This is an accepted version of this page
 Skyline of Singapore'sDowntown Core | |
| Currency | Singapore dollar (SGD/S$) |
|---|---|
| 1 April – 31 March | |
Trade organisations | WTO,APEC,CPTPP,IOR-ARC,RCEP,ASEAN and others |
Country group | |
| Statistics | |
| Population |  6,040,000 (2024)[3] |
| GDP | |
| GDP rank | |
GDP growth | |
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
| 0.9% (Apr 2025)[6] | |
Population belowpoverty line | N/A |
 45.9medium (2017)[5][a] | |
| |
| 84 out of 100 points (2024,3rd) | |
Labour force | |
Labour force by occupation |
|
| Unemployment |
|
Average gross salary | S$8,480 / US$6,678 monthly[10] (2025) |
| S$7,310 / US$5,756 monthly[11] (2024) | |
Main industries |
|
| External | |
| Exports | US$942 billion (2022)[12][13] |
Export goods |
|
Main export partners | |
| Imports | US$870 billion (2022)[13] |
Import goods | |
Main import partners |
|
FDI stock | |
| $60.99 billion (2017 est.)[5] | |
Grossexternal debt |  $168.3 billion (31 December 2017 est.)[b][5] |
| S$738.811 billion (Q1 2015)[16] | |
| Public finances | |
| 167.8% of GDP (2022 est.)[c][5] | |
| US$384.587 billion (August 2024)[17] | |
| Revenues | S$69.45 billion (2017 est.)[18] |
| Expenses | S$75.07 billion (2017 est.)[18] |
| Economic aid | N/A |
All values, unless otherwise stated, are inUS dollars. | |
Theeconomy of Singapore is ahighly developedmixedmarket economy withdirigiste characteristics.[21][22][23][24]Singapore's economy has been consistently ranked as the most open, competitive and pro-business in the world.[25] It is also the3rd least corrupt in the world.[26][27] Singapore has lowtax-rates[28] and thehighest per-capita GDP in the world in terms of purchasing power parity (PPP). TheAsia-Pacific Economic Cooperation (APEC) is headquartered in Singapore.
Alongside thebusiness-friendly reputation for global and localprivately held companies andpublic companies, various nationalstate-owned enterprises play a substantial role in Singapore's economy. Thesovereign wealth fundTemasek Holdings holds majority stakes in several of the nation's largestbellwether companies, such asSingapore Airlines,Singtel,ST Engineering andMediacorp. With regards toforeign direct investment (FDI), the Singaporean economy is a majorFDI outflow-financier in the world. In addition, throughout its history, Singapore has benefited from thelarge inward flows of FDI from globalinvestors,financial institutions andmultinational corporations (MNCs) due to its highly attractive investment climate along with a stable and conducive political environment throughout its modern years.[29]
Singapore relies on an extended concept of intermediary trade toentrepôt trade,[30][31] by purchasing raw goods and refining them for re-export in order to sustain its high levels ofexport-oriented industrialization, such as in thewafer-fabrication industry and inoil refining. Singapore has a strategic port which makes it more competitive than many of its neighbours in carrying out such entrepôt activities. Singapore'strade-to-GDP ratio is among the highest in the world, as of 2020 the ratio was 320%.[32][33] ThePort of Singapore is thesecond-busiest in the world by cargo tonnage and is the busiest transshipment port in the world.[34]
Singapore is also a regional, continental and global hub for the management and operations of variousMNCs, because of its strategic location in close proximity with otherAsia-Pacific markets, along with its advanced connectivity andinfrastructure (airline hub andmaritime port with a diverse array of destinations, Gigabitfiber-optic communications, efficientroad transport andpublic transport) and its immigration policies in welcomingglobal talent. In addition, Singapore is a popular internationaltourist destination for various types oftourism (Business tourism,MICE (Meetings, Incentives, Conferences, Exhibitions) tourism,Medical tourism,Urban tourism).
Singapore's economy is often referred to as a "miracle" due to its rapid transformation from a developing country to a developed, high-income economy in a relatively short period of time. This transformation took place in the second half of the 20th century under the leadership of Prime Minister Lee Kuan Yew and his government.[35] One of the key factors contributing to Singapore's economic miracle was its strategic location, which made it an ideal hub for international trade and commerce.[36]
The country's main exports includeelectronics,chemicals andservices. Singapore is the regional hub forwealth management.[37][38][39] Water isscarce in Singapore and a sizeable percentage of water isimported from Malaysia,[40] therefore it is defined as a precious resource.
