Despite being one of the smallest countries in size – and hence its name the red dot – Singapore was recently ranked by a respected competitiveness analysis report as being in the second position world wide as far as competitiveness is concerned. Singapore is also one of the most successful stories of the twentieth century in terms of developmental success. Here are some of the reasons for their massive success despite their limitations
Soon after gaining independence in 1965 the inaugural government of Singapore embarked on an ambitious plan to provide the best social amenities to its citizens. These amenities included hospitals and other medical services, housing for its citizens and infrastructure. Their plans were so ambitious that they also ventured into ship building and private banking.
Success of these programs can clearly be manifested through the state of the art sky scrapers that dot this small island. While tourists are able to enjoy the outdoors air from the balconies of 5 star hotels, low income earners and students often have to contend with sharing housing such as in the common rooms and budget apartments where several young people come together to share costs.
The policies related to tax that have been formulated and entrenched by Singapore are aimed at allowing companies to maximize on their returns and are also meant to pull in more international investors.
Capital gains tax is also not enforced in this country hence gains from the sale of assets is never taxed. Conservative market analysts have for a long time viewed Singapore as one of the biggest successes of our times in regard to its free market policy.
With very few restrictions on capital, low tax and friendly policies on immigration, Singapore is consequently one of the biggest cosmopolitan states. It also ranks very highly on the ease of doing business survey with the time required to register a company having reduced to just three hours.
According to the competitive analysis report highlighted above, the system of education in Singapore is also rated at number two in the whole world. Apart from raising the standard of its training institutions and other post high school institutions to the highest international standards, Singapore has also joined hands with 29 renowned international campuses including Massachusetts University. These institutions have been handy in releasing highly skilled employees in to the job market making its job market one of the most highly globalised economy.
The port of Singapore was initially used by their colonizers to serve their interests as a hub for processing of goods and shipping them to different parts of the world. After independence the government moved in to make necessary mechanization of the port which has since risen in rank to one of the top ports in the world based on the amount of goods that are processed from the port. The port of Singapore can thus be said to be one of the key drivers of the country’s economy and a key attraction to multinational companies.