What makes the Singapore economy tick?

A major financial hub in the Asia Pacific region, Singapore has long earned a reputation as one
of the world’s most advanced economies.

In 2017, Singapore was ranked as the world’s second most open economy by the Heritage
Foundation’s Index of Economic Freedom, as well as the world’s second most pro-business
regime by the World Bank’s Doing Business report.

Despite its small domestic market and a lack of natural resources, Singapore successfully
weathered through the financial crises of 1997 and 2008. Today, the Singapore economy is one
of the most stable in the world, with no foreign debt, high government revenue and a
consistently positive surplus.

The Singapore economy is mainly driven by exports in electronics manufacturing and

Which Singapore industries drive the economy?

Singapore’s largest industry by far is the manufacturing sector, which contributes 20%-25% of
the country’s annual GDP.

Key industry clusters in Singapore’s manufacturing include electronics, chemicals, biomedical

Close behind Singapore’s manufacturing industry is its financial services industry, which has
enjoyed stable growth due to Singapore’s pro-business environment and political stability. Home
to over 200 banks and a regional hub of choice for many global financial services firms,
Singapore’s financial services marketplace facilitates the transfer of knowledge, processes,
technology and skills between global, regional and domestic markets.

Other emerging industries that are making significant contributions to Singapore’s economy
include medical technology, aerospace engineering, clean energy, healthcare, and content
development.

What natural resources does Singapore have?

Located at the southernmost tip of the Malaysian peninsula and with a land area smaller than
that of New York’s, Singapore has no significant natural resources.
However, this did not stop Singapore from developing itself into a regional hub for oil and gas,
as well as a world leader in sustainable water solutions and projects such as NEWater and the
Deep Tunnel Sewerage System.

It has been said that Singapore’s true natural resource is its people – and in a growing
economy, this could not be more apt. As the economy grows, both local and non-local
companies have access to a pool of an educated workforce and, eventually, a burgeoning
consumer market.

How developed is Singapore’s infrastructure ?

As a commercial and military seaport during the British colonial era, Singapore’s infrastructure
has always been well-developed. After Singapore gained independence in 1965, the
post-colonial government went on to improve and expand the country’s transport,
communications, industrial, and housing systems.

By land, Singapore is served by 9,310 kilometres of paved roads, 199.6 kilometres of rail (mass
rapid transit and light rail combined), as well as island-wide bus, taxi, and ride-share operations.
The transport system is efficient, safe, and punctual.

By air, Changi International Airport is connected to 380 cities in 90 countries. It handles more
than 7,000 weekly flights transporting passengers and cargo worldwide. By sea, the Singapore
port gives shippers a choice of over 200 shipping lines and access to some 600 ports in 123
countries. At any one time, there can be as many as 1,000 ships docked at the Singapore port,
which makes it the busiest container port in the world.

The telecommunications system is no less remarkable - Singapore has one of the world’s
highest mobile penetration rates at 1.5 mobile phones per person, and more than 90% of
Singaporean households have Internet access. In hotspots such as coffee chains, fast-food
restaurants, or Changi Airport, you can use an island-wide Wi-Fi service called Wireless@SG
for free.

Industrial and commercial facilities for businesses are also readily available in Singapore. The
Jurong Town Corporation (JTC) has over 47.7 million square meters of strategically-located built
industrial space that can be used to build factories, warehouses and business parks. For
commercial businesses, choice of world-class high-rise and low-rise offices in the Central
Business District and other parts of town are available.

What is Singapore’s current Gross Domestic Product (GDP)?

For the third quarter of 2017, Singapore’s GDP (at current market prices) stands at S$107
billion. The Singapore economy grew by 5.2% during this period – which is the fastest pace it
has grown in more than three years, according to a Bloomberg report.
The recovery of global trade and an improving labour market has helped Singapore not only
sustain growth in the manufacturing industry, but also broaden out to other industries such as
services and retail.

The Monetary Authority of Singapore estimates that the Singapore economy is likely to expand
at a steady, but slightly slower, pace in 2018 compared to 2017.

Does the Singapore government have any public debt?

The Singapore government has maintained zero foreign debt since 1995. As for domestic debt,
the total outstanding government borrowing was S$496 billion as of the third quarter of 2017,
which comprises of registered stocks and bonds, treasury bills and advance deposits.

However, this high figure is not an accurate representation of Singapore’s fiscal strength - the
Singapore government borrows to invest, and the return on investment (ROI) generated on
these investments makes up for the difference.

By implementing these strategic debts alongside with strong asset protection, robust economic
growth, and prudent macroeconomic policies, the Singapore government has a strong balance
sheet with its assets outweighing its liabilities.

What are the main sources of revenue for the Singapore government?

The Singapore government’s total revenue is estimated at S$69 billion as of the third quarter of
2017.

As with most governments, Singapore earns the bulk of its revenue from taxes – income,
property, excise and customs duties, as well as GST. Other revenue sources for the government
include are licence and permit fees, government property rental, fines and forfeitures, as well as
capital receipts from the sale of capital goods.

What is Singapore’s current currency strength?

As of November 2017, the Singapore dollar traded at S$1.3467 against the U.S dollar, which is
slightly lower than the 2016 average rate of S$1.3815.

What is Singapore’s current trade strength?

Singapore traded S$967.1 billion worth of goods in 2017, an increase of 11.1% from the
previous year. Singapore is considered to be the world’s 14th largest exporter and 17th largest
importer.

Singapore's top three export and import commodities sections are machinery and transport
equipment, chemicals and chemical products and miscellaneous manufactured articles.
Singapore exported $$515 billion worth of goods in 2017, with its primary export partners being
the United States, Australia, Japan, China and United Kingdom

It also imported S$452.1 billion worth of goods in 2017, with its primary import partners being
the United States, Netherlands, China, Hong Kong and Japan.