Economy of Singapore

The economy of Singapore is a highly developed free-market economy. Singapore's economy has been ranked as the most open in the world, 7th least corrupt, most pro-business, with low tax rates (14.2% of Gross Domestic Product, GDP) and has the third highest per-capita GDP in the world in terms of Purchasing Power Parity (PPP). APEC is headquartered in Singapore.

Government-linked companies play a substantial role in Singapore's economy. Sovereign wealth fund Temasek Holdings holds majority stakes in several of the nation's largest companies, such as Singapore Airlines, SingTel, ST Engineering and MediaCorp. The Singaporean economy is a major Foreign Direct Investment (FDI) outflow financier in the world. Singapore has also benefited from the inward flow of FDI from global investors and institutions due to its highly attractive investment climate and a stable political environment.

Exports, particularly in electronics, chemicals and services including Singapore's position as the regional hub for wealth management provide the main source of revenue for the economy, which allows it to purchase natural resources and raw goods which it lacks. Moreover, water is scarce in Singapore therefore it is defined as a precious resource along with the scarcity of land to be treated with land fill of Pulau Semakau. Singapore has limited arable land, meaning that Singapore has to rely on the agrotechnology park for agricultural production and consumption. Human resources is another vital issue for the health of the Singaporean economy. The economy of Singapore ranks 2nd overall in the Scientific American Biotechnology ranking in 2014, with the featuring of Biopolis.

Singapore could thus be said to rely on an extended concept of intermediary trade to Entrepôt trade, by purchasing raw goods and refining them for re-export, such as in the wafer fabrication industry and oil refining. Singapore also has a strategic port which makes it more competitive than many of its neighbours in carrying out such entrepot activities. Singapore's trade to GDP ratio is among the highest in the world, averaging around 400% during 2008–11. The Port of Singapore is the second-busiest in the world by cargo tonnage. In addition, Singapore's port infrastructure and skilled workforce, which is due to the success of the country's education policy in producing skilled workers, is also fundamental in this aspect as they provide easier access to markets for both importing and exporting, and also provide the skill(s) needed to refine imports into exports.

Singapore's government promotes high levels of savings and investment through policies such as the Central Provident Fund, which is used to fund its citizen's healthcare and retirement needs. Most companies in Singapore are registered as private limited-liability companies (commonly known as "private limited companies"). A private limited company in Singapore is a separate legal entity, and shareholders are not liable for the company's debts beyond the amount of share capital they have contributed.

To preserve its international standing and further its economic prosperity in the 21st century, Singapore has taken measures to promote innovation, encourage entrepreneurship and re-train its workforce. Also, to attract foreign talent, the government issues various employment permits and passes, subject to qualification criteria (such as relevant educational and professional experience), quotas, foreign worker levies (taxes), permit/pass fees, minimum insurance requirements, employer-paid repatriation guarantees, permit/pass term limits and renewal requirements, minimum wage thresholds, requirements to advertise open positions to resident workers before accepting foreign workers, limitations on accompanying dependents, and restrictions on marrying citizens, as examples. The exact set of requirements varies depending on the permit or pass type, and the Ministry of Manpower (Singapore) (MoM) is primarily responsible for setting, adjusting, and enforcing foreign worker immigration rules. A small percentage of foreign workers, foreign dependents, and foreign students become Singapore Permanent Residents. Some PRs eventually naturalize as citizens. Singapore has one of the lowest birth rates in the world, so this limited path to citizenship (for about 22,000 per year) is critical to Singapore’s demographic future. Singapore relies heavily on foreign talent across all social strata, and foreign guest workers utterly dominate certain occupations. For example, there are approximately 243,000 Foreign Domestic Workers (FDWs) in Singapore, live-in maids from regional developing countries, who provide domestic services, including child and elder care. As another example, foreign workers, mainly from southern Asia, dominate the manual labor aspects of the construction industry in Singapore. Template:Life in Singapore

