Singapore’s Economic Competitiveness
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Published: Thu, 18 Jan 2018
According to the global competitiveness report 2014-2015, Singapore has retained their place as the most competitive economies in the South East Asia. Singapore’s economic rank second in the world just behind the country Switzerland for the fourth consecutive. Singapore had owning an outstanding and stable performance across all the dimensions of the GCI. In addition, Singapore had tops the goods market efficiency pillar and ranks second in the labor market efficiency. Over decade years, Singapore unemployment rate has obviously decreasing, this refer Singapore’s labor force has strong active population toward to work in order stimulate the development to the country. Furthermore, Gross Domestic Product (GDP) in Singapore tremendously expanded 3.20 percent in the first quarter 2015 over the previous quarter.
2.0 The Cause of the High Economic Competitiveness in Singapore
As the globalization permeates our modern world, change can be said to be only constant to Singapore. As Singapore celebrates its Jubilee year, contemplating where it stands in ASEAN is important to carve out a path to keep constantly develop to successful country. The future of Singapore should not only improve within it country to remain ahead and relevant, Singapore should also to consider how the world affects us. Hence, Singapore need to building stronger ties in between neighbors countries.
The association of South East Asian nation known as ASEAN is a 12 member international body, that’s consists the country of: China, Thailand, Laos, Vietnam, Philippines, Brunei, Cambodia, Indonesia, Myanmar, Malaysia, India and Singapore. The objective of ASEAN is aim to promote collaboration and co-operation among its member states as well as to advance the interest of the region as whole, including economic and trade growth (). Singapore had a crucial role in building economic ties within the region of ASEAN, it lead Singapore economic market trading with ASEAN countries. As Asia’s most mature financial center, Singapore has a key role to play in ASEAN’s economic transformation. It attracted more public and private funding through export agencies or bank to invest Singapore to trade finance to allow more Asian companies to reach global market.
As today prosperous of China, Singapore has to working with China to explore more new opportunities to maintain it economic position. Singapore integration with China will be inevitable in near future, it may allow Singapore be able to maintain independence through economic ties with the US market. According to China moving up the value chain, Singapore will need to build stronger diplomatic with China in order to further exploring Sino-Singapore co-investment in other market. The developing of Sino-Singapore co-investment will benefits to Singapore and even to ASEAN could be profitable as it rides on the trend of growing outbound Asian foreign direct investment to other high-growth market.
Global Economic Outlook
Global growth is forecast at 3.5 percent in 2015 and 3.8 percent in 2016, global economic growth remains moderate with uneven prospects across the main countries and regional. In year 2015, World Economic Outlook (WEO) report that the outlook of global advanced economic compare relative to last years has improving, while growth in emerging market and developing economies is projected to be lower, primarily reflecting weaker prospects for some large emerging market economies and oil-exporting countries.
In the United States, underlying growth has remained solid all time. However, while lower energy prices have boosted growth momentum in the United States, they pose downside risk to the Canadian economy owing to the relatively large size of its energy sector. The economy of United Stated has been resilient to the weaker external conditions and the strengthening dollar. Besides that, United States has shown solid improvement into labor market and business as well as the consumer behavior. It may develop United States on labor market to recovery fast pace, boosting household incomes and confident.
In the Europe area, activity was weaker than expected in the middle part of 2014 as private investment remained weak. Although growth was stronger than expected in fourth quarter, but uncertain still across countries. The substantial QE program carries out by the European Central Bank can have positive effect on sentiment, but whether it will product critical effect to boost the growth outlook is debated. In the financial market of Europe, pricing in the ECB policy actions positively remained supportive. ECB’s action will able to improve financial conditions in order to boost economic into the stronger momentum at end of 2015.
Improve Innovation and Reformation
In the microeconomic environment of Singapore, Singapore improve it country innovation and reformation to increase competitiveness. These innovation and reformation allow Singapore boosts it economic to moving upward. An innovation and reformation can be created in many ways, which can be in sector of technological or sector of science innovation. No matter what type innovation or reformation is, it should helpful Singapore development into a modern city. New innovation and reformation will helps Singapore industries to save much time toward work and labor force. Innovations stands a vital role to transforming Singapore to developing country to a modern industries economy in one generation and keep innovating so Singapore will able to stay competitive in the global economy.
Singapore had strong education system to enhance it country human capability. Singapore student are aims high and they achieve a very good result. Education in Singapore is managed by Minister of Education (MOE), which control the development and administration of state school as well as has advisory and supervisory role in respect of private schools. MOE provided a good environment with capable leader and teachers and also perfect facilities to the youth which are helpful to develop student skill and knowledge in order to take Singapore forward to maintain it economic competitiveness in future. Moreover, Singapore education systems are best and has been recognize in the world, this bringing tremendously opportunity to Singapore residents which allow them to survive in global challenge. Singapore has achieved almost universal education at each level of schools which will able to enhance student human capability to prepare them for knowledge based-economic and help to build national identity.
3.0 The Challenge to Singapore’s economic competiveness
Lacking of natural resource
Singapore has limited land area and limited of natural resource, it will cause Singapore facing challenge to further developing without any of this natural resource. Singapore is a small island nation with over 5.3 million people, but it is face difficult problem with their insufficient of resource to supply to these 5.3 million residents. The major natural resources issue that Singapore facing are, limited natural freshwater resources and limited land availability presenting waste disposal problem and so on. It could lead the problems to Singapore that people have no access to clean water in time of future and quarter of people will lack adequate housing.
