT) light rail system, and increases accessibility to housing
estates. Established in 2001, the EZ-Link system allows contactless
smartcards to serve as stored value tickets for use in the
public transport systems in Singapore.
More than
2.85 million people use the bus network daily, while more
than 1.5 million people use either the LRT or MRT as part
of their daily routine. Approximately 945,000 people use the
taxi services daily. Private vehicle use in the Central Area
is discouraged by tolls implemented during hours of heavy
road traffic, through an Electronic Road Pricing system. Private
vehicle ownership is discouraged by high vehicle taxes and
imposing quotas on vehicle purchase.
Resources
Water
resource
Without
natural freshwater rivers and lakes, rainfall is the primary
domestic source of water supply in Singapore. About half of
Singapore's water comes from rain collected in reservoirs
and catchment areas while the rest comes from Malaysia. The
two countries have long argued of the legality of agreements
to supply water that were signed in colonial times.
Singapore
has a network of reservoirs and water catchment areas. In
2001, there were 19 raw water reservoirs, 9 treatment works
and 14 storage or service reservoirs locally to serve domestic
needs. Marina Barrage is a dam being constructed around the
estuary of three Singapore rivers, creating a huge freshwater
reservoir by 2009, the Marina Bay reservoir. This will increase
the rainfall catchment to two-thirds of the country's surface
area.
Historically,
Singapore relied on imports from Malaysia to supply half of
its water consumption. However, two water agreements that
supply water to Singapore are due to expire by 2011 and 2061
respectively. The two countries are engaged in a dispute on
the price of water. Without a resolution in sight, the government
of Singapore decided to increase self-sufficiency in its water
supply. Presently, more catchment areas, facilities to recycle
water (producing NEWater) and desalination plants are being
built. This "four tap" strategy aims to reduce reliance
on foreign supply and to diversify its water sources.. In
2008, a water barrage name - The Marina Barrage was built
across the Marina Channel between Marina East and Marina South.
The barrage aims to provides additional water supply catchment
area, improve flood control and serve as an outdoor attraction
for tourist and singaporean.
|