Economy Statistics

Economy Statistics (Recent Years) : Year 2011 To Year 2014Template:ClearSources:
Year	[[Gross Domestic Product|GDPTemplate:ClearNominal]]Template:Clear(Billion)	GDPTemplate:ClearNominalTemplate:ClearPer Capita	GDP RealTemplate:Clear(Billion)	[[Gross National Income|GNITemplate:ClearNominal]]Template:Clear(Billion)	GNITemplate:ClearNominalTemplate:ClearPer Capita	[[Foreign Reserves|ForeignTemplate:ClearReserves]]Template:Clear(Billion)	Avg.Template:ClearExchange RateTemplate:Clear(1US$ to S$)
2011	US$275.369Template:ClearS$346.353	US$53,122Template:ClearS$66,816	S$342.371	US$250.515Template:ClearS$338.452	S$65,292	US$237.737	S$1.2573
2012	US$289.941Template:ClearS$362.332	US$54,578Template:ClearS$68,205	S$354.061	US$273.022Template:ClearS$351.765	S$66,216	US$259.307	S$1.2498
2013	US$302.245Template:ClearS$378.200	US$55,979Template:ClearS$70,047	S$324.592	US$294.692Template:ClearS$366.618	S$67,902	US$273.065	S$1.2513
2014	US$308.051Template:ClearS$390.089	US$56,319Template:ClearS$71,318	S$380.585	US$301.638Template:ClearS$378.329	S$69,168	US$256.860	S$1.2671

Economy Statistics Since Year 1970 To Year 2010Template:ClearSources:
Year	[[Gross Domestic Product|GDPTemplate:ClearNominal]]Template:Clear(Billion)	GDPTemplate:ClearNominalTemplate:ClearPer Capita	[[Gross National Income|GNITemplate:ClearNominal]]Template:Clear(Billion)	GNITemplate:ClearNominalTemplate:ClearPer Capita	[[Foreign Reserves|ForeignTemplate:ClearReserves]]Template:Clear(Billion)	Avg.Template:ClearExchange RateTemplate:Clear(1US$ to S$)
1970	US$1.919Template:ClearS$5.876	US$925Template:ClearS$2,832	US$1.937Template:ClearS$5.932	US$934Template:ClearS$2,860	US$1.750	N/A
1975	US$5.789Template:ClearS$13.728	US$2,559Template:ClearS$6,067	US$5.841Template:ClearS$13.851	US$2,582Template:ClearS$6,122	US$3.007	N/A
1980	US$12.078Template:ClearS$25.863	US$5,004Template:ClearS$10,714	US$11.899Template:ClearS$24.536	US$4,747Template:ClearS$10,165	US$6.571	N/A
1985	US$18.555Template:ClearS$40.823	US$6,782Template:ClearS$14,921	US$19.220Template:ClearS$41.161	US$6,838Template:ClearS$15,045	US$12.860	S$2.1213
1990	US$38.899Template:ClearS$70.507	US$12,766Template:ClearS$23,139	US$36.675Template:ClearS$69.798	US$12,638Template:ClearS$22,907	US$27.789	S$1.8125
1995	US$87.891Template:ClearS$124.575	US$24,937Template:ClearS$35,346	US$83.220Template:ClearS$125.475	US$25,117Template:ClearS$35,601	US$68.819	S$1.4174
2000	US$95.835Template:ClearS$165.217	US$23,794Template:ClearS$41,018	US$95.330Template:ClearS$164.205	US$23,648Template:ClearS$40,767	US$80.169	S$1.7239
2005	US$127.417Template:ClearS$212.074	US$29,866Template:ClearS$49,715	US$121.000Template:ClearS$198.050	US$27,891Template:ClearS$46,428	US$116.172	S$1.6646
2010	US$236.420Template:ClearS$322.361	US$46,569Template:ClearS$63,498	US$227.377Template:ClearS$235,076	US$46,305Template:ClearS$63,137	US$225.754	S$1.3635

Economy History

Upon independence from Malaysia in 1965, Singapore faced a small domestic market, and high levels of unemployment and poverty.70 percent of Singapore's households lived in badly overcrowded conditions, and a third of its people squatted in slums on the city fringes. Unemployment averaged 14 percent, GDP per capita was US$516, and half of the population was illiterate.

In response, the Singapore government established the Economic Development Board to spearhead an investment drive, and make Singapore an attractive destination for foreign investment. FDI inflows increased greatly over the following decades, and by 2001 foreign companies accounted for 75% of manufactured output and 85% of manufactured exports. Meanwhile, Singapore's savings and investment rates rose among the highest levels in the world, while household consumption and wage shares of GDP fell among the lowest.