Small and medium-sized enterprises (SMEs) are the backbone of Singapore's economic landscape. In 2022 SMEs contributed 48% (S$284 bil) of Singapore's total enterprise nominal value-added and employed 71% of Singapore's total workforce of 3.63 million.[41]
Singapore has limited arable land, meaning that Singapore is heavily reliant onagrotechnology parks (particularly verticalhydroponic farms) foragricultural production.[42][43] As a result, Singapore imports 90% of its food supply and has a wide variety of supplier countries in order to achieve itsfood security; Singapore is ranked as among the most food secure in the world.[44][45]
Apart from its strategic location at the cross-roads oftrade betweenthe East andthe West, Singapore has little to nonatural resources, hencehuman resources is a pivotal issue for the health of the Singaporean economy; the services and manufacturing sectors of the economy are heavily reliant on a highly-educated and highly-skilled 'Professional,Managerial,Executive andTechnical' (PMET)workforce composed of residents andexpatriates.[46][47][48] The economy of Singapore ranked 2nd overall in the Scientific American Biotechnology ranking in 2014,[49] with the featuring ofBiopolis.
To preserve its international standing and to further its economicprosperity in the 21st century, Singapore has taken measures to promoteinnovation, to encourageentrepreneurship and toretrain itsworkforce.[50] TheMinistry of Manpower (MoM) has the prime responsibility for setting, adjusting, and enforcingimmigration rules forforeign workers, in order to achieve the dual mandate of maximum employment of the local resident population and maximum economic growth for the nation. Approximately 29% of the total population within Singapore are non-resident foreigners, including 255,800 foreigndomestic workers (FDWs) who operate in Singapore.[51]
The following table shows the main economic indicators in 1980–2021 (with IMF staff estimates in 2022–2027). Inflation below 5% is in green.[52]
| Year | GDP (in Bil. US$PPP) | GDP per capita (in US$ PPP) | GDP (in Bil. US$nominal) | GDP per capita (in US$ nominal) | GDP growth (real) | Inflation rate (in Percent) | Unemployment (in Percent) | Government debt (in % of GDP) |
|---|---|---|---|---|---|---|---|---|
| 1980 | 22.9 | 9,479.4 | 12.1 | 5,005.0 | 10.1% | 8.5% | 5.8% | n/a |
| 1981 | 27.8 | 10,958.8 | 14.4 | 5,672.1 | 10.8% | 8.2% | 5.9% | n/a |
| 1982 | 31.6 | 11,927.3 | 15.9 | 6,000.0 | 7.1% | 3.9% | 6.3% | n/a |
| 1983 | 35.6 | 13,281.0 | 18.0 | 6,717.8 | 8.6% | 1.0% |  5.6% | n/a |
| 1984 | 40.1 | 14,689.9 | 19.6 | 7,160.3 | 8.8% | 2.6% | 6.1% | n/a |
| 1985 | 41.1 | 15,039.4 |  18.6 | 6,788.4 | -0.6% | 0.5% | 4.6% | n/a |
| 1986 | 42.5 | 15,563.0 | 18.8 | 6,870.8 | 1.3% | -1.4% | 2.0% | n/a |
| 1987 | 48.3 | 17,406.2 | 21.6 | 7,794.7 | 10.8% | 0.5% | 3.9% | n/a |
| 1988 | 55.6 | 19,547.3 | 26.6 | 9,329.0 | 11.3% | 1.5% | 2.6% | n/a |
| 1989 | 63.7 | 21,730.1 | 31.4 | 10,725.7 | 10.2% | 2.3% | 1.8% | n/a |
| 1990 | 72.6 | 23,812.9 | 38.9 | 12,763.3 | 9.8% | 3.5% | 1.8% | 73.5% |
| 1991 | 80.0 | 25,528.0 | 45.5 | 14,502.0 | 6.7% | 3.4% | 1.8% | 76.4% |
| 1992 | 87.3 | 27,019.3 | 52.1 | 16,136.2 | 6.6% | 2.2% | 1.8% | 79.0% |
| 1993 | 99.6 | 30,059.3 | 60.6 | 18,290.1 | 11.5% | 2.3% | 1.7% | 71.2% |
| 1994 | 113.0 | 33,054.6 | 73.7 | 21,552.4 | 11.1% | 3.1% | 1.7% | 70.7% |
| 1995 | 123.7 | 35,087.0 | 87.8 | 24,914.9 | 7.2% | 1.7% | 1.8% | 69.8% |
| 1996 | 135.3 | 36,869.6 | 96.3 | 26,232.9 | 7.5% | 1.4% | 1.7% | 71.3% |
| 1997 | 149.1 | 39,283.1 | 100.1 | 26,375.9 | 8.3% | 2.0% | 1.4% | 70.8% |
| 1998 | 147.5 | 37,557.0 | 85.7 | 21,829.3 | -2.2% | -0.3% | 2.5% | 84.6% |
| 1999 | 158.1 | 39,943.7 | 86.3 | 21,796.6 | 5.7% | 0.0% | 2.8% | 85.3% |
| 2000 | 176.3 | 43,775.8 | 96.1 | 23,852.8 | 9.0% | 1.3% | 2.7% | 82.3% |
| 2001 | 178.4 | 43,104.2 | 89.8 | 21,699.7 | -1.1% | 1.0% | 2.7% | 94.5% |
| 2002 | 188.3 | 45,080.2 | 92.5 | 22,159.8 | 3.9% | -0.4% | 3.6% | 96.3% |
