Contents. The Singapore Economy. The Financial Crisis. From Third World to the First Singapore Economic Development Strategy

Transcription

1 From Third World to the First Singapore Economic Development Strategy Contents The Singapore Economy History Structure Principles Strategies The Financial Crisis 1

2 The Singapore Economy History : Export Oriented Industrialisation Opened economy to foreign investors (EDB) Better labour management & infrastructure (NTUC, JTC) 2

3 : Industrial Restructuring High-wage policy; Manpower development; Automation promoted : Capability Building & Diversification National technology plans ($6b); Cluster development (chemicals, electronics); Economic diversification services; Regionalisation industrial & business parks 3

4 1998 onwards: Towards a Knowledge-Based Economy Today Our per capita income is amongst the highest in Asia and the world 4

5 1960s 1970s 5

6 1980s Today 6

7 Beyond 2010 Wealth is Health? GDP per capita is correlated to a number of health indicators 7

8 Wealth is Health? GDP per capita is correlated to a number of health indicators Building a better life GDP per capita is correlated to indicators on our physical environment 8

9 Building a better life GDP per capita is correlated to indicators on our physical environment The Singapore Economy Structure 9

10 A Small & Open Economy Our share of global & regional GDP is small, and external demandhas a large share of our GDP. Share of Global GDP EU Share of S poregdp by Demand Singapore (0.3%) US East Asia Others External Demand (76.1%) Investment (7.4%) Household Expenditure (13.0%) Share of East Asia GDP China Hong Kong Japan South Korea Government Expenditure (3.4%) Chinese Taipei Singapore (1.5%) Rest of ASEAN A Small & Open Economy Our share of global & regional GDP is small, and external demandhas a large share of our GDP. 10

11 A Diversified Economy By sectoraloutput; manufacturing still plays a big role in the economy. The share of services has grown due to infocomms, financial services, and wholesale & retail trade Share of GDP by Sector, 2000 Share of GDP by Sector, 2008 Ownership of Dwellings, 4% Other Svcs, 10% Manufacturing, 26% Ownership of Dwellings, 3.5% Other Svcs, 9.5% Manufacturing, 25% Business Svcs, 12% Financial Svcs, 11% Info & Comms, 3.6% Hotels & Restaurants, 2.1% Transport & Storage, 9.5% Construction, 5.6% Utilities, 1.7% Other Goods Industries, 0.1% Wholesale & Retail, 13% Business Svcs, 12% Financial Svcs, 13% Info & Comms, 4.4% Hotels & Restaurants, 1.7% Transport & Storage, 9.1% Wholesale & Retail, 16% Construction, 4.2% Utilities, 1.7% Other Goods Industries, 0.1% A Diversified Economy Sectors cannot be considered in isolation Transport & Storage Ships and stores inputs from other sources in the global/regional production chain. Wholesale Trade Breaks down imported shipments to smaller units for manufacturers Financial Services Provides credit for trade financing, as well as working capital for firms operations. Manufacturing Convert raw materials/intermediate inputs into final/intermediate products. Business Services Legal, accountancy, real estate, etc. services. Wholesale Trade Retail Trade For final domestic demand. Transport & Storage To export to plants/final consumers in other countries. 11

12 A Diversified Economy In terms of export destinations EU-27: 14.1% U.S.: 11.4% China: 8.5% Japan: 5.3% HK: 9.1% ASEAN: 26% Share of Singapore s Domestic Exports, 2007 The Singapore Economy Principles & Strategies 12

13 Three Economic Principles Market-based Approach Outward Orientation Prudent Macroeconomic Policies S'pore bureaucracy most biz-friendly in Asia BT, 27/2/2007 Business executives see Singapore as Asia's least bureaucratic place in which to operate, with one of the best banking and financial systems in the region. it is still looked upon as the least risky country overall in Asia, according to a survey of 13 Asia-Pacific and US economies by Political & Economic Risk Consultancy (Perc). TRADE 3.5 X GDP Multilateral Regional Bilateral FTAs Low Interest Rate Balanced Budget Stable Exchange Rate A business-friendly environment Economic Strategies Enhancing our competitiveness #1 Doing Business Indicators 17% Competitive Corporate tax rate Reduce regulatory burden Pro-Enterprise Panel business.gov.sg Action Community for Enterpreneurs 13

14 Economic Strategies Enhancing our competitiveness Quality and Availability of Resources Quality LAND Manpower Infrastructure Energy Jurong Rock Cavern One North Jurong Island Local manpower development Foreign manpower Talent attraction Restructuring of energy markets Diversification Improve energy efficiency Economic Strategies Build New Capabilities Promote R&D LAND Education & Upgrading Innovation & Enterprise R&D spending of 3% by 2010 Augment local & foreign talent pool Research infrastructure >20% of govt operating expenditure on education & training Seed high tech & innovative enterprises. Grow Singapore-based enterprises. 14

15 Sector Tourism Strengthen existing clusters Projects Marina Bay Sands Resorts World at Sentosa Economic Strategies Develop Growth Clusters By 2015 Each IR expected to: Contribute S$2.7 bil(~0.8%) to GDP 30,000 new jobs Aerospace Chemicals Offshore & Marine Precision Engineering Transform Seletar Airport into a major Aerospace Park Develop Jurong Island Develop Tuas View Extension Enhance profile & address talent requirements for this key supporting industry Contribute S$3.3 bil(~1%) to GDP 10,000 new jobs Increase contribution to GDP from S$5.1 bilin 2003 to S$11.5 bilin 2015 Increase in contribution to GDP from S$1.3 bilin 2003 to S$2.5 bilin 2015 Increase in contribution to GDP from S$5.6 bilin 2003 to S$9.6 bilin 2015 Economic Strategies Develop Growth Clusters Grow new clusters CLEAN WATER S$1.7 billion VA 5,500 new jobs CLEAN ENERGY 2015 Targets S$1.7 billion VA 7,000 new jobs INTERACTIVE DIGITAL MEDIA S$10 billion VA 10,000 new jobs 15

16 Our FTA network Economic Strategies Expand Our Economic Space ASEAN Australia NZ US Japan Jordan India Panama P4: NZ+Chile+ Brunei Korea Questions 16