subject: Singapore Economic Growth and Development [print this page] Singapore Economic Growth and Development
There has been a substantial increase in the share of manufacturing, transport and communication and financial and business services within the GDP at the expense of the trade sector (in particular entrept trade).
Resources were reallocated from the tertiary- and primary sector to the secondary sector.
Diversification in the economic base has changed the city-state's reliance on its own manufacturing sector and on its function as an international financial- and business services and communication and transport centre.
Increased sophistication of its economy was achieved through constant upgrading and restructuring.
The structural change in the economy is also reflected by the rising expenditure on Gross Domestic Product Expenditure, Gross National Savings rose too. They accounted for an ever-increasing percentage of total investment.
The important part that international companies play in Singapore's economy marks another major change.
The growth of manufacturing, up to 1965, was caused by growth in the domestic market itself and in the supply incentives created by the government.
The spectacular growth acceleration in the 1966-1973 period, reflected the switch to greater export orientation of local firms and the heavy inflow of multinational corporations with footholds in world markets.
In the 1970's the industrial pattern became increasingly diversified.
Manufacturing activity tends to be of an 'enclave' character due to its high degree of
import-, export- and foreign investment dependence.
Mainly the expanding manufacturing sector stimulated the growth of the financial and business sector in the sixties. Growth in the seventies was also the result of the government policy to develop Singapore into an international financial centre.
The rising volumes of loans and deposits, the spectacular expansion of the Asian Dollar Market and Asian Bond Market illustrate the development of Singapore's financial centre.
The twofold objective of encouraging the establishment of foreign banks and financial institutions are: to enhance banking and financial expertise and to induce foreign industrialists to invest in Singapore.
The transport and communication sector, after having experienced a period of decline and stagnation in the sixties, showed a considerable increase in share of GDP in the seventies.
Singapore is one of the world's busiest ports benefiting from the great stream of trade that flows through Asia's waterways.
Singapore continues to be a major entrept for its neighbours.
The development strategy of the seventies grasped the idea of further development of Singapore as a transport and communication centre.
The trade sector has been of relatively large importance in Singapore. The nature of the trade is changing. Entrept trade as a whole will shift from the handling and processing of primary products to more sophisticated finished products, from low price high-volume to higher price lower-volume trade.
In the 1970's Singapore has emerged as a major manufacturing site. Singapore's trade deficit reflects its characteristic dependence on imports for all its consumption and industrial requirements. Both on the import side as well as on the export side changes have occurred in composition by commodity section and in distribution over the different countries.
Even though there is an imbalance between imports and exports the overall balance of payment shows a continuous surplus. Singapore's trade deficits were overcompensated by: net service earnings, influx of foreign investments, foreign short-term and long-term capital inflows and the very large balancing item.By Raymond Le Blanc. If you want to learn more about the economic growth and development in Singapore during the 1960-1980 period visit http://cranendonk.com/singapore.htmhttp://www.articlesbase.com/news-and-society-articles/singapore-economic-growth-and-development-4409593.html