| 2003 | 200.7 | 48,774.7 | 97.6 | 23,730.4 | 4.5% | 0.5% | 4.0% | 99.1% |
| 2004 | 226.6 | 54,377.3 | 115.0 | 27,608.1 | 9.9% | 1.7% | 3.4% | 95.7% |
| 2005 | 250.9 | 58,815.0 | 127.8 | 29,961.3 | 7.4% | 0.5% | 3.1% | 92.7% |
| 2006 | 281.9 | 64,054.4 | 148.6 | 33,768.4 | 9.0% | 1.0% | 2.7% | 86.5% |
| 2007 | 315.7 | 68,793.8 | 180.9 | 39,432.9 | 9.0% | 2.1% | 2.1% | 87.8% |
| 2008 | 327.7 | 67,718.3 | 193.6 | 40,008.6 | 1.9% | 6.6% | 2.2% | 97.9% |
| 2009 | 330.2 | 66,212.2 | 194.2 | 38,926.8 | 0.1% | 0.6% | 3.0% | 101.7% |
| 2010 | 382.7 | 75,389.8 | 239.8 | 47,236.7 | 14.5% | 2.8% | 2.2% | 98.7% |
| 2011 | 415.0 | 80,052.4 | 279.4 | 53,891.5 | 6.2% | 5.2% | 2.0% | 103.1% |
| 2012 | 436.0 | 82,065.0 | 295.1 | 55,547.5 | 4.4% | 4.6% | 2.0% | 106.7% |
| 2013 | 448.1 | 83,001.8 | 307.6 | 56,967.4 | 4.8% | 2.4% | 1.9% | 98.2% |
| 2014 | 461.8 | 84,423.2 | 314.9 | 57,564.8 | 3.9% | 1.0% | 2.0% | 97.7% |
| 2015 | 481.4 | 86,974.7 | 308.0 | 55,645.6 | 3.0% | -0.5% | 1.9% | 102.2% |
| 2016 | 501.5 | 89,436.6 | 318.8 | 56,858.5 | 3.6% | -0.5% | 2.1% | 106.6% |
| 2017 | 534.9 | 95,310.3 | 343.2 | 61,149.6 | 4.7% | 0.6% | 2.2% | 107.7% |
| 2018 | 567.7 | 100,686.1 | 377.0 | 66,857.3 | 3.7% | 0.4% | 2.1% | 109.4% |
| 2019 | 584.2 | 102,431.4 | 375.5 | 65,833.2 | 1.1% | 0.6% | 2.3% | 128.2% |
| 2020 | 566.8 | 99,681.2 | 345.3 | 60,727.6 | -4.1% | -0.2% | 3.0% | 152.0% |
| 2021 | 635.3 | 116,486.3 | 397.0 | 72,794.9 | 7.6% | 2.3% | 2.7% | 159.9% |
| 2022 | 701.0 | 131,425.7 | 423.6 | 79,426.1 | 3.0% | 5.5% | 2.1% | 141.1% |
| 2023 | 742.3 | 140,280.1 | 447.2 | 84,500.4 | 2.3% | 3.0% | 2.1% | 140.0% |
| 2024 | 777.8 | 147,117.9 | 470.1 | 88,926.0 | 2.6% | 2.0% | 2.1% | 139.9% |
| 2025 | 811.9 | 152,667.0 | 491.2 | 92,363.0 | 2.5% | 1.5% | 2.1% | 140.6% |
| 2026 | 848.2 | 158,689.4 | 513.5 | 96,065.7 | 2.5% | 1.5% | 2.1% | 141.2% |
| 2027 | 886.1 | 164,987.2 | 536.8 | 99,935.1 | 2.5% | 1.5% | 2.1% | 141.8% |
In 1819,Stamford Raffles, at the timeLieutenant-Governor of Bencoolen, established a trading post in Singapore.[53] Raffles had been searching for a new settlement that could be used as an outpost of the British Empire. He left Calcutta and set out to explore much of South-East Asia. At the time, the Dutch Empire and British Empire were close economic rivals. Colonization enabled these empires to gain control of the vast resources of militarily weaker and economically less prosperousnations. Raffles was looking for a new settlement that could replace Malacca as a key economic advantage over the Dutch Empire. The former had been handed over to the Dutch under theTreaty of Vienna of 1815.[54] Raffles found Singapore to be a perfect location, sitting just of the edge of the Straits of Malacca, nowadays one of the most important shipping lanes in the world. As well, the territory had key economic resources which would benefit the British. There was abundant timber and fresh water, and a natural deep water harbor which would be beneficial for the British fleet. He arrived on an island at the mouth of the Singapore River, where there was a small Malay settlement. At the time accompanied by William Farquhar, Raffles met withTemenggong (essentially, Chief of Security, for the settlement)Abdul Rahman to negotiate the right to establish a trading post on the island, under the British Empire. The island was ruled nominally fromJohar on the peninsula byTengku (essentially, Prince)Rahman, Sultan of Johor, who was heavily influenced by the Dutch and theBugis. However, the Sultanate was weakened by factional division so that Temenggong Abdul Rahman and his officials were more loyal to Rahman's elder brother TengkuHussein (or Tengku Long) who was living in exile in "Riau" (likelythe Riau Archipelago). With the Temenggong's help, Raffles managed to smuggle Hussein back to Singapore. He offered to recognize Hussein as the rightful Sultan of Johor and provide him with a yearlystipend; in return, Hussein would grant the British the right to establish a trading post on Singapore.[citation needed] On 6 February 1819 Raffles succeeded in having the territory formally incorporated into the British Empire as the aforementioned trading post.[citation needed] Much of the settlement's rapid economic growth thereafter can be credited to its natural suitability as a seaport hub.[55]