As a result of this investment drive, Singapore's capital stock increased 33 times by 1992, and achieved a tenfold increase in the capital-labor ratio. Living standards steadily rose, with more families moving from a lower-income status to middle-income security with increased household incomes. During a National Day Rally speech in 1987, Lee Kuan-Yew claimed that (based on the home ownership criterion) 80% of Singaporeans could now be considered to be members of the middle-class. However, much unlike the economic policies of Greece and the rest of Europe, Singapore followed a policy of individualising the social safety net. This led to a higher than average savings rate and a very sustainable economy in the long run. Without a burdensome welfare state or its likeliness, Singapore has developed a very self-reliant and skilled workforce well versed for a global economy.

Singapore's economic strategy produced real growth averaging 8.0% from 1960 to 1999. The economy picked up in 1999 after the regional financial crisis, with a growth rate of 5.4%, followed by 9.9% for 2000. However, the economic slowdown in the United States, Japan and the European Union, as well as the worldwide electronics slump, had reduced the estimated economic growth in 2001 to a negative 2.0%.

The economy expanded by 2.2% the following year, and by 1.1% in 2003 when Singapore was affected by the SARS outbreak. Subsequently, a major turnaround occurred in 2004 allowed it to make a significant recovery of 8.3% growth in Singapore, although the actual growth fell short of the target growth for the year more than half with only 2.5%. In 2005, economic growth was 6.4%; and in 2006, 7.9%.

As of 8 June 2013, Singapore's unemployment rate is around 1.9% and the country's economy has a lowered growth rate, with a rate of 1.8% on a quarter-by-quarter basis—compared to 14.8% in 2010.

State enterprise and investment

File:Singapore SOE percent of GDP.png

Singapore's State Owned Enterprises as a percent of GDP

The public sector is used both as an investor and as a catalyst for economic development and innovation. The government of Singapore has two sovereign wealth funds, Temasek Holdings and GIC Private Limited, which are used to manage the country's reserves. Initially the state's role was oriented more toward managing industries for economic development, but in recent decades the objectives of Singapore's sovereign wealth funds have shifted to a commercial basis.

Government-linked corporations play a substantial role in Singapore's domestic economy. As of November 2011, the top six Singapore-listed GLCs accounted for about 17 percent of total capitalization of the Singapore Exchange (SGX). These fully and partially state-owned enterprises operate on a commercial basis and are granted no competitive advantage over privately owned enterprises. State ownership is prominent in strategic sectors of the economy, including telecommunications, media, public transportation, defence, port, airport operations as well as banking, shipping, airline, infrastructure and real estate.

As of 2014, Temasek holds S$69 billion of assets in Singapore, accounting for 7% of the total capitalization of Singapore-listed companies.

Sectors

To maintain its competitive position despite rising wages, the government seeks to promote higher value-added activities in the manufacturing and services sectors. It also has opened, or is in the process of opening, the financial services, telecommunications, and power generation and retailing sectors up to foreign service providers and greater competition. The government has also attempted some measures including wage restraint measures and release of unused buildings in an effort to control rising commercial rents with the view to lowering the cost of doing business in Singapore when central business district office rents tripled in 2006. Template:Citation needed

Banking

Singapore is considered a global financial hub, with Singapore banks offering world-class corporate bank account facilities. In the 2017 Global Financial Centres Index, Singapore was ranked as having the third most competitive financial center in the world after London and New York City (and alongside cities such as Hong Kong, Tokyo, San Francisco, Chicago, Sydney, Boston, and Toronto). These include multiple currencies, internet banking, telephone banking, checking accounts, savings accounts, debit and credit cards, fixed term deposits and wealth management services. According to the Human Rights Watch, due to its role as a financial hub for the region, Singapore has continually been criticised for reportedly hosting bank accounts containing ill-gotten gains of corrupt leaders and their associates, including billions of dollars of Burma's state gas revenues hidden from national accounts. Singapore has attracted assets formerly held in Swiss banks for several reasons, including new taxes imposed on Swiss accounts and a weakening of Swiss bank secrecy. Credit Suisse, the second largest Swiss bank, moved its head of international private banking to Singapore in 2005. Template:Citation needed

Tax evasion is illegal in Singapore; however, according to an Organisation for Economic Co-operation and Development official, Singaporean authorities tend to cooperate with other countries' tax authorities only when evasion of Singaporean taxes is involved.

