Singapore

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SINGAPORE

ECONOMY The port of Singapore, one of the world's five busiest, with the skyline of Singapore in the background Singapore has a highly developed market-based economy, based historically on extended entrepôt trade. Along with Hong Kong, South Korea and Republic of China (Taiwan), Singapore is one of the Four Asian Tigers. The economy depends heavily on exports and refining imported goods, especially in manufacturing, which constituted 27.2% of Singapore's GDP in 2010 and includes significant electronics, petroleum refining, chemicals, mechanical engineering and biomedical sciences sectors. In 2006 Singapore produced about 10% of the world's foundry wafer output. The country is the world's fourth leading financial centre. Singapore has one of the busiest ports in the world and is the world's fourth largest foreign-exchange trading centre after London, New York and Tokyo. The World Bank ranks Singapore as the world's top logistics hub. Before independence in 1965, Singapore had a GDP per capita of $511, then the third highest in East Asia. After independence, foreign direct investment and a state-led drive for industrialisation based on plans by Goh Keng Swee and Albert Winsemius created a modern economy. As a result of global recession and a slump in the technology sector, the country's GDP contracted by 2.2% in 2001. The Economic Review Committee was set up in December 2001 and recommended several policy changes to revitalise the economy. Singapore has since recovered, largely due to improvements in the world

economy; the economy grew by 8.3% in 2004, 6.4% in 2005, and 7.9% in 2006. After a contraction of 0.8% in 2009, the economy recovered in 2010 with a GDP growth of 14.5%. Singapore possesses the world's tenth largest foreign reserves. Singapore's external trade is of higher value than its GDP, making trade one of the most vital components of the economy. Over ten free trade agreements have been signed with other countries and regions. Singapore's economy was ranked the world's most open in 2009, competitive and innovative. Singapore is rated the most business-friendly economy in the world. The currency of Singapore is the Singapore dollar, issued by the Monetary Authority of Singapore. It is interchangeable with theBrunei dollar. Most work in Singapore is in the service sector, which employed around 2,151,400 people out of 3,102,500 jobs in December 2010. Around 64.2% of jobs were held by locals. The percentage of unemployed economically active people above age 15 is about 2%. Poverty levels are low compared to other countries in the region. The government provides cheap housing and financial assistance to poorer people. Singapore has the world's highest percentage of millionaire households, with 15.5 percent of all households owning at least one million US dollars. Tourism forms a large part of the economy, and 10.2 million tourists visited the country in 2007. To attract more tourists, in 2005 the government legalised gambling and allowed two casino resorts (called Integrated Resorts) to be developed. Singapore is promoting itself as a medical tourism hub: about 200,000 foreigners seek medical care there each year, and Singapore medical services aim to serve one million foreign patients annually by 2012 and generate USD 3 billion in revenue.

FOREIGN RELATIONS Then Senior Minister Lee Kuan Yew and Ambassador to the U.S. Chan Heng Cheemeet with Secretary of Defense William S. Cohen during Lee's visit in 2000 Singapore's foreign policy is directed to maintaining a secure environment in Southeast Asia as well as the territories that surround it. An underlying principle is regional political and economic stability in the region. It has diplomatic relations with 175 other Sovereign states. As one of the five founding members of the Association of South East Asian Nations (ASEAN), the country is a strong supporter of the ASEAN Free Trade Area and the ASEAN Investment Area, because Singapore's economic growth is closely linked with the economic progress of the region as a whole. Former Prime Minister Goh Chok Tong proposed the formation of an ASEAN Economic Community, a step beyond the current AFTA bringing it closer to a common market. This idea was agreed to in 2007 for implementation in 2015. Other regional organisations are also important to Singapore, and it is the host of the APEC Secretariat. Singapore also maintains membership in other regional organisations, such asAsia-Europe Meeting, the Forum for East

Asia-Latin American Cooperation, and the East Asia Summit. It is also a member of the Non-Aligned Movement and theCommonwealth. Bilateral relations with other ASEAN members are generally strong, however disagreements have arisen and relationships with neighbouring Malaysia and Indonesia have historically been difficult. Malaysia has often come into conflict with Singapore over the delivery of fresh water to Singapore, and the access of Malaysian airspace to the Singapore Armed Forces, among others. Border issues exist with both Malaysia and Indonesia, and both have banned the sale of marine sand to Singapore over disputes about Singapore's land reclamation. Some previous disputes have been solved by the International Court of Justice. Piracy in the Malacca Strait has been a cause of concern for all three countries. Close economic ties exist with Brunei, and the two share a pegged currency value. Singapore and the United States share a long-standing and strong relationship, particularly in defence, the economy, health and education. The USA is Singapore's third largest trading partner in 2010 after the European Union and the People's Republic of China. The government of Singapore believes that regional security, and by extension, Singapore's security will be affected if the United States loses its resolve in Iraq. Singapore has pushed regional counter-terrorism initiatives, with a strong resolve to deal with terrorists inside its borders. To this end it has given support to the US-led coalition to fight terrorism, with bilateral cooperation in counter-terrorism and counter-proliferation initiatives, and joint military exercises. Relations with the United States have expanded in other areas, and the two countries share a free trade agreement and take part in joint policy dialogues. Relations with the People's Republic of China were established in the 1970s, and since then the two countries have enjoyed a strong relationship, being major players in strengthening the ASEAN-China relationship.

