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|organs = [[World Trade Organization|WTO]], [[Asia-Pacific Economic Cooperation|APEC]], [[Indian Ocean Rim Association for Regional Cooperation|IOR-ARC]], [[Association of Southeast Asian Nations|ASEAN]]
|organs = [[World Trade Organization|WTO]], [[Asia-Pacific Economic Cooperation|APEC]], [[Indian Ocean Rim Association for Regional Cooperation|IOR-ARC]], [[Association of Southeast Asian Nations|ASEAN]]
|gdp = [[United States dollar|US$]]307.9 billion (nominal; 2015 est.)<ref name="International Monetary Fund">{{cite web|title=World Economic and Financial Surveys World Economic Outlook Database|url=http://www.imf.org/external/pubs/ft/weo/2015/01/weodata/WEOApr2015all.xls|work=International Monetary Fund|publisher=International Monetary Fund|accessdate=15 September 2015|date=15 September 2015}}</ref>{{Clear}}[[Geary–Khamis dollar|Int$]]470.551 billion (PPP; 2015 est.)<ref name="International Monetary Fund"/>
|gdp = [[United States dollar|US$]]307.9 billion (nominal; 2015 est.)<ref name="International Monetary Fund">{{cite web|title=World Economic and Financial Surveys World Economic Outlook Database|url=http://www.imf.org/external/pubs/ft/weo/2015/01/weodata/WEOApr2015all.xls|work=International Monetary Fund|publisher=International Monetary Fund|accessdate=15 September 2015|date=15 September 2015}}</ref>{{Clear}}[[Geary–Khamis dollar|Int$]]470.551 billion (PPP; 2015 est.)<ref name="International Monetary Fund"/>
|growth = {{increase}} 1.1% (Q3 2016)<ref>http://www.channelnewsasia.com/news/business/singapore-economy-grows-1-1-in-q3-mti-narrows-full-year-forecast/3313976.html</ref>
|growth = {{increase}} 2.5% (Q1 2017)<ref>http://www.straitstimes.com/business/economy/singapores-gdp-growth-eases-to-25-in-q1-flash-data</ref>
|gdp rank = {{nowrap|[[List of countries by GDP (nominal)|36th]] (nominal, 2014) / [[List of countries by GDP (PPP)|40th]] (PPP, 2014)}}
|gdp rank = {{nowrap|[[List of countries by GDP (nominal)|36th]] (nominal, 2014) / [[List of countries by GDP (PPP)|40th]] (PPP, 2014)}}
|per capita = [[United States dollar|US$]]53,604 (nominal, 2015 est.)<ref name="International Monetary Fund"/>{{Clear}}[[Geary–Khamis dollar|Int$]]85,127 (PPP, 2015 est.)<ref name="International Monetary Fund"/>
|per capita = [[United States dollar|US$]]53,604 (nominal, 2015 est.)<ref name="International Monetary Fund"/>{{Clear}}[[Geary–Khamis dollar|Int$]]85,127 (PPP, 2015 est.)<ref name="International Monetary Fund"/>

Revision as of 03:25, 13 June 2017

Economy of Singapore
Skyline of Singapore's CBD
CurrencySingapore dollar (SGD/S$)
1 April – 31 March
Trade organisations
WTO, APEC, IOR-ARC, ASEAN
Statistics
GDPUS$307.9 billion (nominal; 2015 est.)[1]
Int$470.551 billion (PPP; 2015 est.)[1]
GDP rank36th (nominal, 2014) / 40th (PPP, 2014)
GDP growth
Increase 2.5% (Q1 2017)[2]
GDP per capita
US$53,604 (nominal, 2015 est.)[1]
Int$85,127 (PPP, 2015 est.)[1]
GDP by sector
(2014)
Services: 75%
Industry: 25%
Agriculture: 0%
1% (2014 est.)
Population below poverty line
N/A
46.4 (2014)
Labour force
3.6275 million (June 2015) [3]
Labour force by occupation
(2014)
Services: 83.9%
Industry: 14.8%
Agriculture: 1.3%
Unemployment2% (2015 est.)
Main industries
List
External
ExportsS$518.922 billion (2014) [4]
Export goods
List
Main export partners
(2013)
 Malaysia 12.2%
 China 11.8%
 Hong Kong 11.2%
 Indonesia 9.9%
 United States 5.8%
 Japan 4.3%
 South Korea 4.1%
 Canada 3.7%
ImportsS$463.779 billion (2014) [5]
Import goods
List
Main import partners
(2013)
 China 11.7%
 Malaysia 10.9%
 United States 10.4%
 South Korea 6.4%
 Japan 5.5%
 Indonesia 5.2%
 United Arab Emirates 4.4%
FDI stock
US$900.2 billion (2014 est. – Home)
US$517.8 billion (2014 est.- Abroad)
US$61.172 billion (2015 est.) [6]
S$1.813 trillion (Q1 2015) [7]
S$738.811 billion (Q1 2015) [8]
Public finances
103.2% of GDP (2014 est.)
RevenuesS$69.45 billion (2017 est.) [9]
ExpensesS$75.07 billion (2017 est.) [10]
Economic aidNone
US$251.6 billion (31 September 2015) [13]
All values, unless otherwise stated, are in US dollars.


