...Introduction Singapore is an economically well-developed country; it enjoys a remarkably open and corruption free environment, stable price and a GDP per capita that is higher than most developed countries. Singapore depends heavily on exports, particularly in technology and biomedical, and services provide the main source of revenue for its economy. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue to establish itself as Southeast Asia’s financial and high tech hub. A Production Output Performance Analysis, Labour Market Analysis and Price Level Analysis will be provided from the viewpoint of Singapore’s economy to assess the performance trends over the past 10 years and what measures Singapore government has taken to achieve such performance. Production Output Performance Analysis The graph above shows Singapore GPD at constant prices The graph above shows Singapore GDP annual growth rate The graph above shows Singapore GDP per capita based on PPP Singapore has strong economic growth since 2004 after adapting to several shocks which include the global economic slowdown in 2001, the outbreak of SARS and the Iraq war in 2003, which affect tourism badly Singapore has a GDP growth of average 8.6% from 2004-2007. The economy contracted 0.6% in 2009 due to financial crisis, but rebounded 15.2% in 2010 on the strength of renewed exports, before slowing to 6.0% in 2011, 2.5% in 2013 and 3.8% in 2013, largely due...
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...central bank of Singapore; Monetary Authority of Singapore (MAS), has reported slowing down the pace of the Singapore dollar's appreciation to stimulate the economic growth. During the beginning of the 4th quarter this year, it was reported that Singapore's core inflation had reached a six-month high record of 0.6 per cent in the year, but the possible issue of deflation due to the slow global growth is still the primary concern for most. One of the other reason that why MAS wants to use a more aggressive easing approach to slow the local dollar’s gain against its trading partners could be the need of guarding against the import inflation. Due to high demand, Singapore yearly imports around S$464 billion of goods and major of them are the fruits and vegetables, the weakening of Singapore dollar compared to US dollar makes the prices of most imported perishable items more expensive. The secondary reason could be coming up with fiscal expansionary policy measures to revive the growth mainly because the government’s spending on building infrastructure over the past years have shown positive effects. Lastly, the estimation of unexpectedly stronger advance Gross Domestic Product (GDP) growth in the third quarter could be the reason for slowing the pace of local dollar appreciation. Introduction Due to the scarcity of land and labor, Singapore is facing not enough manpower and at the same time underemployment and also imported inflation. Underemployment...
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...Introduction: The Republic of Singapore was known as a thriving British trading port back in 1819. She then merged with Malaysia in 1963, but was expelled from the federation in 1965. Singapore, without natural resources, was doomed to fail in eye of neighbouring nations. But has transformed from third to first world standards in a very short period of time. Singapore also became one of the world’s most affluent nations with important trading links such as one of the busiest ports in the world and best airport infrastructure in the world for years running. Singapore’s GDP per capita is comparable to first world European nation’s counterparts as well. Singapore’s economy is largely dependent on exports, some examples are IT-related, user electronics products, pharmaceuticals, and financial services industries. For instance, the republic has one of highest volume in export refineries around the globe, oil exports accounted about 68.1m tons in 2007. The O&G industry accounted for 5% of Singapore’s GDP as well. (Economic Development Board, n.d). According to Strait Times: Singapore secured position as the second freest economy in the world in 22 straight years, the acceptance to global trade & investment remains to contribute a sturdy support for economic dynamism in Singapore. One of the key events happened past decade in Singapore is the collapse of Lehman Brothers that leads to financial crisis in 2008. The Republic takes the lead among the East-Asian countries...
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...This article describes inflations in Singapore in recent times. For the first time in five years, previously due to global financial crisis, inflation rate turned negative also known as deflation, crediting the plunging of oil prices. According to Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS), CPI for all items fell due to decrease in private transport costs, taking fuel cost as main component of private transport costs. Aside from that, prices in housing and clothing/footwear categories also fell. CPI for all items is expected to remain subdued and expected to drop further in current year due to anticipated increase supplies of car COEs and newly completed housing units. Core inflation, which excludes the costs of accommodation and private road transport, is seen as a better measure of everyday costs, has also lowered due to a smaller increase in services fees. Core inflation is likely to stay firm and average 2 per cent to 3 per cent this year. This article points out the various causes of fall in inflation in Singapore late last year. Apart from higher supply, the drop in crude oil prices is a also the product of slowing growth. As a result of weaker demand and reluctance on the part of oil producers to cut supply. According to economists, the slump in global oil prices pulled down headline inflation in Singapore. Global crude oil prices have fallen in recent months to about US$60 per barrel on Tuesday, as a result of weaker...
