Singapore is a nominally democratic state that has been ruled by the People’s Action Party (PAP) since independence in 1965. Singapore’s economy has come a long way. From a Third World economy with a gross domestic product (GDP) per capita of S$1,374 (US$1,136) in 1961, Singapore is now recognised as one of the most competitive economies in the world, with a GDP per capita of S$53,143 (US$43,955) in 2009. Today, its economy is diversified and globally competitive.
Numerous of the world’s leading companies have built a strong and multi-faceted presence in Singapore, reinforced by energetic industry systems comprising both local and foreign enterprises. Its main industries are electronics, chemicals, financial, oil drilling, equipment, petroleum refining, rubber processing and ships constructions and trade.
Singapore is also a member of the ASEAN and so in highly involved in trade with partner countries such as China, Indonesia, South Korea, Malaysia, Japan and United Arab Emirates.
The government enforces strong anti-corruption measures, and acts of bribery and the top income tax rate is 20 per cent, and the top corporate tax rate is 17 per cent. The trade regime is very open and competitive, and no tariffs are imposed on imports. Foreign and domestic businesses are treated equally under the law, but foreign investment in some service industries remains limited.
Singapore is also the leading global financial hub. The well-organized financial sector is highly competitive. The government has been opening the domestic market to foreign banks. Over 100 of 120 commercial banks are now foreign.
Singapore’s Industry overview
Through the help of this chart you can understand that the whole economy is more involved with the services sector and all the business that involve services, this has made Singapore flourish highly.