Economic Environment of Singapore

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International Marketing 560 Economic Environment of Singapore Laura L. Erwin-Hall October 12, 2007 "Home to some 4.48 million people (based on the last census in 2005 reported in 2006), Singapore is the fourth most densely populated country in the world and has one of the highest per capita gross domestic products in the world."1 The employment rate is 2.40 million (June 2006), with unemployment at an all-time low at only 2.5 percent. The labor force consists of mainly manufacturing, transportation and communication, construction, and financial, business, and other services. Singapore is orderly, prosperous, and modern. According to Richard H.K. Vietor, a Harvard Business School professor, Singapore, along with…show more content…
(1) The government 's role is to provide private enterprise a stable environment in which to thrive. The main focus of the Singapore 's government spending is on essential public goods and services to Singaporeans. Key areas of expenditures are on education, public housing, health care, and national security. (2) Tax and expenditure policies should focus on incentives for saving, investments, and enterprise. Singapore 's main source of governmental savings comes from taxes which are then used to increase economic competitiveness and attract foreign investments. Singapore is ranked number one for economic freedom. This combination of fair tax policies and the careful expenditure program, along with high economic growth has allowed Singapore to gather consistent budget surpluses. Their fiscal policy has also contributed to Singapore 's high savings rate and allows it to achieve one of the highest investment rates in the world. In addition, Singapore does not have any foreign debt. The government promotes high levels of savings and investment through a mandatory
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