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...The inflation rate in Singapore was rose to 4.9 percent in February 2013. According to CNBC.Com, the rise was mainly because of more significant increase in private road transport costs as well as food and services inflation were also stronger during the month of February. However, the outlook for 2013 inflation was unchanged at 3.5 to 4.5 percent according to Ministry of Trade and Industry (MTI) and MAS. Both MTI & MAS also reiterated core inflation is likely to average 2 to 3 percent for the whole year. In addition, Nuno Fontes from Trading Economics has said this temporary pick up had been anticipated in the January inflation report due to private road transport cost has climbed by 17.4 percent in February, up from 10.5 percent a month earlier. Discussion A. GDP There are 3 GDP related indicators to study the performance of economy. GDP counts the value of goods and services at the time they are produced. There are two methods of measuring GDP. i. Income Approach: adding up households income i.e. wages, rent, interest and profit ii. Expenditure Approach: GDP = C + I + G + (X-M) The nominal GDP measures the GDP using the value of all the goods and services produced in current prices. Real GDP measures the value of all the goods and services produced in the prices from year to year. • Real GDP = Nominal GDP x 100 GDP Deflator GDP Deflator = (Nominal GDP / Real GDP) x 100 B. Business Cycle Business cycles are dated according to when the...
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...Title: Housing and car prices push up inflation Introduction: Singapore is a country where has very limited natural resources which therefore Singapore have to highly depend on imports goods. As we can see from statistic, the Import Price Index rose 2.3 per cent in March 2012, following the 2.4 per cent increase registered in the previous month, Ministry of Trade & Industry told. (March 2012). Retrieved from http://www.singstat.gov.sg/pubn/prices/ipimar12.pdf. As we are consuming a lots of imports products, , the prices of the products are more expensive compare to other countries such as Malaysia who has natural resources that can produce their own goods. Singapore, we can see that the prices of goods and services around us are continuing increasing. (Alvina Soh). (October 2011). On Wednesday, the COE price for big cars registered the steepest jump, of S$12,289 to S$75,889. This was followed by the Open Category COE which rose S$8,542 to S$73,600. Retrieved from http://www.channelnewsasia.com/stories/singaporelocalnews/view/1160394/1/.html. (Global Property Guide). (August, 2011). Non-landed property prices rose by 1.4% q-o-q in Q2 2011, compared to a 1.7% rise the previous quarter. Retrieved from http://www.globalpropertyguide.com/Asia/Singapore/Price-History. The goods that have the most rapid increase on the price are the houses and vehicles, as shown above, which therefore led to a sharp, accelerate inflation that I will discuss from the newspaper...
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...Summarization of the article The article I would like to discuss about is “The dollars and sense of inflation” for the Straits Times newspaper written by economics correspondent Aaron Low. In the article, the author discusses about the inflation report in Singapore which came with two indicators. The first was a breakdown of how inflation had affected the various income groups. According to the Department of Statistics (DOS), the top 20 percent of income earners face with a 5.7 per cent inflation rate due to the rising costs of private transport and property rental while the bottom 20 per cent saw prices rise by only 4.7 per cent. Another new indicator by DOS excluded the costs of housing rents. DOS reasoned that since 87.2 per cent of Singaporeans own their own housing, the new indicator was complied “as an additional indicator to track households’ actual expenditures. In this indicator, the inflation rate for the lowest 20 per cent was just 2.2 per cent less than half the rate that the top 20 per cent experienced. The writer mentioned that inflation is just half of the equation calculating the impact of rising prices on the welfare of people and how fast incomes have raised equally matters. The writer argues that the lower income groups may have been hit with lower inflation but their incomes also rise by less than what the top percent enjoys. The writer mentioned that another reason not to worry too much about a rise in the consumer price index is that a large part of...