On 17 November 1869, theSuez Canal opens, connecting theMediterranean Sea to theRed Sea. This allowed for a decrease in travel time, which resulted in a rise in trade volume. The nation saw a $32 million rise just a year after its opening.[56]
Trade volume reached $105 millionStraits dollars in 1879,[57] during which entrepot trade was the main source of income and trade alone accounted for more than one-third of GDP.[citation needed]
In the 1950s, the region saw social unrest which resulted in colonial powers deciding to relinquish some decision making. With spurs of race riots the colonial powers sought to empower and establish a formidable local government. With most of the unrest resulting from high unemployment, the local government was directed to solve this issue.[53] TheEconomic Development Board was formed to empower the Singapore government in establishing, developing, and financing industrial undertakings.[58]
In 1955, a Singapore local legislative Assembly with 25 out of 35 members elected was formed.[59]
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[citation needed].
AfterLee Kuan Yew was elected, he oversaw significant economic reforms to the country. Structural change and machinery propelled the economy during his tenure. Singapore was a small and densely populated nation, with very few natural resources and little space to grow outwards. Recognizing this, Lee identified that the key advantage that Singapore held was its human capital, and its ability to provide highly educated citizens capable of competing in global industry and trade. On 1 August 1961, the Singapore Government established theEconomic Development Board to spearhead an investment drive, and make Singapore an attractive destination for foreign investment.[60] 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.[61][62][63] The beginning of Lee's tenure was marked with success and from 1965–1973, annual growth of real GDP was 12.7%. He directed spending to repair and improve infrastructure. This effort spurred economic productivity and put in place the foundations needed to build up basic industry. As of 2019, Singapore's infrastructure is ranked the best in terms of quality, with a score of 95.4 out of 100.[64] The period from 1973-1979 marked a struggle for Singapore as they pivoted away from basic infrastructure spending and moved towards more sustainable economic progress. The 1973 oil crisis raised government awareness of issues such as economic concentration. It forced the government to hold new forum to discuss ways of adapting the countries economy to economic change. GDP growth during this time was slightly lower than the preceding years, at 8.5% annually. However, unemployment was virtually 0%, and most of the population had experienced great strides in productivity.[65] The government highlighted a focus in technology and education to be the new wave of economic gain.[66] In addition, they identified financial services as a key area in which Singapore could diversify and attract new growth. During this time, the government invested heavily in its budding financial services industry. It managed to minimize inflation and provide workers with the proper equipment and machinery to sustain growth.
As a result of this investment drive, Singapore's capital stock increased 33 times by 1992, and achieved a tenfold increase in the capital-labour ratio.[67] Living standards steadily rose, with more families moving from a lower-income status to middle-income security with increased household incomes.
