Singapore Economy 2015

Last modified: December 11, 2015


Singapore has again secured the 2nd position in the list of freest economies in the world. The score of 89.4 achieved in 2015, for this indicator, remains unchanged from the last year. Hong Kong has beat Singapore to the 1st position by a small margin of 0.2. The list covered 42 countries from the Asia-Pacific region.

Economic Freedom in Singapore

Singaporean economy is taking the right cues from its managers and during the last 5 years has gained 2.1 points in the economic freedom indicator. It is a significant rise and a just reward for the commitment shown by the Singapore towards economic reforms.

Singapore is riding the wave of reforms and its economy is expanding at a rapid rate. The economic reforms ensure enough space for the free trade and investment, labor, and business freedom. The continued development in this direction has done a lot to ensure Singapore’s edge over its competing economies.

Singapore Taxation

Singapore is one of those countries that have reigned in the corruption among its ranks. One of its USP is the lower rates of personal and corporate income taxes. The Singaporeans have to pay a maximum of 20% income tax. On the other hand, corporate rate is 17% at its maximum. The entrepreneurs enjoy an efficient regulatory framework, which enables them to setup company in Singapore in 1 – 3 days. It is mainly because of the straightforward incorporation procedures.

Singapore takes great pains to maintain its legal processes in tune with the changes in the practices. Though it started with the British legal system, the continued improvements in it have earned it appreciation from all over the world. It has led to its reputation of having tremendous success with the conclusion of court cases. Singapore offers one the toughest Intellectual Property (IP) laws. Naturally, it has become a shelter for the companies and the individuals that deal with the innovations and creative ideas.

Singapore Economy in the First Half of 2015

According to the Ministry of Trade and Industry (MTI), the global economy, in the first half of 2015 did not performed as expected. The performance, as it was judged in August 2015, is too weak.

Singapore economy, on its part, showed improvement by 1.8% on year-on-year basis. It has declined sharply against the growth of 2.8% achieved by the 1st quarter of 2015. Though the growth is lower than the expectations, it almost matches the number forecasted by the Singapore government. The forecasted growth in the GDP 2015 has been adjusted between 2 and 2.5 percent.

Will Singapore Overcome the Financial Crisis 2015?

The Euro zone and the US markets are expected to show modest positive performance over the 2015. On the other hand, there are concerns over the state of the Chinese economy. The country has not recovered from the beating it got from its property market and excess capacity in the heavy industries.

It is August 2015, and there are growing concerns over the failing of Chinese economy. It is yet another slump in the Chinese stock market. The shanghai shares have plummeted 8.5percent. It has wiped out the gains that the intervention of Chinese government, the banks, and the devaluation of Yuan (Chinese currency) has secured.

Asian markets have followed suit and plummeted to various levels. The victims of the latest upheaval are Shanghai Composite (8.35%), Japan’s Nikkei (3.10%), Hong Kong’s Hang Seng (3.26%), India’ Nifty (3.22%), and the US Dow Jones Industrial Average (3.12%).

The investors are worried and want to know,

  • “Is Asian economy facing the financial crisis that it faced 1990?”
  • “How the current crisis is going to affect Singapore economy?”
  • “Is the Financial Wizard of Asia going to give a slip to the crisis like it done to the collapse because of Subprime crisis?”

The current market trend is downward and the shares all over the world are in retreat. One of the most reliable indicators of the global demand, the Cooper, has also retreated to a value that is lowest in 6 years. Naturally, the circumstances are going to affect Singapore economy.

Singaporeans are going to vote on September 11, 2015, to elect a new government. In the post-Lee era, it will be a challenge for the new government to helm the current crisis and steer Singapore out of the reach of the financial storm.