No Singapore Is Not A Village In China.....

Having first moved to Singapore during the beginning of 1992, I have experienced first-hand the incredible growth that this city-state has encountered during the last couple of decades. The country has progressed leaps-and-bounds which is made all the more impressive considering it only achieved a position of independence as recently as 1965. Singapore is now considered as one of the leading financial centres in the world and an Asian economic power-house alongside Tokyo and Hong Kong.

The one thing that has frequently irked me during periods that I spend away from Singapore is the lack of knowledge and recognition that many people around the world afford to the country. I have countless memories about questions that people have asked, when they find out that I am based there. "Singapore? That's a city in China right?", "Really? But your not Chinese are you?", "Is that the capital? Oh.... or is it Beijing?" These are a few examples of the slighly more intelligent reponses that I've heard. In order to preserve the dignity or lackthereof of the responsible few, I won't post the rest. Therefore I have decided to reflect upon a few articles that I have read recently about the economic growth within the country. Hopefully this will provide a 'baby-step' in enhancing the country's visibility as well as minimising the irksome responses that I will have to encounter.

Whilst Singapore has become synonymous for it's strict governmental policies and has even earned the nickname of 'Fine City', there has been an easing of such restrictions to continue the country's rapidly growing economy. This has triggered large investment into the country with the construction of casinos, trendy restaurants and night-spots as well as theme parks. This was a necessary step in order for the government to succeed in its ambitious plans of making Singapore the number one financial and entertainment hub in Asia.

Lift on Singapore's Casino Ban To Encourage Economic Growth

An article published by 'AllBusiness' reflects how during 2005, the government legalized casino gambling in an attempt to further boost the economy. Similarly to the United States, Singapore has suffered from the growth of China and India as this has led to lost manufacturing jobs. The article reports the views of a consultancy expert who reflected, "This is really a bold move by a governement that has traditionally been conservative. Projections are that the GDP will grow by 1% just because of the casinos and 100,000 jobs will result from construction".

The expose from 'AllBusiness' is a rather brief extract but succeeds in presenting an interesting topic with enough information and analysis to be a credible source. The style of writing is 'informative' and although there is the inclusion of several quotes, there does not seem to be any bias towards one perspective or another.

Singapore's Growth Beats Estimates on Construction

An extract from 'Bloomberg' reported the rapid rate of expansion of the Singaporean economy. The opening line of the article was succinct, "Singapore's economy expanded 7.6% in the first quarter amid a boom in construction, exceeding all forecasts and increasing the likelihood that growth this year can withstand a U.S. slowdown."

'Bloomberg' highlighted the impact of the new casinos, as "builders broke ground on a $3.3 billion casino-resort last quarter, helping spur the fastest construction rate in nine years." It seems that the construction was not the only sector that was prospering as financial heavy-weights, "Merrill Lynch and Morgan Stanley are among businesses expanding operations, as the government cuts corporate taxes to lure international financial services companies and reduce the economy's dependence on manufacturing."

The article uses the inclusion of quotations of an economist at Standard Chartered Bank in Singapore to add some financial expertise to the equation. "The domestic growth story is extremely strong at this point in time, driven primarily by real estate as well as equities." When an expert gives his own perspectives on a given subject, this works to persuade the average reader that the results being presented can be verified by a specialist in the field.

Whilst there is no disputing that the world in general is dependent on the stability of the U.S. economy, it is a testament to Singapore's progress that they are far less reliant, which is a luxury that few countries in the world could claim. Their ambition of becoming a central hub in Asia seems to be gather pace. This is exemplified as, "Merrill Lynch is building an office block that will house 900 employees when it opens at the end of next year, making Singapore its largest center in Asia. Morgan Stanley will open a prime brokerage office this year to be closer to its hedge-fund clients". The introduction of companies with such a great prestige can not be undermined as this brings in foreign-investment and higher net-worth individuals. As the article correctly states, "this spills over to the rest of the economy."

The Paradox of Singapore's Economic Growth: Time and Income

After having looked over numerous articles reflecting up Singapore's successes and fascinating growth rate, I felt that the only way to present a balanced arguement, would be to uncover some of the negative aspects that can be attributed to such growth. I came across an article by 'The Temasek Review', which is a platform where news and opinions are presented from an 'independent perspective'. There are some captivating points highlighted and reflects upon 'the other side of the coin'.

The review starts off by mentioning how, "In a typical economic growth model, the assumption is that an economy that grows from a low income to a higher income suggests that the economic growth will bring along positive growth with regards to 'real incomes' and 'leisure time'." This means that due to the population earning a higher income, they should be able to possess a great level of 'purchasing power' as well as have the freedom to spend more time doing the things that they enjoy, as a result of a greater level of efficiency in work and technological improvements. The author points to the fact that this is not the case in Singapore. Whilst "an average income in Singapore in 2008 was 42 times more than that in 1960", there are still "fewer people calling their incomes as comfortable or sufficient". This perspective is hammered home with various arguements that suggests that Singaporean workers are being overworked with 'increased working hours', 'greater pressure to have two-workers in a family unit' and 'incomes unable to compete with rising costs'.

I have to admit that whilst I give credit to the perspectives put forth, I feel the article was written with an excessive amount of venom that prevented me from taking everything being said too seriously. Whilst the article was well presented, it would have given itself more justice if it had presented a countering arguement. In my perspective, it was obviously written by a local Singaporean who had experienced the influx of foreigners into the country and felt aggrieved by the inability to match their lifestyle. It is hard to determine what type of living standard is 'sufficient' and primarily depends on the expectations of the individual. One must sympathise with the locals as it is justifiable that many are maybe not given the same opportunities as a 'foreign skilled worker', but I have witnessed first-hand that the government has several measures in place to maintain and improve the quality of 'government housing' that the Singaporeans benefit from, which is significantly more cost-efficient and to a higher standard than most countries around the world are able to provide. It is important for the country as a whole to accept the fast-paced changes and embrace this level of growth, rarely seen in other parts of the world.



Websites Read:
http://www.bloomberg.com/apps/news?pid=20601068&sid=aUvv19DCPWVA&refer=economy

http://www.allbusiness.com/operations/facilities-commercial-real-estate/4423440-1.html

http://www.temasekreview.com/2009/09/23/the-paradox-of-singapore%E2%80%99s-economic-growth-time-income/