In 1987, Lee claimed that (based on the government's home ownership criterion) 80% of Singaporeans could now be considered to be members of the middle-class. Under Lee, Singapore had both low inflation and unemployment. 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.[68]
In the late 1980s, Singapore's export-driven economic model required adjustment for further development.[69]: 79 The 1990s emergence of efficient manufacturing firms in southeast Asia challenged the nation with such a small labor force and land restrictions. Friedrich noted how " it would be "unlikely to expand beyond the current 25% share of the economy," when regarding manufacturing firms.[70] Despite struggling in the manufacturing sector Singapore thrived in global finance, trading, and was an industrial hub for international trade.[71] It positioned itself as a supplier of secondary factors, including expertise in management and industrial infrastructure, and emphasized a regionalization strategy through which it would invest in other Asian countries.[69]: 79 Singaporean investment in China was a particularly important element of this strategy.[69]: 79–80 To advance its regionalization strategy, Singapore began its Regional Industrial Parks Program to boost Singapore's domestic economy through profits from foreign industrial parks modeled on Singapore'sJurong Industrial Estate and also to build diplomatic ties in the host countries.[69]: 80
Singapore's economic strategy produced real growth averaging 8.0% from 1960 to 1999. Since the nation's independence in 1965, Singapore's GDP has amassed an average of a 9.5% increase.[72] The economy picked up in 1999 underGoh Chok Tong, the Prime Minister of Singapore, 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 theEuropean 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 theSARS 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%.
It was apparent that Singapore would also struggle due to the2008 financial crisis given its status as a financial services hub. Some market commentators doubted the economy's ability to cope with the effects of the crisis. In the end the economy grew in 2009 by 3.1% and in 2010, the nation saw a 15.2% growth rate.[72][73]
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.
2015 and 2016 saw a downturn for the nation as GDP growth shrunk to just 2 percent. Despite growth diminishing, the nation has yet to post negative growth rates which are a positive sign. During the same period of diminishing economic growth. Unemployment and inflation have also decreased.[72]
As of 2017 Singapore's GDP reached $323.907 billion.[74]
Singapore is expected to experience an economic slowdown in 2019, with GDP growth slowing to 1.9% from 3.1% in 2018, due to tariff hikes from the United States and China.[75]
During the initial months of theCOVID-19 pandemic, on 26 March 2020, Singapore's Ministry of Trade and Industry said it believed that the economy would contract by between 1% and 4% in 2020. This was after the economy shrank 2.2% in the first quarter of 2020 from the same quarter in 2019.[76] On 26 May, MTI said that it was revising down its expectation for the Singapore economy in 2020 to shrink by 4% to 7%.[77] Economists had to downgrade their numbers from previously, and some suggested that the economic recovery could take some time.[78][79] In response to the economic pressure, Moody's temporarily downgraded the Singapore banking sector that year from "stable" outlook to a "negative" outlook.[80]
It was estimated by the economist Chua Hak Bin, theSingapore circuit breaker measures in response to the pandemic, beginning on 7 April could impact the economy to the tune of S$10 billion.[81] With the lockdown imposed on construction workers, there were concerns that there could be delays in construction projects of up to six months.[82] Senior Minister of State for Trade and IndustryChee Hong Tat announced that some 3,800 companies had closed in April 2020, only slightly higher than the 3,700 reported on average for the same month in the past 5 years. Though he warned that this would likely rise in the coming months. Despite this only small increase in companies shutting down, the number of companies starting up had declined by about a third from the average April since 2015.[83]
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 andGIC Private Limited, which are used to manage the country'sreserves.[84] 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.[85]
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.[85]
As of 2014, Temasek holds S$69 billion of assets in Singapore, accounting for 7% of the total capitalization of Singapore-listed companies.[86][87] In 2017, GSK shifted its Asian Headquarters to Singapore.[88]
| 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.
