Singapore Economic Success: Financial Development and Responsiveness

By Ashutosh Jha → Last Updated on Thursday, February 13, 2020
The Republic of Singapore is an Asian sovereign city-state with a territory that includes one main island and 58 islets. It has a distinct independence history, obtaining its self-governance from the British Empire in 1959.

To date, Singapore has more than 5 million human population, consisting of permanent residents and foreign nationals.

Aside from the rich culture and ethnicity, Singapore prospers in the global network as well, wherein it influences a great deal in the Asian economy. It is a highly developed country, and one of the most expensive cities to reside in for the past several years.

The economy of Singapore is at the top of the most dynamic, liberating, developmental, and business-oriented in the world. And these are attributed to the economic sectors where it excels, including foreign exchange, casino gambling, trading, and financial services such as the Xero Accounting Singapore.

There are many aspects why Singapore is called the 20th century, the most successful development story. Some of those aspects we have discussed below-

The Reform

Singapore is almost having no natural resources but still the way they have developed is commendable. The professor at University of Michigan, Linda Lim says, I have not seen any other country developing rapidly as Singapore has done maintaining the peace, satisfaction, and life expectancy.

And all the credit goes to one man- Late Lee Kuan Yew, the creator of modern-day Singapore and former prime minister. Due to this contribution, the Asian edition of the Time Magazine featured him saying the founding father of Singapore.

Over the period, the country has established itself as the major manufacturing and financial hub. Once the late conservative economist Milton Friedman said, Singapore is an example of how the development is done right.

The world sees Singapore as a free trade, low taxes, and an ideal country to do business in. It’s pretty famous in the entrepreneurs' community to register their company in Singapore.

Josh Kurlantzick of the Council on Foreign Relations talks with pride- how you can start your own company in Singapore in three hours.

It’s not only that Singapore only worked on economic development but also on social development and peace. Especially the sectors like Healthcare and housing saw major development and is one of the reasons for social peace in Singapore.

The people who have seen Singapore growing says, the leaders of Singapore understood this very early that Singapore is a place of diverse culture. And so the laws have been created accordingly including the labour law. Which created a peaceful, stable, and ideal environment for what the multinational companies were looking for.

Infrastructure

As I have discussed above, despite having a very limited source of natural resources, Singapore has developed in a way it has set an example.

As we talked above also, housing is one of the reasons why Singapore is so stable socially. If you see any image of Singapore, the first thing that admires the world is the infrastructure. By land, Singapore is served by 9,310 kilometers of paved roads, 199.6 kilometers of rail. Remember Singapore has a land area smaller than even NewYork.

By air also, their major airport Changi is connected to 380 cities in 90+ countries. The airport handles more than 7000 weekly flights that have both passenger and cargo.
Apart from land and air, Singapore also has a massive transportation system in water. It gives around 200 shipping lines with access to 600+ ports in 123 countries. At a time, Singapore dock can park 1000 ships and is one of the busiest ports in the world.


The Financial Sector

Singapore consists of over a thousand financial organizations that provide a variety of products and services across different classifications. The Singaporean financial market offers banking services such as investment and money management, insurance services, and many more.

And all of the financial institutions in the country are known for their competent regulatory development, outstanding infrastructure, and expert pool of technical staff.

With the financial capability of Singapore, more foreign banks are choosing it as their headquarters for their global banking services. Its time zone is also well-suited for trades, which brought the country to the top of the worldwide foreign exchange market, evident on the foreign exchange turnover of more than 400 billion USD in 2016 on the average daily volume.

The country also serves as a hub for services like wealth management, treasury investments, Xero accounting Singapore, and risk management needs throughout Asia.

The economic-financial success of Singapore would not be possible without the operational responsiveness of the financial regulatory authority and the central bank of the country called the Monetary Authority of Singapore (MAS).

With the supervision of the statutory board established by MAS, all the services in the Singaporean financial sectors function in alignment with the set frameworks, methods, guidelines, and instructions on matters regarding operations.

The Challenges

The digital advancement of the modern world has affected the delivery of products and services to clients. The financial landscape has created challenges in the modified social and political states as well as the accelerated pace of development that the global financial industry needs to navigate.

In response, the Singaporean board for finances has developed a system of bringing start-up companies, technology experts, and finance players into the picture.

They have innovated the regulatory condition of banking and finance, trained tech-savvy professionals, developed a solid financial foundation through services like Xero accounting in Singapore, designed safe and efficient data storage functions, and promoted the use of technological platforms and application programs for financial management.

With the digital revolution, the need for a developing pool of talent is also a challenge. The digital era rises to a whole lot of complexity and sophistication on the consumers’ end.

And to address the concern, the Singaporean government established a financial sector committee to unite authorities, industries, and the labour movement that are significant in fostering a financial sector workforce that adapts to changing needs and seeks new opportunities along the way.

Singapore has made efforts as well in encouraging continuous professional training of finance professionals in the country.

Post Tags:

Ashutosh Jha

Ashutosh Jha is a professional blogger, Blog and IT Consultant. He writes about Blogging, SEO, Making Money, Internet Marketing and Web Design.
If you liked the post, You can follow him on the below social media.

Website: TricksRoad

No Comment to " Singapore Economic Success: Financial Development and Responsiveness "

Please make your real thoughts/comments and don't spam. Spam comments will be removed immediately.