The Republic of Singapore is located in the southeast of Asia, 137 kilometres north of the equator; it has an area of 710 km² and a population of 5, 183, 700 people. It is made up of 63 islands and it has been urbanised and more land has been created for development.

After Singapore declared its independence from the Japanese, it then separated from Malaysia after two years and this separation caused a huge increase in the wealth of Singapore. Singapore is now the fourth financial centre in the world, and its port is one out of the five greatest ports in the world.

In this project we will be talking about the economy of Singapore and how it became one of the richest countries in the world and probably will still be until 2050. Singapore is a good business place as it is easy to start up a business due to the free economy and non-involvement of the government.

The sector of manufacture in Singapore provides a rate of 20% to 30% to the country’s GDP yearly. For having a stable political and very supportive business environment it attracted a lot of banks and firms.

In 2009 Singapore has been chosen to be the tenth most expensive country in the world for residents to live in.

ECONOMY OF SINGAPORE

Although Singapore is small in size but it’s big in business, it is known for its high standards of living.

Singapore does not have a centrally planned economy; it is a free economy; the second freest in 2012, where the government does not control any aspects from business, trade, finance, investment…Etc. Singapore has an open business environment that is free from corruption and that gives the country a high score, with stable prices and low tax rate comparing to other developed countries. As the economy is a free economy most companies in Singapore are signed as private limited companies (Pte Ltd).

The main sources of income for the Singaporean economy are the exports (electronics, chemicals and services) and imported goods (that is a part of 26% of Singapore’s GDP). The opening of the state’s first casino caused an increase in the economy too which caused the country to purchase goods and resources that it never had. Singapore has no significant natural resources and as it operates the third largest oil refinery in the world it needs to buy raw materials from other countries and it gets its own from Saudi Arabia and due to its high developed market it ships the final products made to its neighbouring countries (US, Malaysia, china, Japan, Indonesia, south Korea).

Singapore’s arose spectacularly from a third world country to a first world with no natural resources but with the help of its own people. It is really a great place to start and run a business; it is easy to start up along with very well ordered laws. Singapore’s government is very efficient, stable and organized with low tax rates and low government outcomes and its main aim and focus to take the country to the top and make it one of the most and best industrialized nations.