Biotechnology

Singapore is aggressively promoting and developing its biotechnology industry. Hundred of millions of dollars were invested into the sector to build up infrastructure, fund research and development and to recruit top international scientists to Singapore. Leading drug makers, such as GlaxoSmithKline (GSK), Pfizer and Merck & Co., have set up plants in Singapore. On 8 June 2006, GSK announced that it is investing another S$300 million to build another plant to produce paediatric vaccines, its first such facility in Asia. Pharmaceuticals now account for more than 8% of the country's manufacturing production.

Energy and infrastructure

Singapore is the pricing centre and leading oil trading hub in Asia. The oil industry makes up 5 per cent of Singapore's GDP, with Singapore being one of the top three export refining centres in the world. In 2007 it exported 68.1 million tonnes of oil. The oil industry has led to the promotion of the chemical industry as well as oil and gas equipment manufacturing. Singapore has 70 per cent of the world market for both jack-up rigs and for the conversion of Floating Production Storage Offloading units. It has 20 per cent of the world market for ship repair, and in 2008 the marine and offshore industry employed almost 70,000 workers.

Real estate

The Singaporean government also owns 90% of the country's land, as well as housing in which 80% of the population lives.

Trade, investment and aid

Template:Update

File:2006Singaporean exports.PNG

Singaporean exports in 2006

Singapore's total trade in 2014 amounted to S$982 billion. Despite its small size, Singapore is currently the fifteenth-largest trading partner of the United States. In 2014, Singapore's imports totalled $464 billion, and exports totalled $519 billion. Malaysia was Singapore's main import source, as well as its largest export market, absorbing 18% of Singapore's exports, with the United States close behind.

Malaysia is Singapore's biggest trading partner, with bilateral trade totalling roughly 91 billion US dollars in 2012, accounting for over a fifth of total trade within ASEAN. Singapore’s trade with major trading partners such as Malaysia, China, Indonesia and South Korea increased in 2012, while trade with EU27, United States, Hong Kong and Japan decreased in 2012. Since 2009, the value of exports exceeds imports for Singapore’s trade with China. In comparison, the value of imports exceeds exports for Singapore’s trade with the US since 2006.

Re-exports accounted for 43% of Singapore's total sales to other countries in 2000. Singapore's principal exports are petroleum products, food/beverages, chemicals, textile/garments, electronic components, telecommunication apparatus, and transport equipment. Singapore's main imports are aircraft, crude oil and petroleum products, electronic components, radio and television receivers/parts, motor vehicles, chemicals, food/beverages, iron/steel, and textile yarns/fabrics.

Trade in Singapore has benefited from the extensive network of trade agreements Singapore has passed. According to Healy Consultants, Singapore has free trade access to the entirety of the ASEAN network, with import duty reduced when dealing with Indonesia, Malaysia, the Philippines, Thailand, Brunei, Burma, Cambodia, Laos and Vietnam.

The Singapore Economic Development Board (EDB) continues to attract investment funds on a large-scale for the country despite the city's relatively high-cost operating environment. The US leads in foreign investment, accounting for 40% of new commitments to the manufacturing sector in 2000. As of 1999, cumulative investment for manufacturing and services by American companies in Singapore reached approximately $20 billion (total assets). The bulk of US investment is in electronics manufacturing, oil refining and storage, and the chemical industry. More than 1,500 US firms operate in Singapore.

Singapore's largely corruption-free government, skilled workforce, and advanced and efficient infrastructure have attracted investments from more than 3,000 multinational corporations (MNCs) from the United States, Japan, and Europe. Foreign firms are found in almost all sectors of the economy. MNCs account for more than two-thirds of manufacturing output and direct export sales, although certain services sectors remain dominated by government-linked corporations.

The government also has encouraged firms to invest outside Singapore, with the country's total direct investments abroad reaching $39 billion by the end of 1998. The People's Republic of China was the top destination, accounting for 14% of total overseas investments, followed by Malaysia (10%), Hong Kong (8.9%), Indonesia (8.0%) and US (4.0%). The rapidly growing economy of India, especially the high technology sector, is becoming an expanding source of foreign investment for Singapore. The United States provides no bilateral aid to Singapore, but the US appears keen to improve bilateral trade and signed the US-Singapore Free Trade Agreement. Singapore corporate tax is 17 per cent.Template:Citation needed

Year	Total trade	Imports	Exports	% Change
2000	$273	$135	$138	21%
2001				−9.4%
2002	$432			1.5%
2003	$516	$237	$279	9.6%
2004	$629	$293	$336	21.9%
2005	$716	$333	$383	14%
2006	$810	$379	$431	13.2%
2014	$983	$464	$519	21.3% change from 2006 to 2014

All figures in billions of Singapore dollars.