MILITARY The Singaporean military is the most advanced in Southeast Asia. It is divided between the Army, Navy, and Air Force. It is seen as the guarantor of the country's independence. The nation's philosophy of defence is one of diplomacy and deterrence. This principle translates into the culture, involving all citizens in the country's defence. The government spends 4.9% of its GDP on the military. At the time of independence, Singapore had two infantry regiments, which had been commanded by British officers. It was considered too small to provide effective security to the new country and so the development of the military became a priority. Tactics such as jungle warfare were learned to allow the army to fight outside Singapore's borders, and the army obtained equipment such as tanks before its neighbours, often from Israel, and became a highly effective force.

The SAF is being developed to respond to a wide range of issues, in both conventional and unconventional warfare. The Defence Science and Technology Agency is responsible for procuring resources for the military.[85] The geographic restrictions of Singapore mean that the SAF must plan to fully repulse an attack, as they can not fall back and re-group. The small population has also affected the way the SAF has been designed, with a small active force but a large number of reserves. Singapore has a draft which extends to all able-bodied males at the age of 18, except to those who have a criminal record, or can prove that their loss would bring hardships to their families. In addition, males who have yet to complete pre-university education or are awarded the Public Service Commission scholarship can opt to defer their draft. Though not required to perform military service, the number of women in the Singapore Armed Forces has been increasing, with women allowed since 1989 to fill military vocations formerly reserved for men. Before induction into a specific branch of the armed forces, recruits undergo at least 9 weeks of basic military training. Because of the scarcity of open land on the main island, training involving activities such as live firing and amphibious landings is often carried out on smaller islands, typically barred to civilian access. This also avoids risk to the main island and the city. However, large-scale drills are considered too dangerous to be performed in the area, and since 1975 have been performed in Taiwan, although training is held in about a dozen other countries. Military exercises are generally held with foreign forces once or twice per week. The SAF has sent forces to assist in operations outside the country in areas such as Iraq and Afghanistan, in both military and non-military roles. Regionally it has helped stabilise East Timor and provided aid to Aceh in Indonesia following the 2004 Indian Ocean earthquake and tsunami. Singapore is part of the Five Power Defence Arrangements, a military alliance withAustralia, Malaysia, New Zealand, and the United Kingdom.

TRANSPORT The Port of Singapore with Sentosa island in the background Singapore is a major international transportation hub in Asia, positioned on many sea and air trade routes. The Port of Singapore, managed by port operators PSA International and Jurong Port, was the world's second busiest port in 2005 in terms of shipping tonnage handled, at 1.15 billion gross tons, and in terms of containerised traffic, at 23.2 million twenty-foot equivalent units (TEUs). It is also the world's second busiest in terms of cargo tonnage, coming behind Shanghai with 423 million tons handled. In addition, the port is the world's busiest for transshipment traffic and the world's biggest ship refuelling centre.

Singapore is an aviation hub for the Southeast Asian region and a stopover on the Kangaroo route between Sydney and London. There are 8 total airports in the country, and Singapore Changi Airport hosts a network of 80 airlines connecting Singapore to 200 cities in 68 countries. It has been rated one of the best international airports by international travel magazines, including being rated as the world's best airport for the first time in 2006 by Skytrax. The national airline is Singapore Airlines.[165] The island has a road system covering 3,356 kilometres (2,085 mi) which includes 161 kilometres (100 mi) of expressways. The public road system is served by the many bus services and a number of licensed taxi-operating companies, and thousands of people use these services everyday. Since 1987, the heavy rail passenger Mass Rapid Transit (MRT) metro system has been in operation.

GOVERNMENT AND POLITICS Singapore's Parliament House. Singapore is a parliamentary republic with a Westminster system of unicameral parliamentary government representing constituencies. Its constitution establishes representative democracy as its political system. Freedom House ranks Singapore as "partly free" in its Freedom in the World report, and The Economist ranks Singapore as a "hybrid regime", the third rank out of four, in its "Democracy Index". Singapore is consistently rated one of the least corrupt countries in the world by Transparency International. Executive power rests with the Cabinet, headed by the Prime Minister, and the President. The president is elected through popular vote, and has some veto powers for a few key decisions such as the use of the national reserves and the appointment of judges, but otherwise occupies a ceremonial post. The Parliament serves as the legislative branch of government. Members of Parliament (MPs) consist of elected, non-constituency and nominated members. Elected MPs are voted into parliament on a "firstpast-the-post" (plurality) basis and represent either single-member or group-representation constituencies. The People's Action Party has won control of Parliament with large majorities in every election since self-governance was secured in 1959. However, in the most recent parliamentary elections in 2011, the opposition, led by the Workers' Party, made significant gains and increased its representation in the House to 6 elected MPs. The legal system of Singapore is based on English common law, albeit with substantial local differences. Trial by jury was entirely abolished in 1970 leaving judicial assessment performed wholly by judgeship. Singapore has penalties that include judicial corporal punishment in the form of caning for rape, rioting, vandalism, and some immigration offences. There is a mandatory death penalty for murder, and for certain drug-trafficking and firearms offences. Amnesty International has said that some

legal provisions conflict with the right to be presumed innocent until proven guilty, and that Singapore has "possibly the highest execution rate in the world relative to its population". The government has disputed Amnesty's claims. In a 2008 survey, international business executives believed Singapore, along with Hong Kong, had the best judicial system in Asia.

WATER SUPPLY AND SANITATION IN SINGAPORE Water supply and sanitation in Singapore is characterized by a number of achievements in the challenging environment of a densely populated island. Access to water is universal, affordable, efficient and of high quality. Innovative integrated water management approaches such as the reuse of reclaimed water, the establishment of protected areas in urban rainwater catchments and the use of estuaries as freshwater reservoirs have been introduced along with seawater desalination in order to reduce the country's dependence on imported water. In 2007 Singapore's water and sanitation utility, the Public Utilities Board, received the Stockholm Industry Water Award for its holistic approach to water resources management.

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