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 includingwage 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.[citation needed]
Singapore is considered a global financial hub by many leading financial analysts, economists and politicians, with Singapore banks offering world-class corporate bank account facilities. In the 2020Global Financial Centres Index, Singapore was ranked as having the sixth most competitive financial sector in the world, and the fourth most competitive in Asia.[89] These include multiple currencies, internet banking, telephone banking, current accounts, savings accounts, debit and credit cards, fixed term deposits and wealth management services.[90]DBS,OCBC andUOB are the three major local banks of Singapore.[91] In 2020,MAS granted license todigital banks for the first time. GXS Bank and MariBank are the two largest digital banks in Singapore.[92][93]
Singapore has also attracted assets formerly held inSwiss banks for several reasons, including new taxes imposed on Swiss accounts and a weakening of Swissbank secrecy.Credit Suisse, the second largest Swiss bank, moved its head of internationalprivate banking to Singapore in 2005. For this, the country has also been dubbed the "Switzerland of Asia".[94]
Singapore has been aggressively developing itsbiotechnology 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 asGlaxoSmithKline (GSK),Pfizer andMerck & Co., have set up plants in Singapore. In 2006 GSK invested another S$300 million to build another plant to producepaediatricvaccines, its first such facility in Asia.[95] Pharmaceuticals now account for more than 8% of the country's manufacturing production.[96] In 2022, the biopharma industry of Singapore accounted for manufacturing output of USD 18 billion a year, a value that had tripled during two decades.[97]
Singapore is the pricing centre and leading oil trading hub in Asia. The oil industry makes up 5% 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.[98] 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.[99]
Singapore has limited potential for renewable energy mainly due to its small surface area; solar power holds the greatest potential.[100] The government set a target of generating solar power to cover 350,000 households in 2030 that would equal to 4% of the country's electricity demand in 2020.[100] As a financial hub, Singapore can play an important role in attracting investment in renewable energy in the entireASEAN region.[101]
The Singapore government also owns 90 per cent of the country's land, as well as housing in which 80 per cent of the population lives.[102]
In July 2022, a report bySavills revealed that Singapore tied with New York City in recording the highest rental growth rate for luxury homes globally.[103][104]
Tourism plays an important role in the economy of Singapore. Singapore ranks among the most visited cities in the world.[105]
 | This section needs to beupdated. Please help update this article to reflect recent events or newly available information.(July 2013) |
Singapore's total trade in 2022 amounted to $1,365.4billionSGD. In 2022, Singapore's imports were $655.4 billionSGD and exports were $710.0 billionSGD.[106]China was Singapore's main import partner, as well as its largest export market in 2021.[107] Singapore's major trading partners includeMalaysia, theUnited States and theEuropean Union.[106]
China is Singapore's largest trading partner, with bilateral trade totalling roughly 175 billion Singapore dollars in 2022.[108] 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.[109][110]
Re-exports accounted for 43% of Singapore's total sales to other countries in 2000. Singapore's principal exports are electronic components, refined petroleum, gold, computers, and packaged medications. Singapore's main imports are electronic components, refined petroleum, crude petroleum, gold, and computers.
Trade in Singapore has benefited from the extensive network of trade agreements Singapore has implementing. 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 3,000multinational 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 byMalaysia (10%), Hong Kong (9%),Indonesia (8%) and US (4%). The rapidly growing economy of India, especially the high technology sector, is becoming an expanding source of foreign investment for Singapore.
The United States strives to improve bilateral trade with Singapore and has signed the US-Singapore Free Trade Agreement in 2003. Singapore corporate tax is 17 per cent.[111]
Singapore is the European Union's 14th largest trading partner. Singapore-EU trade is worth more than €50 billioneuros a year. Singapore is also the EU's 5th largesttrade in services partner and the EU's 6th destination forforeign direct investment. Over 10,000 EU companies have set up their hubs or offices in Singapore.[112]
In 2018, the EU and Singapore signed theEUSFTA, afree trade agreement which aims to boost and promotetrade between Singapore and the EU. The agreement includes provisions on:[112]
In addition to the free trade agreement, the EU and Singapore signed an investment protection agreement which aims to encourageinvestment between Singapore and the EU. It ensures thatgovernments in the EU and Singaporetreat each other's investors equally, and replaces old-stylebilateral investment treaties between Singapore and individual EU countries.[112]
The following bilateral and plurilateral agreements are currently in effect. Signature and entry into force dates are as listed by theWorld Trade Organization.[114]
In 2000, Singapore had a workforce of about 2.2 million. With limited access to natural resources, Singapore had been forced to invest in its people.[citation needed] The country has the largest proficiency of English language speakers in Asia, making it an attractive place for multinational corporations. Singapore has come a long way from where it once stood. In the 1970s according to Tilak Abeysinghe "2.4 percent of the labor force were degree holders". By 1990 the number rose to just 6.3%. In 2013 the percentage of the labor force who held degrees reached 31%. The nation's directive toward high skilled labor jobs, has promoted both growth and education to the region.[119] TheNational Trades Union Congress (NTUC), the sole trade union federation, which has a symbiotic relationship with the ruling party, accounts for almost 99% of total organised labour. Government policy and pro-activity rather than labour legislation controls general labour and trade union matters.[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. TheSingapore 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%.[120]