International trade agreements

Economy	Agreement	Abbreviation	Concluded	Signed	Effective	Legal text
Australia	Comprehensive Strategic Partnership	CSP	6 May 2016	2015
New Zealand	Agreement between New Zealand and Singapore on a Closer Economic Partnership	ANZSCEP	18 August 2000	14 November 2000	1 January 2001	[1]
European Free Trade Association	Agreement between the EFTA States and Singapore	EFTA-Singapore FTA	11 April 2002	26 June 2002	1 January 2003	[2]
Japan	Agreement between Japan and the Republic of Singapore for a New-Age Economic Partnership	JSEPA	October 2001	13 January		[3]
United States	United States-Singapore Free Trade Agreement	USSFTA	Template:Nowrap	6 May 2003	Template:Nowrap	[4]
Jordan	Singapore Jordan Free Trade Agreement	SJFTA	29 April 2004	16 May 2004		[5]
Brunei	Trans-Pacific Strategic Economic Partnership Agreement	Trans-Pacific SEP		August 2005	1 January 2006	[6]
Chile				18 July 2005
New Zealand				18 July 2005
India	India – Singapore Comprehensive Economic Cooperation Agreement	India-Singapore CECA	November 2004	29 June 2005	1 August 2005	[7]
Korea	Korea-Singapore Free Trade Agreement	KSFTA	28 November 2004	4 August 2005	End 2005	[8]
Peru	Peru-Singapore Free Trade Agreement	PesFTA	September 2007	29 May 2008	Early 2009
Sri Lanka	Sri Lanka-Singapore Free Trade Agreement	Sri Lanka-Singapore FTA	2016	23 January 2018	Mid 2018

Singapore workforce

In 2000, Singapore had a workforce of about 2.2 million. The country has the largest proficiency of English language speakers in Asia, making it an attractive place for multinational corporations. The National Trades Union Congress (NTUC), the sole trade union federation which has a symbiotic relationship with the ruling party, comprises almost 99% of total organised labour. Government policy and pro-activity rather than labour legislation controls general labour and trade union matters.Template:Citation needed

The Employment Act offers little protection to white-collar workers due to an income threshold. The Industrial Arbitration Court handles labour-management disputes that cannot be resolved informally through the Ministry of Manpower. The Singapore Government has stressed the importance of co-operation between unions, management and government (tripartism), as well as the early resolution of disputes. There has been only one strike in the past 15 years.

Singapore has enjoyed virtually full employment for long periods of time. Amid an economic slump, the unemployment rate rose to 4.0% by the end of 2001, from 2.4% early in the year. Unemployment has since declined and as of 2012 the unemployment rate stands at 1.9%.

While the Singapore government has taken a stance against minimum wage and unemployment benefit schemes, in 2007 the government introduced a Workfare Income Supplement (WIS) scheme to supplement wages of low-skilled workers. In order to support employers in hiring older Singaporean workers, Special Employment Credit (SEC) was introduced in 2011. It was first enhanced in 2012 to provide employers with support in hiring older Singaporean workers and Persons with Disabilities (PWDs). It helped the employers to cope with costs associated with the increase in Central Provident Fund (CPF) contribution rates for older workers. The 5 year SEC scheme was further extended to additional 3 years, up to 2019 to encourage employers to voluntarily re-employ older workers aged 65 and above.

The Singapore Government and the NTUC have tried a range of programs to increase lagging productivity and boost the labour force participation rates of women and older workers. However, labour shortages persist in the service sector and in many low-skilled positions in the construction and electronics industries. Foreign workers help make up this shortfall. In 2000, there were about 600,000 foreign workers in Singapore, constituting 27% of the total work force. As a result, wages are relatively suppressed or do not rise for all workers. To have some controls, the government imposes a foreign worker levy payable by employers for low end workers like domestic help and construction workers. In 2012, the Ministry of Trade and Industry (MTI) reported that Singapore should continue to fine-tune the calibration of its inflow of foreigners as the country continues to face an ageing population and a shrinking workforce. Singapore Parliament accepted the recommendations by its Economic Strategies Committee (ESC) for the optimal ratio of the level of immigration and foreign manpower for both high and low skilled workers. The Government recognises that the current overall foreign workforce should complement the local resident workforce and not replace the Singaporean Core concept, and helps companies greatly as they raise productivity through business restructuring and workforce retraining; raise resident labour force participation rate.

