Technology are the driving forces of singapores

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technology are the driving forces of Singapore’s economy, the nation and its economy are still monitored and controlled by governmental rule. On the contrary to many developing countries, government intervention in Singapore is restrained and applied only when necessary. It works in a mechanism to support and improve the economy, not to refrain it. An example is housing control to prevent the volatility of real estate bubbles. Housing in Singapore doesn’t follow the market mechanism, but rather governmental central planning. During the 2008 recession, the government cut half of the required Central Provident Fund contribution from employers in order to reduce the unemployment rate to 4.7%. The Singaporean government transforms its working mechanism to cooperate and work in tandem with its economic development (White 2012).
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The winners in Singapore are the oil refining industry, finance and banking services, logistics, and electric and biotech manufacturing. These winners are represented through the outlier perspective, from the process of globalization in which the government created these opportunities for the financial and manufacturing sectors. It is hard to deny that these economic sectors’ exceptional endeavors to continuously innovate and upgrade greatly contributed to their success. The opportunities they got, however, were the key in making them the winners. The success of Singapore’s logistics is attributed to its geographic location at the end of the Straits of Malacca. This location makes Singapore a natural port for international sea transportation. Besides this, since the very beginning, aware of their geographic advantage, Singapore’s government gathered most of its capital to build and upgrade the port and related infrastructure. In the 1960s, Singapore suffered from a high unemployment rate. To solve this problem, the government focused on building its manufacturing sector to create more jobs. In the 1970s, the government, by using various incentives, successfully attracted foreign investment in local companies and encouraged foreign companies to operate in Singapore. An example of the incentives used is the promise to allow new foreign companies to remain tax-free for up to five years. In addition, the inflows of foreign investment from Western countries served as the basis for the genesis of Singapore’s financial sector. By 1980s, many leading financial institutions had set up operations in Singapore (White 2012). Since early 1960s, Singapore’s government deliberately attracted multinational oil companies like Shell and Esso to set up their first oil refineries in Singapore. Government efforts were the basis for the development of Singapore’s refining industry. On the contrary, agriculture became the loser in the process of globalization.
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