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Source: http://www.todayonline.com/singapore/singapore-still-2nd-most-competitive-economy-world-economic-forum

GENEVA — Singapore has retained its number two spot in the World Economic Forum’s Global Competitiveness Report, behind Switzerland and ahead of Finland, said the Geneva-based body yesterday (Sept 3).

Switzerland has kept its title as the world’s most competitive economy for the fifth year running, though it needs to resist any temptation to protect its core banking sector if it wants to stay top, the Forum added.

The Geneva-based body, most famous for gathering politicians and billionaires at an annual shindig in the Alpine resort of Davos, revealed that the same economies made the top 10 as last year, but in a different order.

Germany, the United States, Hong Kong and Japan all edged up while Sweden, the Netherlands and the United Kingdom all slipped by two or three notches.

The United States’ flair for innovation helped it reverse a four-year downward trend, although serious concerns remained over its macroeconomic stability, the Forum said, ranking it 117 out of 148 countries in that category.

The Forum bases its assessment on a dozen drivers of competitiveness, including institutions, infrastructure, health and education, market size and the macroeconomic environment.

The report also factors in a survey among business leaders, assessing the government’s efficiency and transparency.

Switzerland scored well across the board, but the report said it needed to guard against complacency.

“Its banking sector is ... Under scrutiny, and this traditional economic engine is necessarily undergoing great change,” the report said.

“In the future, it will be important for the country to continue to build on its competitive strengths and resist over regulation and protectionism,” it added.

Switzerland has been hit hard by a global crackdown on tax havens, succumbing to pressure from the EU and the United States to give up a centuries-old tradition of banking secrecy.

While most of the top 40 remained relatively static, South Korea slid six places to 25th, weakened by its poorly functioning financial market, quality of its institutions and extremely rigid labor market, said the report.

China remained in 29th place and again led the BRICS pack, while Indonesia climbed 12 places to 38th, helped by a 17-place jump in infrastructure and other advances.

“After years of neglect, Indonesia has been boosting infrastructure spending to upgrade roads, ports, water facilities, and power plants, and our results suggest that these improvements have started to bear fruit,” the report said.

It also made a big improvement in labor market efficiency, but was let down by bribery, security and a worsening health picture.

India slipped one position to 60th while Russia edged up three spots to 64th, helped by an improving macroeconomic environment.

There was also little change at the bottom of the list. The overall wooden spoon went to Chad, just behind Guinea and last year’s loser Burundi.

The report defines competitiveness as “the set of institutions, policies, and factors that determine the level of productivity of a country”. REUTERS

Guide Questions:

1) Based on the article above, what implications does competitiveness have to the economy of Singapore's individual households and firms? Support your answer by giving specific and concrete example, justtifications and arguments

2) What will happen to the development of the economies of Singapore and Vietnam should competitiveness persist? Explain your answer fully and support your arguments

3) Based on the article, what is the role of the government in the economy of a nation like Singapore? Justify your answer

FORMAT:

The report shoule be documented in a professional format, with appropriate charts included to illustrate the calculations and comments. Each table and/ or key fact should have the source indicated so that the reader can access the reliability and validity of that information

LENGTH: 1500 words, not including executive summary, referencing,tables and figures, and appendices.

ASSESSMENT CRITERIA:

At least 5 references to external sources , the usage of the APA referencing system is compulsory.

FORMAT AND STRUCTURE:

- Cover page, content page (exclude from word count)

- Executive summary (exclude from word count)

- Introduction page, Body, Conclusion

- Critique of the risk associated, application of theory, clear logic and reasoning

- Reference list (exclude from word count)

David · Accepted Answer

1 

Singapore Economy 
The assessment and its implications
Student Name 
XXXX
2 
 
Table of contents 
Executive summary…………………………………………………………………………3 
Introduction…………………………………………………………………………………3 
Implications of competitiveness…………………………………………………………….4 
Asian economies: competitive assessment………………………………………………….5 
Conclusion………………………………………………………………………………….6 
Reference links……………………………………………………………………………..7
3 
 
Executive summary 
Singapore is one of the most attractive business destinations today. Not only it provides a 
conducive business environment, but has also developed its infrastructure so well that it 
attracts a lot of tourists in the country. It has become one of the major tourist attractions 
globally as well. The country has seen tremendous growth in the recent past.  It has evolved 
as the business hub in Asian markets. This has all been possible by the country’s prudent 
macroeconomic policies and legal framework. They have been distributing benefits not only 
to businesses but passing on these benefits to the common people of the country. Overall, the 
prosperity of the country is largely driven by the business environment it fosters which is 
because of its increasingly competitive positioning among the global economies.  
Introduction:  
Singapore is one of the most robust economies of Asia as well as the world. In the 2011 
rankings for World Bank Ease of Doing Business Index, Singapore was rated as the best 
country for doing business all over the world, ahead of countries such as Hong Kong and 
New Zealand. Singapore is a mixed economy, which on one hand encourages free market 
policies and practices and on the other hand has government intervenes for management of 
resources such as labour, land and other capital resources. This model – known as the 
Singapore Model or “Singapore Inc.” – is known to be highly successful and innovative.  
Through its strong credentials, the country has established itself as one of the favourite hubs 
for investors to conduct businesses or set up new businesses.  
Singapore had to open its economy for external players so that economy could sustain more 
so because it’s domestic market is relatively small.  Some of the characteristics of 
Singapore’s economy are as follows: 
- The country’s petroleum and petrochemicals industry is one of the largest in the 
world. Another major sector in the country is manufacturing, with a past record of 
specialization in electronics and digital devices manufacturing. However, the country 
is now trying to diversify into other forms of manufacturing, such as pharmaceuticals, 
as a result of encouraging government policies for other sectors. Thirdly, Singapore is 
strongly positioned in services, particularly financial services. It has one of the 
strongest banking systems in the world. In addition, it also has one of the best stock 
exchanges in the world. 
4 
 
- It has one of the lowest rates of unemployment in the world, with majority of the 
labour force being highly skilled and well educated.  
- In Singapore, a large majority of trade is conducted to meet the domestic demand for 
necessary products such as food and energy. Approximately 47% of products are re-
exported in the country. 
Implications of competitiveness  
In the recent World Economic Forum’s Global Competitiveness Report released in 
September 2013, Singapore was declared the second most competitive nation, behind 
Switzerland and ahead of Finland. The assessment by the Forum was based on various 
parameters which drive competitiveness such as infrastructure of the country, health and 
education, size of the market and other factors that make up the macroeconomic environment. 
In addition, the assessment also considers the survey results from business leaders which 
discuss the efficiency and transparency of the government. In a nut shell, the 12 pillars of 
assessment were:  Institutions; Macroeconomic Environment; Infrastructure; Health and 
Primary Education; Business Sophistication; Goods Market Efficiency;

Source: http://www.todayonline.com/singapore/singapore-still-2nd-most-competitive-economy-world-economic-forum GENEVA — Singapore has retained its number two spot in the World Economic Forum’s Global...

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