Poverty and Wealth Inequality

Singapore is one of the world’s wealthiest countries per capita, but its Gini coefficient (a standardized measure of inequality) is unusually high among developed countries. Singapore is also unusual in spending comparatively little on social programs, although subsidized public housing is nearly universally enjoyed among citizens.

The government has not set an official poverty line, and official poverty-related statistics are limited. Despite the absence of official statistics, there is ample anecdotal and indirect statistical evidence that poverty is a serious problem in Singapore. Limited official statistics on the number of households receiving ComCare assistance are available. (ComCare provides a small amount of income support to profoundly poor citizen households in Singapore.)

Over 80% of Singaporeans live in government-subsidized Housing Development Board (HDB) public housing. HDB units are mostly sold as 99 year leaseholds to citizens, but a small percentage of low income citizens live in non-owned HDB units rent free. In late 2015 the Ministry of Health introduced compulsory MediShield Life hospitalization insurance, providing basic, limited coverage for medical care in Singapore’s public restructured hospitals. MediShield Life premiums are waived for the lowest income citizens. Singapore has no unemployment insurance. Public transport is well supported, and fares are low or, in some cases, zero.

Starting especially in the 2000s, the Monetary Authority of Singapore (MAS) introduced progressively tighter limits on credit and debt, to try to prevent Singaporeans from becoming too deeply indebted. For example, banks are not legally permitted to extend any credit card debt limit in excess of S$500 (total) to applicants with less than S$30,000 of annual income, and credit limits also apply above that threshold. HDB units, and citizens’ (and Permanent Residents’) savings in the Central Provident Fund (CPF), are generally well protected against creditors and court judgments, to help prevent utter destitution. As another example, the government requires citizens and PRs who wish to enter either of its two casinos (at Sentosa and Marina Bay) to pay steep entrance fees, to try to curb problem gambling within the resident population. Despite these measures, some Singaporeans end up in poverty due to overwhelming debt and/or gambling. Illegal loan sharking also remains a problem in Singapore.

Foreign workers, foreign dependents, foreign students, Permanent Residents, and even visiting tourists can also end up in poverty. In practice, and as with most countries, Singapore repatriates impoverished foreigners back to their home countries. Employers must bear repatriation costs in many cases.

Public finance

Government spending in Singapore has risen since the start of the global financial crisis, from around 15% of GDP in 2008 to 17% in 2012. The government's total expenditure as a percentage of GDP ranks among the lowest internationally and allows for a competitive tax regime. Singapore is required under its constitution to keep a balanced budget over each term of government. Singapore government debt is issued for investment purposes, not to fund expenditure.

Personal income taxes in Singapore range from 0% to 20% for incomes above S$320,000. There are no capital gains or inheritance taxes in Singapore. Singapore's corporate tax rate is 17% with exemptions and incentives for smaller businesses. Singapore has a single-tier corporate income tax system, which means there is no double-taxation for shareholders.

Singapore introduced Goods and Services Tax (GST) with an initial rate of 3% on 1 April 1994, increasing government's revenue by S$1.6 billion (US$1b, €800m) and establishing government finances. The taxable GST was increased to 4% in 2003, to 5% in 2004, and to 7% in 2007.

The Singapore government owns two investment companies, GIC Private Limited and Temasek Holdings, which manage Singapore's reserves. Both operate as commercial investment holding companies independently of the Singapore government, but Prime Minister Lee Hsien Loong and his wife Ho Ching serve as chairman and CEO of these corporations respectively. While GIC invests abroad, Temasek holds 31% of its portfolio in Singapore, holding majority stakes in several of the nation's largest companies, such as Singapore Airlines, SingTel, ST Engineering and MediaCorp. As of 2014, Temasek holds S$69 billion of assets in Singapore, accounting for 7% of the total capitalisation of Singapore-listed companies.

In April 2013, the country was recognisedTemplate:By whom as an increasingly popular tax haven for the wealthy due to the low tax rate on personal income, a full tax exemption on income that is generated outside of Singapore and 69 double taxation treaties that can minimise both withholding tax and capital gains tax. Australian millionaire retailer Brett Blundy, with an estimated personal wealth worth AU$835 million, and multi-billionaire Facebook co-founder Eduardo Saverin are two examples of wealthy individuals who have settled in Singapore (Blundy in 2013 and Saverin in 2012). Additionally, Australian mining magnate Gina Rinehart owns property in Singapore and American investor Jim Rogers moved to Singapore in 2007—Rogers has identified the 21st century as an era in which Asia will dominate and wishes for his two daughters to learn Mandarin as a key outcome of the relocation. Chinese Media TV celebrities Jet Li and Gong Li have also taken up naturalised Singapore citizenship.

