This report provides the profile of Singapore as it examines the business opportunities that exists in the country. The information provided in this report is important to entrepreneurs who might have interests in investing or doing business in the country. It examines the economic landscape, the political environment, and major industries, social cultural, religious, and geographical factors that influence the country’s business environment. Methodology used for the key findings in the report is online research. The data was retrieved from credible online sources with up to date country information. The main findings are summarized below.
Major industries
There are a lot of prospects in the country’s business environment because of the high GDP in relation to purchasing power parity. The projected growing trend of its economy was 3.3 percent at the end of the final quarter of financial year 2012. The business, finance and insurance sector are the largest contributors to the growth GDP growth. The sectors collectively have a projected growing trend of 2.1 percent. However, the economy depends heavily on the refining imported goods and on exports. The main sectors in the manufacturing industries include biomedical science, mechanical engineering, chemicals, petroleum refining, and electronics.
Economy
The country has a well developed market based economy. With only a population of 5 million people, IMF categorizes Singapore as a developed country. According to IMF data its GDP was $341 billion in 2012 and was ranked 41 globally. China, Hong Kong and Malaysia are the main export partners of the country. The main goods exported out of the country include refined petroleum product, pharmaceuticals, and machinery and equipment. With regards to imports, the US, China and Malaysia form the top three major import partners with chemical, mineral fuel, and machinery being the main imports.
Political
The political landscape of the country is marked by democracy. In January 26th 2013, Singapore went through a democracy test which it passed impressively well. Even though it was just a single parliamentary seat, analysts argue that the loss of the by-election by the ruling party could force the government to make a choice between investors and locals. There has been a public outcry that foreigners are given more priority than the locals. This fact is the primary reason for the failure of the ruling party to capture the seat during the by-election. Most investors have seen the country to be independent from politics, but the recent development in the political scene tend to suggest a rise in multiparty politics where other parties are likely to have a say in the process of policy making. However, currently the ruling party has majority in the parliament thereby easily passing policies through the legislative avenue.
Language
Tamil, Malay, Chinese, and English are the four official languages used in Singapore. However, English is the most common language used by business people, the government, and in schools as a medium of instruction.
Cultural
The country is rich in culture because of its diverse nature. As a result, the single most acceptable cultural norm is accepting everyone. This sets a good environment for enterprises in the country.
Religious
Religion and social cultural factors have also played a role in influencing the country’s business environment. In Singapore, there is freedom of religion which has greatly been linked to the country’s economic prosperity over the years.
Social cultural
The society also has a culture of embracing diversity. Ethnic differences existing in the Singaporean society are accepted and used to unite the society.
Historical factors
Just like many other country, Singapore was once subjected to colonial rule however, it has emerged to become one of the most prosperous places in the world. The economy of the country is normally driven by the financial, manufacturing, and electronic services. Most of its citizens enjoy high living standards within its public tower blocks.
Geographic factors
Singapore is one of the countries in South East Asia known for its wealth and hi-tech status. It is an island that is linked by a bridge and a cause way to the southern part of Malaysia. It is surrounded by stable and growing economies in the South East Asia. It has good tropical climate with a pleasant environment for people to live in all throughout the year. There are no seasons of extreme weather conditions. Chinese constitute the majority of the citizens with an estimated 75 percent of the community. The remaining 25 percent is made up by Malays and Indians.
Key issues to watch in the business environment
According to data from the 2013 world economic forum, the country ranks first globally in the ease of doing business. Singapore has maintained this first position since the year 2012. In terms of competitiveness, data from the world economic forum 2013, ranked Singapore second in the world, a position which it has held since 2012. Singapore is also considered one of the least corrupt countries in the world. in 2012, the country was ranked first in the world as the least corrupt country but dropped four positions to stand at position five in 2013.
In line with the recent political development, the 2011 election highlighted the dissatisfaction of voters with the increasing number of foreign workers in the country. This has therefore led to a tight immigration policy where the government aims to reduce over reliance on the foreigners. The seriousness of the government with this issue was seen in July 2012, when the percentage of foreign workers allowed in the manufacturing industry was cut down from 65 percent to 60 percent.
The top sectors in the country by value added include wholesale trade, retail, banking and related financial, public administration and defense, health and social services, business services, construction, real estate, land transport, and education. The GDP has been projected to be on a growing trend until the year 2017.
Conclusion
In conclusion, Singapore currently offers entrepreneurs a perfect opportunity for investment. The country shows a lot of potential in terms of economic growth which investors can use to their advantage. However, due to the public outcry about the influx of foreigners in the country, the business environment is likely to take a new shift.
Works cited
CIA. Singapore. 5 February 2013. 13 March 2013.
LLOYD's. Country Profile: Singapore. New York: LLYOD'S, 2013. Print.
World Economic Forum. The global competitiveness report. Geneva: World Economic Forum, 2013. Print.
