Singapore

SINGAPORE, A SMALL country in southeast Asia, gained independence from Great Britain and Malaysia after 1965. A developing country with a low Gross Domestic Product (GDP) per capita in 1960, Singapore became a newly developed country in 2004. It has one of the highest GDPs per capita in the world ($27,800 in 2004). Singapore's vision, to become an intelligent society and a technological hub in the region, has materialized with the successful implementation of national policies and the IT2000 Masterplan. Four main factors helping Singapore to escape poverty are leadership, political stability, appropriate social policies promoting racial harmony, and steady economic growth.

Singapore has a one-party government and a unicameral parliament. The People's Action Party (PAP) has dominated Singapore politics since 1965. Under the leadership of Mentor Minister Lee Kuan Yew (the first prime minister of Singapore, from 1959 to 1990) and Senior Prime Minister Goh Chok Tong (the second prime minister of Singapore, from 1990 to 2004), the country enjoyed political stability, an efficient government, a very low level of corruption, and minimized bureaucracy and red tape, and has implemented effective public services.

Singapore began restructuring its economy in 1979. Educational, economic, and social policies were modified to adapt with regional changes and to stimulate economic growth. Attractive education and healthcare programs have enabled Singapore to become a regional hub for first-class universities and medical services. Intensive technological investment and advanced educational systems with computer education have provided Singapore with a highly skilled workforce. Financial incentives such as tax concessions, and faster business registration processes and approval have been offered to enterprises, especially those in the high-tech, biotechnology, and life science industries. Relevant industries have been encouraged to improve the quality of products to achieve international standards.

Other economic activities focus on the innovative development of main industries such as manufacturing, the high-tech sector, biotechnology, and the life sciences. Promising local enterprises have been financially and institutionally supported in order to develop their potential and to increase their competitive advantage in the global market. With the establishment of the Monetary Authority of Singapore (MAS) in 1979, fiscal and monetary policies have been well formulated and implemented in the country. Together with the Amended Employment Act and the Industrial Relations Act in 1968, the tripartism approach in industrial relations has helped to promote industrial harmony.

A public housing program was given top priority. The government has promoted racial harmony by setting the racial ratio in the recruitment of public servants and in the occupancy of public housing, and by organizing many cross-cultural activities. The foreign talents program has drawn many international professionals to work in Singapore, and has significantly contributed to its economic expansion.

Consequently, Singapore can attract foreign investment because of its central location in the region, efficient planning, advanced infrastructure, highly skilled workforce, a well-established financial system, and a stable legal environment. Although the 1997 economic crisis and the 2003 SARS outbreak slowed down the economic growth rate, Singapore has maintained a strong economic foundation, and social and political stability. Overall, Singapore has successfully transformed from a Third World to a First World country. The Singapore government has proved its ability to lead the country through the hard times and to deal with new threats and challenges.

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