Singapore has a highly developed trade-oriented market economy.[14][15] Singapore's economy has been ranked as the most open in the world,[16] 7th least corrupt,[17] most pro-business,[18] with low tax rates (14.2% of Gross Domestic Product, GDP)[19] and has the third highest per-capita GDP in the world in terms of Purchasing Power Parity (PPP). APEC is headquartered in Singapore.

Government-linked companies play a substantial role in Singapore's economy, which are owned through the sovereign wealth fund Temasek Holdings, which holds majority stakes in several of the nation's largest companies, such as Singapore Airlines, SingTel, ST Engineering and MediaCorp.

The economy of Singapore is a major Foreign Direct Investment (FDI) outflow financier in the world. Singapore has also benefited from the inward flow of FDI from global investors and institutions due to its highly attractive investment climate and a stable political environment.[20]

Exports, particularly in electronics, chemicals and services including Singapore's position as the regional hub for wealth management[21][22][23] provide the main source of revenue for the economy, which allows it to purchase natural resources and raw goods which it lacks. Moreover, water is scarce in Singapore[24] therefore water is defined as a precious resource in Singapore along with the scarcity of land to be treated with land fill of Pulau Semakau. Singapore has limited arable land,[25] meaning that Singapore has to rely on the agrotechnology park[26] for agricultural production and consumption. Human resources is another vital issue for the health of the Singaporean economy.[27] The economy of Singapore ranks 2nd overall in the Scientific American Biotechnology ranking in 2014,[28] with the featuring of Biopolis.

Singapore could thus be said to rely on an extended concept of intermediary trade to Entrepôt trade, by purchasing raw goods and refining them for re-export, such as in the wafer fabrication industry and oil refining. Singapore also has a strategic port which makes it more competitive than many of its neighbours in carrying out such entrepot activities. Singapore's trade to GDP ratio is among the highest in the world, averaging around 400% during 2008–11.[29][30]

The Port of Singapore is the second-busiest in the world by cargo tonnage. In addition, Singapore's port infrastructure and skilled workforce, which is due to the success of the country's education policy in producing skilled workers, is also fundamental in this aspect as they provide easier access to markets for both importing and exporting, and also provide the skill(s) needed to refine imports into exports.

Singapore's government promotes high levels of savings and investment through policies such as the Central Provident Fund, which is used to fund its citizen's healthcare and retirement needs. Singapore's savings rates have remained among the highest in the world since the 1970s.[31] Most companies in Singapore are registered as private limited-liability companies (commonly known as "private limited companies"). A private limited company in Singapore is a separate legal entity, and shareholders are not liable for the company's debts beyond the amount of share capital they have contributed.

To preserve its international standing and further its economic prosperity in the 21st century, Singapore has taken measures to promote innovation, encourage entrepreneurship and re-train its workforce. [32] Also, to attract foreign talent, Singaporean government issues Employment Pass (EP) under three categories viz. P1 Employment Pass for those individuals with monthly income of $8,000 and up, P2 Employment Pass for individuals with monthly income of $4,500–7,999 and Q1 Employment Pass individuals with a monthly income of at least $3,000. The Ministry of Manpower (Singapore) (MoM) oversees the matter related to immigration of workers.[33] These measures aim to boost Singapore's productivity, so that Singapore remains competitive and ready for the challenges of an information-driven global economy.

