Singapores Background Singapore is located at the southern tip of the Malay Peninsula as an island country.

It is a highly developed state capitalist that combined a variety of government and private control firms. Moreover, 60% of the countrys GDP is through government entities such as Temasek Holdings, Singapore Airlines, MediaCorp and SingTel. The country practiced export oriented economy policy that exports electronics, chemicals and services. The main exports are to Hong Kong, Malaysia and China. In fact, export is the main source of revenue for the economy and in 2009 itself it had generated $268.9 billion. However, Singapore depends heavily from neighbouring countries for food and raw materials as it has limited land for plantations. Besides that, Singapore is adjusting itself as the regions financial and high tech centre comparing with other Asian countries. Hail as one of the Asian Four Tigers, the island country is the worlds fourth leading financial centre. Not to mention, Singapore also has one of the busiest ports in the world. Singapore is a densely populated country with 5 million people from various nationalities made up for the population. The majority of the population is Chinese and followed by Malays. Interestingly, 42% of Singapores population are foreigners that mainly from China and Malaysia. In fact, foreigners in the island make up for 50% of its service sector. In addition, the education system of Singapore has been described as world leading in 2010 by British Education Secretary, Michael Gove. Education has been the priority for the government and it has the second largest budget after defence. The main language of instruction for all subjects is conducted in English. Furthermore, the education system in Singapore has been a success with literacy rate of 96%. The health-care of Singapore is easily available and efficient. The government also ensures affordability for the society from all walks of life. Moreover, it has introduced MediSave as a form of saving part of their income to meet future medical fees. Lastly, Singapore has been widely known as having the best quality of life in Asia and eleventh in the entire world by the Economist Intelligence Unit of life index.

Economic Growth Economic growth is a yardstick for the standards of living in a country. The growth can either be positive or negative. Positive growth is known as expansion while negative growth is related to shrinking. Economic growth is indicated either by an increase in real GDP or an increase in real GDP per capita over a period of time. A growing economy is often sought after by lots of nations as it rise the real wages and incomes of people hence palliate poverty and increases the level of consumptions and productions. Often time, economic growth is known as the quantity of goods and services produced but Singapore as an industrialized country is able to obtain food and natural resources from other countries. Singapore has a great education system and the nations literacy rate is at 96%, which is among the highest in the world. Moreover, the financial institutions in the country are efficient. An annual ranking by the World Bank in June 2010 crowned Singapore as the easiest country to do business as the government is emphasising on e-government initiatives followed by transparency and efficiency for businesses. These factors are crucial for economic growth for a country. Singapores Annual GDP from 2005 to 2009 Year 2005 2006 2007 2008 2009 SG$ Million 208.763 230.509 266.405 273.537 265.057 US$ Million 125.413 145.074 176.766 193.339 182.233

Singapores GDP from 2005 to 2009 in SG$ and US$.

300,000.00

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200,000.00 S$ Million US$ Million 100,000.00

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Gross domestic product (GDP) is an indicator for standard of living in a country. Simultaneously, it reflects the economys performance. By looking at the figures of GDP, from 2005 to 2008, the countrys GDP increased steadily. However, the GDP for 2009 decreased due to the global financial turmoil. Comparisons of 2005-2009 GDP among South-East Asia Countries Countries Year GDP 2005 2006 2007 2008 2009 Malaysia US$ Billion 137.848 156.523 186.642 221.828 193.093 Thailand US$ Billion 176.352 207.228 247.111 272.429 263.772 Indonesia US$ Billion 285.869 364.571 432.105 510.502 540.274 Singapore US$ Billion 125.413 145.074 176.766 193.339 182.233

2009 GDP in US$ (Billion) for Malaysia, Thailand, Indonesia and Singapore

2009 GDP US$ (Billion)

Malaysia Thailand Indonesia Singapore

Singapores GDP per capita from 2005 to 2009 in SG$ and US$ Year 2005 2006 2007 2008 2009 SG$ 48,939 52,372 58,058 56,523 53,143 US$ 29,400 32,961 38,523 39,951 36,537

GDP per capita of a country is equal to the GDP divided by the population in the country. Singapore GDP per unit in 2009 was at US$ 36,379 and it is the highest among the SouthEast Asia countries. Next in line is Brunei with US$ 25,386.

(http://www.ambsingapore.um.dk/NR/exeres/04A1A0E2-16A1-4959-BB5854463C0E2C03.htm?wbc_purpose=Basic&WBCMODE=PresentationUnpublished)

(http://ukinsingapore.fco.gov.uk/en/business/in-focus/recent-visits-and-events/michael-gove) (https://www.cia.gov/library/publications/the-world-factbook/geos/sn.html) The Star, Biz section, September 9, 2010.

(http://www.singstat.gov.sg/stats/themes/economy/hist/gdp2.html)