Meanwhile, lack of resource will create wide-range problems such as unemployment, housing and people which will affect their life system. Domestically, Singapore does not have enough arable land to produce its own food, it heavily relies on imports which will result the price are extremely expensive to it residents. Lacking of natural resource will also slower down Singapore economic growth as well as affect to the overall GDP on economic development. With limited natural resource, Singapore will unable to produce more domestic goods to export to other countries which will become barriers to it economy when competitive to other developing country.
Human Resource Development Hamper
A confidence labor market is the great asset of country. Singapore labor market had insufficient skill and unskilled worker in today workforce. Due environment changing rapidly with the jobs, the criteria of jobs will be different and skill will need to change, it should not remain on the past. When worker lack of skill and unskilled to enter the workforce, it may take a certain time to train them in order to join workforce, more or less it will affect the productivity of Singapore hamper. Meanwhile, it will also affect Singapore economy downturn. When workers are unskilled, it may lead to low morale among worker which results in worker turnover. In addition, Singapore unemployment rate will be increase when worker didn’t adopt a new idea and new skill.
Nevertheless, Singapore productivity rate will decrease due to unskilled worker not well knows to perform their jobs confidently. Unskilled worker spend considerable time to perform their jobs based on their own understanding which affect detriment of the work process. This could also lead errors and injury on workplace. Furthermore, supervisor and other worker need to spend time to monitoring unskilled worker, which detracts from their work and increases the amount of time necessary to complete production. Singapore facing uncertain economy problem which people unwilling continue upgrading and economics growth will be in period of recession.
4.0 The economic strategies and government policies for Singapore future improvement
Energy efficiency and renewable resources
As Singapore is city-state with lack land area to development, it is not particular rich in natural resources. The challenge that Singapore is facing on management water resource has been a country across the globe. Thus, Singapore has to carry out with an efficient water management policy to ensure sustainability of water over the period of time. Singapore should further devise water management strategies to manage limited water resource. Singapore should through research and technology to found an integrated with further carry effective and cost-efficient ways to solve water supply issue. Singapore’s national water agency PUB has implemented a policy to provide diversified supply of water. These plenty water supply consist the method of: local catchment water, imported water, highly-purified reclaimed water also known as NEWater and desalinated water.
Moreover, the sustain increasing demand in energy, government of Singapore should developing the technology for various source of renewable resource in Singapore and to leverage on renewable resources to implement in large scale and commercially viable manner. Renewable resources have become a focal point of the environment movement in both politically and economically and energy obtained from renewable resources put less strain on the limited supply of non-renewable resources. Singapore government should use of bios mass as renewable resource. Bios mass is any derived organic matter, which is available on a renewable basis. On the other hand, bios mass able stored solar energy that can be converted into electricity or fuel.
Singapore has great potential to harness solar energy due to this country located in the equatorial belt. Singapore able builds a solar power manufacturing plant to product solar energy. The solar energy plant able to produce wafer, cells and modules in the ways for used to generate solar power. Use Solar energy is lead to reduce the demand of electric current and solar power is much reliability than electricity.
Urban Planning to Singapore
An urban planning is planned for Singapore for a long-term sustainability to further developing Singapore to a better country. The main objective urban planning of Singapore is to priority ensuring catering for the economic growth and a good quality of life as well as maintains the clean garden city and making the best of using resources. An urban plan approach to sustainable development is far-sighted, holistic and comprehensive planning to Singapore, which able to help Singapore take into account of the global changing as well as future development through an integrate planning process.
An urban planning is significantly in development future of Singapore, it should also offer a good quality of life for all residents. Thus, the key aspect of urban planning is in ensuring that housing is available and affordable. With over 50 million people in Singapore, land is important to set aside for variety of housing type to meet various types of needs and aspiration. So, the range to purchasing of house should provide from affordable and quality high rise public housing where allow 80 per cent of the population lives.
As Singapore is the city to address complex urbanization and uncertain environmental challenges of the future, there is a necessary to seeking out viable new ideas, innovation, technologies and other solution to against with the global economic changing. That’s the reason why Singapore developing living laboratory. Numerous of companies and research institute are in partner with urban planning authority of Singapore developed new technologies and have been testing out the new urban solution that can be commercialized and replicated elsewhere. In order to Singapore create cooler and more comfortable environment that every people could enjoy, urban redevelopment authority also known as URA is leading an ongoing climatic mapping island-wide study that examines the impact of building, greenery and urban space on micro-climatic conditions like air flow and temperature. The aim of urban design study is to help Singapore design strategies that can leverage on climatic conditions to create better living environment.
While the economy will move upward and downturn in the long run, it is hard predictable what will happen in the future development of Singapore. Singapore may face uneven challenge in the future, in keeping the economy strong, raising total fertility and further to growth competitiveness while global economy changing rapidly. However, with the government policy play important role to maintain upgrade and keep priming the economic development; this could lead Singapore to stand great confidence in against global economic competitiveness. In the global economic, Singapore remain confident that the global economy able to gain momentum due to US economy set accelerate to itself fastest pace and oil price remain low. With good reputation on trading experience in import, export market and shipping market, Singapore able to integrate with other countries develop more competitiveness market. More or less, it could also boost Singapore economy to a better result in consumer confidence. Singapore will able to keep growing as modest city with it strong economic system in competitions of globalization
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