Economy Statistics

Economy Statistics (Recent Years) : Year 2011 To Year 2014
Sources:[34][35][36][37][38][39][40][41]
Year
GDP
Nominal
(Billion)
 GDP
Nominal
Per Capita
GDP Real
(Billion)
GNI
Nominal
(Billion)
GNI
Nominal
Per Capita
Foreign
Reserves
(Billion)
Avg.
Exchange Rate
(1US$ to S$)
2011
US$275.369
S$346.353
US$53,122
S$66,816
S$342.371
US$250.515
S$338.452
S$65,292
US$237.737
S$1.2573
2012
US$289.941
S$362.332
US$54,578
S$68,205
S$354.061
US$273.022
S$351.765
S$66,216
US$259.307
S$1.2498
2013
US$302.245
S$378.200
US$55,979
S$70,047
S$324.592
US$294.692
S$366.618
S$67,902
US$273.065
S$1.2513
2014
US$308.051
S$390.089
US$56,319
S$71,318
S$380.585
US$301.638
S$378.329
S$69,168
US$256.860
S$1.2671
Economy Statistics Since Year 1970 To Year 2010
Sources:[42][43][44][45][46][47][48][49]
Year
GDP
Nominal
(Billion)
 GDP
Nominal
Per Capita
GNI
Nominal
(Billion)
GNI
Nominal
Per Capita
Foreign
Reserves
(Billion)
Avg.
Exchange Rate
(1US$ to S$)
1970
US$1.919
S$5.876
US$925
S$2,832
US$1.937
S$5.932
US$934
S$2,860
US$1.750
N/A
1975
US$5.789
S$13.728
US$2,559
S$6,067
US$5.841
S$13.851
US$2,582
S$6,122
US$3.007
N/A
1980
US$12.078
S$25.863
US$5,004
S$10,714
US$11.899
S$24.536
US$4,747
S$10,165
US$6.571
N/A
1985
US$18.555
S$40.823
US$6,782
S$14,921
US$19.220
S$41.161
US$6,838
S$15,045
US$12.860
S$2.1213
1990
US$38.899
S$70.507
US$12,766
S$23,139
US$36.675
S$69.798
US$12,638
S$22,907
US$27.789
S$1.8125
1995
US$87.891
S$124.575
US$24,937
S$35,346
US$83.220
S$125.475
US$25,117
S$35,601
US$68.819
S$1.4174
2000
US$95.835
S$165.217
US$23,794
S$41,018
US$95.330
S$164.205
US$23,648
S$40,767
US$80.169
S$1.7239
2005
US$127.417
S$212.074
US$29,866
S$49,715
US$121.000
S$198.050
US$27,891
S$46,428
US$116.172
S$1.6646
2010
US$236.420
S$322.361
US$46,569
S$63,498
US$227.377
S$235,076
US$46,305
S$63,137
US$225.754
S$1.3635

Economy History

Upon independence from Malaysia in 1965, Singapore faced a small domestic market, and high levels of unemployment and poverty.[31] 70 percent of Singapore's households lived in badly overcrowded conditions, and a third of its people squatted in slums on the city fringes. Unemployment averaged 14 percent, GDP per capita was US$516, and half of the population was illiterate.[50][51]

In response, the Singapore government established the Economic Development Board to spearhead an investment drive, and make Singapore an attractive destination for foreign investment.[51] FDI inflows increased greatly over the following decades, and by 2001 foreign companies accounted for 75% of manufactured output and 85% of manufactured exports.[31] Meanwhile, Singapore's savings and investment rates rose among the highest levels in the world, while household consumption and wage shares of GDP fell among the lowest.[31][52][53][54]

As a result of this investment drive, Singapore's capital stock increased 33 times by 1992, and achieved a tenfold increase in the capital-labor ratio.[55] Living standards steadily rose, with more families moving from a lower-income status to middle-income security with increased household incomes. During a National Day Rally speech in 1987, Lee Kuan-Yew claimed that (based on the home ownership criterion) 80% of Singaporeans could now be considered to be members of the middle-class. However, much unlike the economic policies of Greece and the rest of Europe, Singapore followed a policy of individualising the social safety net. This led to a higher than average savings rate and a very sustainable economy in the long run. Without a burdensome welfare state or its likeliness, Singapore has developed a very self-reliant and skilled workforce well versed for a global economy.[56]

Singapore's economic strategy produced real growth averaging 8.0% from 1960 to 1999. The economy picked up in 1999 after the regional financial crisis, with a growth rate of 5.4%, followed by 9.9% for 2000. However, the economic slowdown in the United States, Japan and the European Union, as well as the worldwide electronics slump, had reduced the estimated economic growth in 2001 to a negative 2.0%.