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...greatly affected Singapore economy. The article also focused on the nation behaviour of the declining economy for US and Greece due to finance crisis which in turn affect other nations, in this case, Singapore. In fact, the article briefly explained how aggregates like national income and output have affected US and Greece economy, which in turn affected Singapore. It will be further discussed whether this mentioned global crisis will affect Singapore inflation, causing a rise in unemployment rate and the slowing of GDP growth for emerging markets. Summary of the article The article comments on how two of Singapore’s trading partners, mainly US and Greece, are hurting themselves with their debt problems and the impact of their problems on Singapore economy. It briefly describes what US debt ceiling is and the heavy borrowing of Greek government which has greatly contributed to the global debt crisis. It also explains on US debt problem and other aftershocks if the debt ceiling is not rise. Moreover, it explains the debts that Greece had incurred and what will happen if Greece defaults on its debts. Lastly, it further highlighted that the Singapore economy is affected by the two countries’ debt problems. Identify and discuss on the economics concepts and models that will be suitable for analysing the news article Macroeconomics model is concerned either with the economy as a whole or with major aggregates such as national income and output, price inflation, total consumption...
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...Overview Of Singapore 3 1.1 Highlight Of Singapore Economy 3 2 Economic Indicator Analysis Of Singapore Economy 4 2.1 GDP 4 2.1.1 GDP(Gross Domestic Product) 5 2.1.2 GDP Growth Rate: 6 2.1.3 GDP Per Capita 7 2.2 Labour 8 2.2.1 Unemployment Rate: 9 2.2.2 Employed Person 10 10 2.3 Price 10 2.3.1 CPI(Consumer Price Index): 11 2.3.2 Inflation Rate: 12 2.3.3 GDP Deflator 13 3 References 14 * OVERVIEW OF SINGAPORE Singapore is a highly developed trade-oriented market economy. It has been ranked as the most open in the world, least corrupt, most pro-business, with low tax rates. Singapore is a wealthy country with a medium-sized economy, located in East Asia. Singapore has the world’s 35th largest economy by nominal GDP. It is a high-income economy with a gross national income of $47,210 per capita (statistics of 2013). It provides the world’s most business-friendly regulatory environment for local entrepreneurs and is ranked among the world’s most competitive economies. In the decades after independence, Singapore rapidly developed from a low income country to a high income country. GDP grew with an average of 7.7% since independence; in the first 25 years growth topped 9.2%. Per capita GDP over the same periods grew by 5.4% and 7.2%. Rapid industrialization took momentum in the 1960s and, by the end of the decade; manufacturing had become the lead sector of the country’s economic growth. By the early 1970s, Singapore had reached...
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...| $314.5 billion [US dollars] | Inflation | 4.6% | Economic System | Free market economy | Major export and import products | Exports: machinery and equipment, consumer goods, pharmaceuticals and other chemicals, mineral fuelsImports: machinery and equipment, mineral fuels, chemicals, food and consumer goods | Major export and import tradition partners | Exports: Malaysia 11.9%, Hong Kong 11.7%, China 10.4%, Indonesia 9.4%, US 6.5%, Japan 4.7%, South Korea 4.1%Import: Malaysia 11.7%, US 11.5%, China 10.8%, Japan 7.9%, South Korea 5.8%, Indonesia 5.4% | Balance of Payment | 6,264 million dollars | * Infrastructure development ASEAN Framework Agreement on Multimodal Transport (AFAMT) is a critical support of transportation sector to the logistical and service in regional and international trade, ASEAN had worked to facilitate the door-to-door delivery of goods using various modes of transport under a single transport document with the AFAMT. * Per capita consumption level of your product if applicable * Country development level (may include GDP and GDP growth, inflation, Purchasing power and PPP in the last 3-5 years The Gross Domestic Product (GDP) in Singapore was worth 222.70 billion US dollars in 2010, according to a report published by the World Bank. The GDP value of Singapore is roughly equivalent to 0.36 percent of the world economy. Historically, from 1960 until 2010, Singapore GDP averaged 48.1600 billion USD...
