Singapore: Success at Home, Challenges from Abroad

Summary

Introduction

The year 2007 came in an upbeat mood in Singapore. The economy was showing a strong momentum of growth following its good performance in 2006. Singapore had seen a record high of more than nine million tourists. In his National Day Rally speech, Prime Minister Lee Hsien Loong reiterated his positive outlook, arguing that “Singapore is on the move, things look good” 2 and “there's optimism all over Asia”. By the end of the year, Singapore was still doing well. Despite difficulties in the region and beyond, there is a renewed sense of confidence and accomplishment as the team led by Prime Minister Lee navigates successfully through difficult terrain to bring about success for the city-state. Yet, upon closer scrutiny, amidst the strong economic growth and the relative peace and security, Singapore also faces a number of challenges.

Brimming with Prosperity

For Singapore, a strong economy, which is vital for its survival, is even more important than military security. On 19 November 2007, the Ministry of Trade and Industry announced that Singapore's economy was expected to grow by 7.5 to 8 per cent in 2007 and 4.5 to 6.5 per cent in 2008. 4 The year 2007 also saw Singapore achieving its lowest rate of unemployment. Various factors contributed to Singapore's growth. First, Singapore achieved high levels of efficiency and maximized the use of scarce resources through its ability to adapt and shift from heavy manufacturing to the promotion of services such as finance, retail, and tourism. Second, with the reputation of being clean, efficient, and corruption- free, Singapore remains attractive to investors. Third, the burgeoning economies of India and China coupled with a favourable global economy led Singapore towards higher growth rates. These developments have led many to conclude that Singapore's economic outlook is likely to remain positive.

Addressing the nation at the National Day Rally, Prime Minister Lee unveiled promising socio-economic projects.