The economy expanded by 2.2% the following year, and by 1.1% in 2003 when Singapore was affected by the SARS outbreak. Subsequently, a major turnaround occurred in 2004 allowed it to make a significant recovery of 8.3% growth in Singapore, although the actual growth fell short of the target growth for the year more than half with only 2.5%. In 2005, economic growth was 6.4%; and in 2006, 7.9%.

As of 8 June 2013, Singapore's unemployment rate is around 1.9% and the country's economy has a lowered growth rate, with a rate of 1.8% on a quarter-by-quarter basis—compared to 14.8% in 2010.[57]

State enterprise and investment

The public sector is used both as an investor and as a catalyst for economic development and innovation. The government of Singapore has two sovereign wealth funds, Temasek Holdings and GIC Private Limited, which are used to manage the country's reserves.[58] Initially the state's role was oriented more toward managing industries for economic development, but in recent decades the objectives of Singapore's sovereign wealth funds have shifted to a commercial basis.[59]

Government-linked corporations play a substantial role in Singapore's domestic economy. As of November 2011, the top six Singapore-listed GLCs accounted for about 17 percent of total capitalization of the Singapore Exchange (SGX). These fully and partially state-owned enterprises operate on a commercial basis and are granted no competitive advantage over privately owned enterprises. State ownership is prominent in strategic sectors of the economy, including telecommunications, media, public transportation, defence, port, airport operations as well as banking, shipping, airline, infrastructure and real estate.[59]

As of 2014, Temasek holds S$69 billion of assets in Singapore, accounting for 7% of the total capitalization of Singapore-listed companies.[60][61]

Sectors

To maintain its competitive position despite rising wages, the government seeks to promote higher value-added activities in the manufacturing and services sectors. It also has opened, or is in the process of opening, the financial services, telecommunications, and power generation and retailing sectors up to foreign service providers and greater competition. The government has also attempted some measures including wage restraint measures and release of unused buildings in an effort to control rising commercial rents with the view to lowering the cost of doing business in Singapore when central business district office rents tripled in 2006. [citation needed]

Banking

Singapore is considered a global financial hub, with Singapore banks offering world-class corporate bank account facilities. These include multiple currencies, internet banking, telephone banking, checking accounts, savings accounts, debit and credit cards, fixed term deposits and wealth management services.[62] According to the Human Rights Watch, due to its role as a financial hub for the region, Singapore has continually been criticised for reportedly hosting bank accounts containing ill-gotten gains of corrupt leaders and their associates, including billions of dollars of Burma's state gas revenues hidden from national accounts.[63] Singapore has attracted assets formerly held in Swiss banks for several reasons, including new taxes imposed on Swiss accounts and a weakening of Swiss bank secrecy. Credit Suisse, the second largest Swiss bank, moved its head of international private banking to Singapore in 2005. [citation needed]

Tax evasion is illegal in Singapore; however, according to an Organisation for Economic Co-operation and Development official, Singaporean authorities tend to cooperate with other countries' tax authorities only when evasion of Singaporean taxes is involved.

Biotechnology

Singapore is aggressively promoting and developing its biotechnology industry. Hundred of millions of dollars were invested into the sector to build up infrastructure, fund research and development and to recruit top international scientists to Singapore. Leading drug makers, such as GlaxoSmithKline (GSK), Pfizer and Merck & Co., have set up plants in Singapore. On 8 June 2006, GSK announced that it is investing another S$300 million to build another plant to produce paediatric vaccines, its first such facility in Asia.[64] Pharmaceuticals now account for more than 8% of the country's manufacturing production.[65]

