Singapore Pestle Analysis

2596 Words Mar 6th, 2008 11 Pages
PESTLE Analysis

The political power is extremely centralized in the government and it is a bureaucratic country. Although the elections are being held often, the offices are mostly assigned instead of elected. The government put efforts in communicating the decisions and policies to the public instead of gathering their opinion. The reason of that is after the "Depoliticize" the power structure in 1965, the government is convinced by a concept that a city state without natural resources, if keeping the political centralized and narrow, the economic and political stability are maintained. The People's Action Party dominated the Singaporean politics since the independence from leaving the Federal of Malaysia in 1965. Singapore is
…show more content…
However, Singapore's inflation in 2007 was 3.6% and a forecast of 5% in 2008 which is the highest in 16 years and it has a huge impact on costs of food, energy and transportation and the CPI (Consumer Price Index) has been increased accordingly. One of the reasons was the increase of sales taxes from 2% to 7% in July 2007.
The forecast of Singapore growth in GDP 2008 was cut down to 4%-6% because of the risks in recession due to the slowdown in United States, mainly because of the real estate crisis and the stock market. Also the evidences show the slow down of outputs from the foreign drug factories and electronic exporters but the economists believed that even if the recession is happening, Singapore will walk out very quickly, because they estimate the domestic demand can pull it through.
According to Appendix 1, exports in 2007 were $450,587.4 million in current price and it increased 4.4% from 2006 which indicated that the growth is declined sharply from previous years. The growth in 2004 was 20.5%, year 2005 was 14% and year 2006 was 12.8% from previous years. The numbers are insisting of domestic exports, non-oil exports, oil exports and re-exports. Reasons of that may due to the slow down of growth in United States and Europe which affects the technology and manufacturing industries in Asia. As the important transportation port, slowing

More about Singapore Pestle Analysis

Open Document