While the Singapore government has taken a stance againstminimum wage andunemployment benefit schemes, in 2007 the government introduced a Workfare Income Supplement (WIS) scheme to supplement wages of low-skilled workers.[121] 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 an additional 3 years, up to 2019 to encourage employers to voluntarily re-employ older workers aged 65 and above.[122]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.[123] 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.[124] 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.[125][126]
Singapore is one of the world's wealthiest countriesper capita, but itsGini coefficient is high in comparison to developed countries. Statistics on income inequality are published by the Singapore Department of Statistics.[127] Without taking taxes and social transfers into account, Singapore'sgini coefficient puts the country in the medium range. Nevertheless, the country remains on the "very high" category on the inequality-adjusted human development index (IHDI), a ranking similar to theHuman Development Index (HDI), but withinequality also accounted for.[128]
In October 2018,Oxfam ranked Singapore 149 out of 157 in its Commitment to Reducing Inequality Index 2018, placing it among the bottom ten of the countries in the index, which ranks countries based on efforts to reduceeconomic inequality.[129] In its report, Oxfam accused Singapore of practices which encouraged "harmful tax practices", not having a universalminimum wage (apart fromjanitors and security guards), and poor performance onlabour rights.[130] The government responded to the report by claiming that it was more important to look at "real outcomes" such as Singapore's high home ownership, health, education, and employment, rather than public spending or tax rates, also saying that the report "assumes that high taxation and high public expenditure reflects commitment to combating inequality".[129]
The government provides social support through a variety of social assistance schemes. TheMinistry of Social and Family Development runs ComCare, a program which provides income support for low-income citizen households through various schemes for short-to-medium term assistance, long-term assistance, child support, and urgent financial needs.[131] TheCommunity Development Councils also run various local assistance schemes within their districts.[132] TheMinistry of Manpower runs a Silver Support Scheme which provides additional financial support for low-income elderly with no family support.[133] Meanwhile, theMinistry of Health also runs MediFund to assist families that have difficulty paying for medical bills despite government subsidies andother health financing schemes.[134] In addition, theNational Council of Social Service coordinates a range of 450 non-governmentvoluntary welfare organisations to provide social services, while raising funds throughThe Community Chest of Singapore.[135]
Today, low and middle-income groups now receive 2.5 times the public subsidies they did ten years ago.[136]
Government spending in Singapore has risen since the start of the2008 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.[137][138] 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.[139][140][141]
Personal income taxes in Singapore range from 0% to 22% for incomes above S$320,000.[142] There are no capital gains or inheritance taxes in Singapore.[143][144] 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.[145]
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.[146]The GST rate increased to 4% in 2003, 5% in 2004, 7% in 2007, 8% in 2023, and 9% in 2024.[147][148]
The Singapore government owns two investment companies,GIC Private Limited andTemasek Holdings, which manage Singapore'sreserves. 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.[149][150][151] While GIC invests abroad, Temasek holds 31% of its portfolio in Singapore, holding majority stakes in several of the nation's largest companies, such asSingapore Airlines,Singtel,ST Engineering andMediacorp.[86] As of 2014, Temasek holds S$69 billion of assets in Singapore, accounting for 7% of the total capitalisation of Singapore-listed companies.[86][87]
In April 2013, the country was recognised 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[90] that can minimise both withholding tax and capital gains tax. Australian millionaire retailerBrett Blundy, with an estimated personal wealth worth AU$835 million, and multi-billionaire Facebook co-founderEduardo Saverin are two examples of wealthy individuals who have settled in Singapore (Blundy in 2013 and Saverin in 2012). Additionally, Australian mining magnateGina Rinehart owns property in Singapore[152] and American investorJim Rogers moved to Singapore in 2007—Rogers has identified the 21st century as an era in which Asia will dominate and wishes for his two daughters to learn Mandarin as a key outcome of the relocation.[153][154] Chinese Media TV celebritiesJet Li andGong Li have also taken up naturalised Singapore citizenship.[155][156]
TheMonetary Authority of Singapore (MAS) is Singapore'scentral bank andfinancial regulatory authority. Its current chairman isLawrence Wong (July 2023–present).[157] It administers the various statutes pertaining to money, banking, insurance, securities and the financial sector in general, as well ascurrency issuance. The MAS has been given powers to act as a banker to and financial agent of the Government. It has also been entrusted to promote monetary stability, and credit and exchange policies conducive to the growth of the economy.
