Many people view Singapore as an example of economic success, with the nation’s growth rates and low unemployment rate, making it look like an ideal place to live and do business. In reality, Singapore’s incredible economic success has been the result of three key factors that have allowed it to thrive in recent years and position itself as one of the best countries in the world for business: low taxes, a highly skilled workforce, and strong government leadership. Let’s take a closer look at each of these pillars in order to understand how they help drive Singapore’s economy forward in today’s global marketplace.
Pillar #1: A Small, Dynamic Economy
Singapore is a small island nation with a population of just over 5 million people. Despite its size, the country has a highly developed and diversified economy. The three pillars of Singapore’s economic success are a small, dynamic economy; a strong focus on education and innovation; and a pro-business environment. The first pillar is characterized by an export-driven economy that thrives on global trade. Singapore was once one of the world’s largest trading ports and continues to be a major transshipment hub for oil from Indonesia as well as other commodities from around Asia. The other refers to the encompass both general business conditions that encourage investment and ownership (for example public policies designed to foster creativity and innovation in society by investing heavily in education at all levels – preschool through tertiary institutions – in addition to making government procurement open to ideas from startups and the private sector. They encompass both general business conditions that encourage investment ownership. Both general business conditions encourage investment and ownership (for example, low taxes) but also governmental efforts to reduce red tape for entrepreneurs so they can quickly start or expand their businesses.
Pillar #2: Trade with Neighbors
If you want to be a successful trader, it’s important to have good relationships with your neighbors. That’s why Singapore has worked hard to maintain strong trade ties with its neighbors in Southeast Asia. Today, the country exports more than four times as much to these countries as it does to any other region in the world. The small nation is also the world’s largest exporter of computer components and software outside the United States-thanks largely to investments from neighboring companies like Intel and Microsoft. And there are indications that this export engine will continue powering growth for years: although exports fell during the recent global recession, they rebounded at an even faster pace than imports, suggesting a bright future for exports from Singapore.
Pillar #3: Workforce Competitiveness
A strong workforce is critical in any economy, and Singapore has been intentional about building a world-class workforce. The government has invested heavily in education and training, which has paid off in the form of a highly skilled and educated workforce. In addition, the government has put policies in place to attract top talent from around the world. As a result, Singapore has one of the most competitive workforces in the world.