Singapore economic growth and development

Singapore economic growth in the period 1960-1980 has been accompanied by a structural transformation of the economy.

There has been a substantial increase in the proportion of manufacture, transport and communications and financial services and business in GDP at the expense of Commerce (in particular entrepôt trade).

Resources were reallocated from the tertiary and primary sector in the secondary sector.
Diversification of the economic base has changed the dependency of the State of the city in its own manufacturing and its role as a business and communication services and transport centre and international financial - sector.

Increased sophistication of its economy was achieved through constant updating and restructuring.

Structural change of the economy is also reflected in the growing expenditure on gross domestic product, expenditure-saving gross national increased too. Accounted for a growing percentage of the total investment.

The important part that international companies that play in the economy of Singapore marks another important change.

Manufacturing, until 1965, growth was caused by the growth in own domestic market and supply incentives created by the Government.

The acceleration of the spectacular growth in the period 1966-1973, reflects the change to a greater orientation towards exports of local enterprises and entry weighing of MNEs with support in global markets.

In the 1970s industrial pattern became ever more diversified.

Manufacturing activity tends to be a character in "enclave" due to its high degree of
import, export and foreign investment unit.

Mainly in the manufacturing sector expansion had stimulated the growth of the financial and the business sector in the 1960s. Growth in the 1970s was also the result of the Government's policy to develop Singapore in an international financial centre.

The volume increasing loans and deposits, the dramatic expansion of Asian dollar market and the Asian bond market illustrate the development of the financial centre of Singapore.

The dual objective of encouraging the establishment of foreign banks and financial institutions are: increase banking and financial knowledge and to induce foreign entrepreneurs to invest in Singapore.

The sector of transport and communication, having experienced a period of decay and stagnation in the 1960s showed a considerable increase in percentage of GDP in the 1970s.

Singapore is one of the busiest ports in the world, who benefit from the large current trade flows through the waterways of Asia.

Singapore remains an important entrepôt for their neighbours.

The strategy of development of the 1970s had captured idea Singapore as a center of transportation and communications development.

The Commerce sector has been relatively large in Singapore importance. The nature of trade is changing. As a whole entrepôt trade changes the handling and processing of primary products to finished, more sophisticated products cheap high volume trade in lower volume of higher price.

In the 1970s, Singapore has emerged as a major manufacturing site. Singapore trade deficit reflects its characteristic dependence on imports for all consumer and industrial needs. On the import side, as well as export have been side changes composition by section commodity and distribution in the different countries.

While there is an imbalance between imports and exports overall balance payment shows a continuing surplus. The trade deficit of Singapore were offset by: gains network service, the influx of foreign, foreign investment flows in the short term and long term and very large balance element.

By Raymond Le Blanc. For more information about economic growth and development in Singapore during the period 1960-1980, visit http://cranendonk.com/singapore.htm