Singapore Inc.

ERCs recommendation is not enough for capital of capital of capital of Singapore to repress future threats Rapid growth without deep-rooted frugality The worlds most rapid growing economy After independence from Malaysia, Singapore is one of the most fast growing economies chthonian its exacting economic policies. Singaporeans income per capita had been rapidly boastful from $427 USD in 1960 to $20,748 USD, and its GDP grew 10.3%, in 2000. The main powers for economic developing are: * Political System - strict control and anticorruption allowed political sympathies to apply economic plan easily. * Government-owned company provide the al-Qaida necessary both to improve living conditions and to make the area attractive for foreign investment. * Foreign Direct Investment Singapore had few restrictions relating to FDI and charged no gains tax. Increasing dependency of impertinent environment Since 1997s Asian economic crisis and 2001s U.S. economic downturn, Singapores economy shrank by 2.2% in 2001. ERCs recommendation for 2003, including corporate and personal income tax cut and change magnitude Goods and Service Tax is not enough to make Singapore economy healthier in the long run. Strict commandment: decrease economic flexibility Singapore economy grew under rigid statutes, including on political, social, economical parts.

However, these strict rules also prevent its economy from having autonomy and flexibility in those parts: 1. Effectiveness of regulation continuously decrease: * Despite the launch of productivity movement, Singapores growth of TFP had recently dipped sharply. (Exhibit A) * Highly regimen intervention will be forced to retract by internal and external demand. 2. Keep Singapore attractive to its populate: * Singapore had difficulty retaining its skilled workforce. * Government issues work permits as a macroeconomic tool to regulate unemployment, wages, and inflation. * In 2002 prospect - 20% of Singaporeans considered... If you want to get a full essay, sanctify it on our website: Orderessay

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