Energy and infrastructure

Singapore is the pricing centre and leading oil trading hub in Asia. The oil industry makes up 5 per cent of Singapore's GDP, with Singapore being one of the top three export refining centres in the world. In 2007 it exported 68.1 million tonnes of oil. The oil industry has led to the promotion of the chemical industry as well as oil and gas equipment manufacturing.[66] Singapore has 70 per cent of the world market for both jack-up rigs and for the conversion of Floating Production Storage Offloading units. It has 20 per cent of the world market for ship repair, and in 2008 the marine and offshore industry employed almost 70,000 workers.[67]

Trade, investment and aid

Singaporean exports in 2006
Singapore Export Treemap by Product (2014) from Harvard Atlas of Economic Complexity

Singapore's total trade in 2014 amounted to S$982 billion. Despite its small size, Singapore is currently the fifteenth-largest trading partner of the United States.[68] In 2014, Singapore's imports totalled $464 billion, and exports totalled $519 billion. Malaysia was Singapore's main import source, as well as its largest export market, absorbing 18% of Singapore's exports, with the United States close behind.

Malaysia is Singapore's biggest trading partner, with bilateral trade totalling roughly 91 billion US dollars in 2012, accounting for over a fifth of total trade within ASEAN. Singapore’s trade with major trading partners such as Malaysia, China, Indonesia and South Korea increased in 2012, while trade with EU27, United States, Hong Kong and Japan decreased in 2012. Since 2009, the value of exports exceeds imports for Singapore’s trade with China. In comparison, the value of imports exceeds exports for Singapore’s trade with the US since 2006.[69][70]

Re-exports accounted for 43% of Singapore's total sales to other countries in 2000. Singapore's principal exports are petroleum products, food/beverages, chemicals, textile/garments, electronic components, telecommunication apparatus, and transport equipment. Singapore's main imports are aircraft, crude oil and petroleum products, electronic components, radio and television receivers/parts, motor vehicles, chemicals, food/beverages, iron/steel, and textile yarns/fabrics.

Trade in Singapore has benefited from the extensive network of trade agreements Singapore has passed. According to Healy Consultants, Singapore has free trade access to the entirety of the ASEAN network, with import duty reduced when dealing with Indonesia, Malaysia, the Philippines, Thailand, Brunei, Burma, Cambodia, Laos and Vietnam.

The Singapore Economic Development Board (EDB) continues to attract investment funds on a large-scale for the country despite the city's relatively high-cost operating environment. The US leads in foreign investment, accounting for 40% of new commitments to the manufacturing sector in 2000. As of 1999, cumulative investment for manufacturing and services by American companies in Singapore reached approximately $20 billion (total assets). The bulk of US investment is in electronics manufacturing, oil refining and storage, and the chemical industry. More than 1,500 US firms operate in Singapore.

Singapore's largely corruption-free government, skilled workforce, and advanced and efficient infrastructure have attracted investments from more than 3,000 multinational corporations (MNCs) from the United States, Japan, and Europe. Foreign firms are found in almost all sectors of the economy. MNCs account for more than two-thirds of manufacturing output and direct export sales, although certain services sectors remain dominated by government-linked corporations.

The government also has encouraged firms to invest outside Singapore, with the country's total direct investments abroad reaching $39 billion by the end of 1998. The People's Republic of China was the top destination, accounting for 14% of total overseas investments, followed by Malaysia (10%), Hong Kong (8.9%), Indonesia (8.0%) and US (4.0%). The rapidly growing economy of India, especially the high technology sector, is becoming an expanding source of foreign investment for Singapore. The United States provides no bilateral aid to Singapore, but the US appears keen to improve bilateral trade and signed the US-Singapore Free Trade Agreement. Singapore corporate tax is 17 per cent.[citation needed]

Year Total trade Imports Exports % Change
2000 $273 $135 $138 21%
2001       −9.4%
2002 $432     1.5%
2003 $516 $237 $279 9.6%
2004 $629 $293 $336 21.9%
2005 $716 $333 $383 14%
2006 $810 $379 $431 13.2%
2014 $983 $464 $519 21.3% change from 2006 to 2014

All figures in billions of Singapore dollars.