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...What fundamentals affect the yield of bonds (Singapore market) By: G8 Lee Kang Wee Olivia Tan Daryle-‐alexis Tan Ho Guoming FIIM FNCE 102 Professor Huang Sheng Introduction As an international financial centre with about 11% of GDP from financial services, we felt it would be interesting to find out more about the Singapore money market. Since the start of the new millennium, Singapore’s bond market has taken off and has now one of the most developed bond markets in Asia with about SGD357 billion in 2011 and this number is expected to grow further with more and more money flying into Asia from the West due to various economic situations. One area of high growth is in the Islamic debt area. For the purpose of ...
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...borrowing and using other countries savings to meet its local investment and consumption demands. In contrast, if a country has a negative capital and financial accounts, it will have a current account surplus - because the credit is more than the debit. It means that this country is using its saving for investing. In Singapore, the government is heavily managed the country’s economy. It promotes high levels of savings. Also, the Monetary Authority of Singapore focuses on accumulating foreign reserves. Consequently, Singapore became a net creditor to other countries. It has a large current account surplus and saving accumulation in excess of domestic investment demand, which lead to produce a long-term real appreciation of the SGD. 2. What is a real exchange rate? What determines real exchange rates in the long-run? Real Exchange Rate = Nominal Exchange Rate - Inflation It’s the ratio at which any country’s own currency is equivalent to other currencies in terms of purchasing power. It discounts inflation from the nominal interest rate. It also provides a better measurement of countries exchange rates. The Monetary Authority of Singapore focused mainly on inflation and didn’t use exchange rate as a competitive tool. Therefore, Singaporean...
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...related centrality in Southeast Asia without recognizing its little measure. Singapore is a standout amongst the most open, and accordingly aggressive, showcases on the planet. Singapore's quick financial development from the 1960s set off its change into a present day city-state today. It has now a populace of more than four million individuals (counting outside labourers and perpetual occupants) living in a range of give or take 685 sq km. Exchange still constitutes the main part of the economy with fares adding up to more than US$120 billion and imports are assessed at about US$117 billion. In the decades after...
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...budgeting * Industry research and brief analysis of capital budgeting Evonne & Cheryl: * Excel spreadsheet * Capital budgeting decision & techniques applied * Recommendations to management Sapnaa & Si Ying: * Present Value * Time Value of Money for assigned company * Report compilation Executive Summary Capital budgeting is the process in which a business determines whether projects such as building a new plant or investing in a long-term venture are worth pursuing. From our industry research it can be seen that the main potential challenges Punggol Waterway’s food and retail outlets will face would be competition from other Singapore tourist attractions, competition from upcoming retail and food outlets development in Singapore, tourism industry trends, Inflation, slowing economic growth and decreasing wages. By coming up with cash flow statements the net present value, internal rate of return and payback period can be calculated. The net present value was calculated to be $1,534,247.96 and since it is more than zero, it is recommended that the project should be undertaken. Also the Internal Rate of Return was 8.41%. Since the IRR, it is higher than the required rate of return of 8%, the project should be undertaken. The payback period was made out to be 4.29 years. The time value of money for the investment in the present was also calculated for the 3 3 different offers available. For the first offer the present value was determined...
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...VEBLEN Exchange Rate Policy at the Monetary Authority of Singapore Dr. Khor Hoe Ee, Assistant Managing Director, Monetary Authority of Singapore (MAS), reviewed the year-end economic data for 2001. He had just met with a number of his colleagues and now paged through the statistics they had discussed. Dr. Khor wondered whether the monetary system that has served Singapore so well since the late 1970s—and had filled the void left by the collapse of the Bretton Woods currency system—was still the best model for Singapore to follow. Singapore’s managed float, sometimes referred to by journalists as a “dirty float,” stood in contrast to the systems used by some of its neighbors: Hong Kong had remained strongly committed to its peg against the U.S. dollar, and Australia had just recently shifted to a completely floating regime. A key item on the agenda for the Monetary Policy Committee meeting at the end of January was to review and set monetary policy in response to the changing economic environment. As head of the MAS’s Economics Department, Dr. Khor knew that he was responsible for recommending a policy response that would be consistent with Singapore’s strategy for sustainable economic growth with price stability as well as supporting Singapore’s role as a major global financial center. A great deal had happened in the domain of monetary policy in the last five years, much of which posed challenges for Singapore. Since the massive currency depreciations of the Asian...
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