Despite the rather small domestic market, Singapore’s economy is actively involved in the global market activities. Singapore's economy is recognized as the second open economies in the world, according to the Index of Economic Freedom - index, calculated annually by Heritage Foundation Fund. At the macroeconomic level, it can be characterized as one of the most stable economies, with no external debt, high state profit and constant increase in capital reserve. During the financial crisis in 1997, while the economies of neighboring countries underwent challenges, Singapore's economy has remained relatively stable. Singapore endured the global economic 2008 crisis and, in fact, came out of recession, becoming one of the world fastest growing economies in 2010, while developed economies of the U.S. and Europe continued to suffer from the effects of the crisis. And even taking into account that Singapore doesn’t have any natural resources reserve and has limited territory. It played no important role in the strengthening of Singapore’s position among other countries to achieve its leading position.
Singapore's economy has withstood heavy pressure and was set in motion due to:
- Export of electronics and operating equipment
- Highly professional and high quality financial services
- Maritime traffic (Singapore Port is the largest cargo port in the world)
Speaking about the financial and business services, it should be emphasized that a favorable and supportive business environment in the country of Singapore attracts a large number of multi- national banks with a good worldwide reputation, as well as investment companies. Just imagine - every major bank and investment company of the United States and Europe, which are represented in Asia, opened in Singapore its Asian head office.
Other activities that bring a significant contribution to Singapore's economy include health care, education, casinos, information communications and media.
Singapore, located at the southern end of the Malaysian peninsula and has a territory several times smaller than Moscow or New York, does not have its natural resources. While Singapore manages the world's third largest refinery, raw materials supplied from abroad (mainly from Saudi Arabia).
In Singapore, it is assumed that its main true natural resources - people who live and work here. Its workforce is a key reason for the economic success of the country.
Singapore Government strives to improve and expand the infrastructure of the country in all respects. This applies to both transport (land, air and water), communications, industry and housing system.
You can move around Singapore by land on 3,297.00 km highways, 138.20 km rails. Passengers have an option to use buses and taxis in addition to so called MRT (mass rapid transport system close to subway). To summarize, the transport system of the country is very effective, safe and punctual.
Changi International Airport offers flights to more than 182 cities in 57 countries. Passenger and cargo airport transportation are estimated to be 4,000.00 thousand flights weekly.
Sea Port of Singapore offers carriers the choice of more than 200 shipping companies and provides access to 600 ports in 123 countries. At the same time the docks in the port of Singapore may be not less than 1,000.00 ships. Thereby Singapore port is considered to be one of the busiest container ports in the world.
GDP. SOURCES OF INCOME AND STATE RESERVE CAPITAL
Singapore's economy grew by 4.9% in 2011. According to the British news agency, “Bloomberg ", Singapore's GDP amounted to S $ 326.8 billion in 2011.
As in most other countries, Singapore earns the largest portion of revenues through taxes – income taxes, property taxes , goods and services taxes, excise and customs duties and others. For the 2010-11 fiscal year income tax rate was 91 % of all government operating revenues. Other sources of income are the fees for issuing licenses and permits, fees for renting residential and business premises; fines and confiscation, as well as capital receipt from the sale of capital goods values , such as land. Free Singapore contingency budget for 2011 is estimated at S $ 2.3 billion, or 0.7 % of GDP.