International trade agreements

Economy Agreement Abbreviation Concluded Signed Effective Legal text
Australia Comprehensive Strategic Partnership CSP 6 May 2016[71] 2015
New Zealand Agreement between New Zealand and Singapore on a Closer Economic Partnership ANZSCEP 18 August 2000 14 November 2000 1 January 2001 [1]
European Free Trade Association Agreement between the EFTA States and Singapore EFTA-Singapore FTA 11 April 2002 26 June 2002 1 January 2003 [2]
Japan Agreement between Japan and the Republic of Singapore for a New-Age Economic Partnership JSEPA October 2001 13 January [3]
United States United States-Singapore Free Trade Agreement USSFTA 19 November 2002 6 May 2003 1 January 2004 [4]
Jordan Singapore Jordan Free Trade Agreement SJFTA 29 April 2004 16 May 2004   [5]
Brunei Trans-Pacific Strategic Economic Partnership Agreement Trans-Pacific SEP   August 2005 1 January 2006 [6]
Chile 18 July 2005
New Zealand 18 July 2005
India India – Singapore Comprehensive Economic Cooperation Agreement India-Singapore CECA November 2004 29 June 2005 1 August 2005 [7]
Korea Korea-Singapore Free Trade Agreement KSFTA 28 November 2004 4 August 2005 End 2005 [8]
Peru Peru-Singapore Free Trade Agreement PesFTA September 2007 29 May 2008 Early 2009

Singapore workforce

In 2000, Singapore had a workforce of about 2.2 million. The country has the largest proficiency of English language speakers in Asia, making it an attractive place for multinational corporations.[72] The National Trades Union Congress (NTUC), the sole trade union federation which has a symbiotic relationship with the ruling party, comprises almost 99% of total organised labour. Government policy and pro-activity rather than labour legislation controls general labour and trade union matters.[citation needed]

The Employment Act offers little protection to white-collar workers due to an income threshold. The Industrial Arbitration Court handles labour-management disputes that cannot be resolved informally through the Ministry of Manpower. The Singapore Government has stressed the importance of co-operation between unions, management and government (tripartism), as well as the early resolution of disputes. There has been only one strike in the past 15 years.

Singapore has enjoyed virtually full employment for long periods of time. Amid an economic slump, the unemployment rate rose to 4.0% by the end of 2001, from 2.4% early in the year. Unemployment has since declined and as of 2012 the unemployment rate stands at 1.9%.[73]

While the Singapore government has taken a stance against minimum wage and unemployment benefit schemes, in 2007 the government introduced a Workfare Income Supplement (WIS) scheme to supplement wages of low-skilled workers.[74] In order to support employers in hiring older Singaporean workers, Special Employment Credit (SEC) was introduced in 2011. It was first enhanced in 2012 to provide employers with support in hiring older Singaporean workers and Persons with Disabilities (PWDs). It helped the employers to cope with costs associated with the increase in Central Provident Fund (CPF) contribution rates for older workers. The 5 year SEC scheme was further extended to additional 3 years, up to 2019 to encourage employers to voluntarily re-employ older workers aged 65 and above.[75]

The Singapore Government and the NTUC have tried a range of programs to increase lagging productivity and boost the labour force participation rates of women and older workers. However, labour shortages persist in the service sector and in many low-skilled positions in the construction and electronics industries. Foreign workers help make up this shortfall. In 2000, there were about 600,000 foreign workers in Singapore, constituting 27% of the total work force. As a result, wages are relatively suppressed or do not rise for all workers. To have some controls, the government imposes a foreign worker levy payable by employers for low end workers like domestic help and construction workers.[76] In 2012, the Ministry of Trade and Industry (MTI) reported that Singapore should continue to fine-tune the calibration of its inflow of foreigners as the country continues to face an ageing population and a shrinking workforce. Singapore Parliament accepted the recommendations by its Economic Strategies Committee (ESC) for the optimal ratio of the level of immigration and foreign manpower for both high and low skilled workers.[77] The Government recognises that the current overall foreign workforce should complement the local resident workforce and not replace the Singaporean Core concept, and helps companies greatly as they raise productivity through business restructuring and workforce retraining; raise resident labour force participation rate.[78][79]

Public finance

Government spending in Singapore has risen since the start of the global financial crisis, from around 15% of GDP in 2008 to 17% in 2012. The government's total expenditure as a percentage of GDP ranks among the lowest internationally and allows for a competitive tax regime.[80][81][82] Singapore is required under its constitution to keep a balanced budget over each term of government. Singapore government debt is issued for investment purposes, not to fund expenditure.[83][84][85]

