Singapores Economy

Question 1

Singapore economy 60s

Answer 1

Strategy: immediate seeking of Foreign investment
Requested for UN advisors and initiative to establish institution of foreign investment
Economic Development Board (EDB) set up in 1961
Officers went internationally to promote SG as low cost manufacturing base
1961 Jurong Industrial Town (JIT); provided industrial base
Economic Expansion Incentives Act (1967); allowed foreign companies to get pioneer status with tax benefits

Effects:
GDP growth at 6%
Manufacturing share of GDP grew to 15%
Allowed SG to adopt new tech

Question 2

Singapore economy (70s)

Answer 2

Tax incentives scheme reviewed; pioneer status changed to 15 years
Tax incentives significantly cut production costs by 1/3
Government took over investments in areas lacking
To help finance public investment created CPF social security scheme; improved workforce
Oversaw labour conditions; NTUC

Effects:
Unemployment only 3%
Manufacturing sector grew to 25% of GDP
GDP growth rate of 10%

Question 3

Singapore economy (80s)

Answer 3

National Computer Board (NCB) in 1981; training of workers in IT related industries to attract IT firms investment
Extension of pioneer status scheme in 1983; pioneer status extended to financial service providers

Effects:
GDP growth still at 7.3% (high)
IT sales increased by more than 10x

Question 4

Singapore Economy (90s)

Answer 4

Clustering if high tech institutions; NUS and NTU
SIJORI growth triangle; relocated Singapore’s investments into nearby areas

Effect:
Financial services about 30% of GDP
GDP growth of 8%

Question 5

Singapore Financial sector

Answer 5

Incentives provided for the continued diversification and automation of financial services
Political stability and infrastructure important attractions of international bankers and investors