Monetary policy

The Monetary Authority of Singapore is Singapore's central bank and financial regulatory authority. It administers the various statutes pertaining to money, banking, insurance, securities and the financial sector in general, as well as currency issuance. The MAS has been given powers to act as a banker to and financial agent of the Government. It has also been entrusted to promote monetary stability, and credit and exchange policies conducive to the growth of the economy.

Unlike many other central banks such as Federal Reserve System or Bank of England, MAS does not regulate the monetary system via interest rates to influence the liquidity in the system. Instead, it chooses to do it via the foreign exchange mechanism. It does so by intervening in the SGD market.

Mergers and Acquisitions

16,156 M&A deals have been conducted in Singapore so far which cumulated to a total value of 850. bil. USD. Since 1985 there has been a constant upward trend, only shortly disrupted in 2002 and 2009. The most active year in terms of numbers (926) and value (78. bil. USD) has been 2017, so there is currently an all time high. In general inbound and outbound deals in Singapore are nearly equaly distributed.

Here is a list of the top 10 deals with Singaporean participation inbound or outbound:

Date Announced	Acquiror Name	Acquiror Mid Industry	Acquiror Nation	Target Name	Target Mid Industry	Target Nation	Value of Transaction ($mil)
02/01/2008	Shining Prospect Pte Ltd	Other Financials	Singapore	Rio Tinto PLC	Metals & Mining	United Kingdom	14,284.17
07/09/2015	Petrol Complex Pte Ltd	Oil & Gas	Singapore	Essar Oil Ltd	Oil & Gas	India	12,907.25
07/14/2017	Nesta Investment Holdings Ltd	Other Financials	China	Global Logistic Properties Ltd	Non Residential	Singapore	11,553.58
12/10/2016	QHG Shares Pte Ltd	Other Financials	Singapore	Rosneft Oil Co	Oil & Gas	Russian Fed	10,776.55
12/10/2007	Government of Singapore Invest	Alternative Financial Investments	Singapore	UBS AG	Banks	Switzerland	9,760.42
03/26/2001	Singapore Telecommunications	Wireless	Singapore	Cable & Wireless Optus Lt	Telecommunications Services	Australia	8,491.12
12/01/2014	Investor Group	Other Financials	Singapore	IndCor Properties Inc	REITs	United States	8,100.00
03/30/2007	Investor Group	Other Financials	Singapore	Alinta Ltd	Oil & Gas	Australia	7,500.98
09/13/2012	TCC Assets Ltd	Other Financials	British Virgin	Fraser & Neave Ltd	Food and Beverage	Singapore	6,896.48
01/15/2008	Government of Singapore Invest	Alternative Financial Investments	Singapore	Citigroup Inc	Banks	United States	6,880.00

Facts & figures

Percentage of economic growth: 1.7% (2016)

Industrial production growth rate: 1% (2016 est.)

Elicity – production by source:
fossil fuel: 95.3%
hydro: 0%
nuclear: 0%
other: 3.9% (2014 est.)

Electricity – consumption: 47.5 TWh (2016)

Electricity – exports: 0 kWh (2007)

Electricity – imports: 0 kWh (2007)

Agriculture – products: rubber, copra, fruit, vegetables; poultry, eggs, fish, orchids, ornamental fish

Currency: 1 Singapore dollar (S$ or SGD) = 100 cents

Exchange rates:

Year	Singapore Dollars per US$1
1981	2.0530
1985	2.1213
1990	1.7275
1995	1.4148
2000	1.7361
2005	1.6738
2011	1.2573
2012	1.2498
2013	1.2513
2014	1.2671
2015	1.3748
2016	1.379

International rankings

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See also

Template:Portal

• Four Asian Tigers
• 5 C's of Singapore
• Biopolis
• Dual economy
• Bamboo network
• Immigrant workers in Singapore
• Singapore Workplace Safety and Health Conference

External links

Template:Library resources box Template:Commons category

• Statistics Singapore
• Singapore Department of Statistics
• Monetary Authority of Singapore