Unlike many other central banks such asFederal Reserve System,European Central Bank orBank of England, MAS does not regulate the monetary system via interest rates to influence the liquidity in the system. Instead, it chooses to do it via the foreign exchange mechanism, which it has been doing since 1981. In doing so it manages the Singapore dollar versus a number of currencies that they do not reveal publicly – a Singapore dollar nominal effective exchange rate (S$ NEER). It carries this out by intervening in the SGD market as well as other operations in the money market.[158][159] The MAS reviews its policy stance less frequently than most central banks, in a cycle that is around every 6 months.[160] In some circumstances, such as during theCOVID-19 pandemic MAS can change the date of its twice yearly meeting.[161]
In May 2022, six major banks agreed to pay $64.5 million to resolve antitrust allegations that they worked together to rig benchmark Singapore interest rates. The banks involved included Credit Suisse AG, Deutsche Bank AG, The Hongkong and Shanghai Banking Corporation Limited, ING Bank N.V., Citibank N.A. and JPMorgan Chase & Co.[162]
| Date | Changes |
|---|---|
| 22 February 2001 | gradual modest appreciation rate of appreciation of SGD NEER band.[163] |
| 10 April 2001 | gradual modest appreciation rate of appreciation of SGD NEER band.[164] |
| 12 July 2001 | zero percent rate of appreciation of SGD NEER band.[165] |
| 10 October 2001 | zero percent rate of appreciation of SGD NEER band; width widened.[166] |
| 2 January 2002 | zero percent rate of appreciation of SGD NEER band; width narrowed.[167] |
| 14 October 2016 | zero percent rate of appreciation of SGD NEER band; no change to width and the level at which it is centred.[168] |
| 13 April 2017 | zero percent rate of appreciation of SGD NEER band; no change to width and the level at which it is centred.[169] |
| 13 October 2017 | zero percent rate of appreciation of SGD NEER band; no change to width and the level at which it is centred.[170] |
| 13 April 2018 | slightly increase rate of appreciation of SGD NEER band; no change to width and the level at which it is centred.[171] |
| 12 October 2018 | slightly increase rate of appreciation of SGD NEER band; no change to width and the level at which it is centred.[172] |
| 12 April 2019 | unchanged rate of appreciation of SGD NEER band; no change to width and the level at which it is centred.[173] |
| 14 October 2019 | slightly reduce rate of appreciation, with no change in width.[174] |
| 30 March 2020 | zero percent per annum rate of appreciation, starting at the prevailing level with no change in width.[175] |
| 14 October 2020 | There was no change in foreign exchange policy from the March decision.[176] This was expected by all economists.[177] |
To dampen property speculation, the government imposed Additional Buyer's Stamp Duty (ABSD) starting in December 2011. It was subsequently raised in January 2013 and then again in July 2018. Currently for Singapore citizens buying their first property, there is no ABSD. For their second property onwards, they pay up to 15% ABSD. For foreigners the ABSD rate is 60% no matter if it is the first property. And for entities it is 65%.[178] At the same time they raised the ABSD in 2018, the MAS tightened rules on housing loans, by limiting the loan tenure and reducing the Loan-to-Value ratio.[179][180]
16,156 mergers and acquisitions deals have been conducted in Singapore so far, which accumulated to a total value of US$850 bil. Since 1985 there has been a constant upward trend, disrupted only in 2002 and 2009.[181] The most active year in terms of numbers (926) and value (US$78 bil.) has been 2017, so there is currently an all-time high. In general inbound and outbound deals in Singapore are nearly equally distributed.
Here is a list of the top 10 deals with Singaporean participation inbound or outbound:
| Date Announced | Acquiror Name | Acquiror Mid Industry | Acquiror Nation | Target Name | Target Mid Industry | Target Nation | Value of Transaction ($mil) |
| 2 January 2008 | Shining Prospect Pte Ltd | Other Financials | Singapore | Rio Tinto PLC | Metals & Mining | United Kingdom | 14,284.17 |
| 7 September 2015 | Petrol Complex Pte Ltd | Oil & Gas | Singapore | Essar Oil Ltd | Oil & Gas | India | 12,907.25 |
| 14 July 2017 | Nesta Investment Holdings Ltd | Other Financials | China | Global Logistic Properties Ltd | Non Residential | Singapore | 11,553.58 |
| 12 October 2016 | QHG Shares Pte Ltd | Other Financials | Singapore | Rosneft Oil Co | Oil & Gas | Russian Fed | 10,776.55 |
| 12 October 2007 | Government of Singapore Invest | Alternative Financial Investments | Singapore | UBS AG | Banks | Switzerland | 9,760.42 |
| 26 March 2001 | Singapore Telecommunications | Wireless | Singapore | Cable & Wireless Optus Lt | Telecommunications Services | Australia | 8,491.12 |
| 12 January 2014 | Investor Group | Other Financials | Singapore | IndCor Properties Inc | REITs | United States | 8,100.00 |
| 30 March 2007 | Investor Group | Other Financials | Singapore | Alinta Ltd | Oil & Gas | Australia | 7,500.98 |
| 13 September 2012 | TCC Assets Ltd | Other Financials | British Virgin | Fraser & Neave Ltd | Food and Beverage | Singapore | 6,896.48 |
| 15 January 2008 | Government of Singapore Invest | Alternative Financial Investments | Singapore | Citigroup Inc | Banks | United States | 6,880.00 |
Percentage of economic growth:1.7% (2016)[182]
Industrial production growth rate:1% (2016 est.)
Electricity – 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$ orSGD) = 100 cents
Exchange rates:[183]
| 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 |
| 2017 | 1.3807 |
| 2018 | 1,3491 |
| 2019 | 1.3642 |
| 2020 | 1.3792 |
| 2021 | 1.344 |
| 2022 | 1.3789 |
| 2023 | 1.3431 |