Personal income taxes in Singapore range from 0% to 20% for incomes above S$320,000. There are no capital gains or inheritance taxes in Singapore.[86][87] Singapore's corporate tax rate is 17% with exemptions and incentives for smaller businesses. Singapore has a single-tier corporate income tax system, which means there is no double-taxation for shareholders.[88]

Singapore introduced Goods and Services Tax (GST) with an initial rate of 3% on 1 April 1994, increasing government's revenue by S$1.6 billion (US$1b, €800m) and establishing government finances.[89] The taxable GST was increased to 4% in 2003, to 5% in 2004, and to 7% in 2007.[90]

The Singapore government owns two investment companies, GIC Private Limited and Temasek Holdings, which manage Singapore's reserves. Both operate as commercial investment holding companies independently of the Singapore government, but Prime Minister Lee Hsien Loong and his wife Ho Ching serve as chairman and CEO of these corporations respectively.[91][92][93] While GIC invests abroad, Temasek holds 31% of its portfolio in Singapore, holding majority stakes in several of the nation's largest companies, such as Singapore Airlines, SingTel, ST Engineering and MediaCorp.[60] As of 2014, Temasek holds S$69 billion of assets in Singapore, accounting for 7% of the total capitalisation of Singapore-listed companies.[60][61]

In April 2013, the country was recognised[by whom?] as an increasingly popular tax haven for the wealthy due to the low tax rate on personal income, a full tax exemption on income that is generated outside of Singapore and 69 double taxation treaties[62] that can minimise both withholding tax and capital gains tax. Australian millionaire retailer Brett Blundy, with an estimated personal wealth worth AU$835 million, and multi-billionaire Facebook co-founder Eduardo Saverin are two examples of wealthy individuals who have settled in Singapore (Blundy in 2013 and Saverin in 2012). Additionally, Australian mining magnate Gina Rinehart owns property in Singapore[94] and American investor Jim Rogers moved to Singapore in 2007—Rogers has identified the 21st century as an era in which Asia will dominate and wishes for his two daughters to learn Mandarin as a key outcome of the relocation.[95][96] Chinese Media TV celebrities Jet Li and Gong Li have also taken up naturalised Singapore citizenship.[97][98]

Monetary policy

The Monetary Authority of Singapore is Singapore's central bank and financial regulatory authority. It administers the various statutes pertaining to money, banking, insurance, securities and the financial sector in general, as well as currency issuance. The MAS has been given powers to act as a banker to and financial agent of the Government. It has also been entrusted to promote monetary stability, and credit and exchange policies conducive to the growth of the economy.

Unlike many other central banks such as Federal Reserve System or Bank of England, MAS does not regulate the monetary system via interest rates to influence the liquidity in the system. Instead, it chooses to do it via the foreign exchange mechanism. It does so by intervening in the SGD market.[99]

Facts & figures

Percentage of economic growth: 1.7% (2016)[100]

Industrial production growth rate: 1% (2016 est.)

Electricity – production: 41.137.7 billion kWh (2007)

Electricity – production by source:
fossil fuel: 95.3%
hydro: 0%
nuclear: 0%
other: 3.9% (2014 est.)

Electricity – consumption: 37.420.3 billion kWh (2007)

Electricity – exports: 0 kWh (2007)

Electricity – imports: 0 kWh (2007)

Agriculture – products: rubber, copra, fruit, vegetables; poultry, eggs, fish, orchids, ornamental fish

Currency: 1 Singapore dollar (S$ or SGD) = 100 cents

Exchange rates: [101]

Year Singapore Dollars per US$1
1981 2.0530
1985 2.1213
1990 1.7275
1995 1.4148
2000 1.7361
2005 1.6738
2011 1.2573
2012 1.2498
2013 1.2513
2014 1.2671
2015 1.3748
2016 1.379

International rankings

Main article: International rankings of Singapore

See also

References

  1. ^ a b c d "World Economic and Financial Surveys World Economic Outlook Database". International Monetary Fund. International Monetary Fund. 15 September 2015. Retrieved 15 September 2015.
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