Economy of Singapore

Being located in a key corner of Asia, Singapore has geographical advantages as well as a rapidly developing economy. Singapore has proven to be an example to surrounding countries for taking advantage of opportunity and location. It has attached its economy to quickly growing and developing industries as well as using their geographical advantage to retain its trade and shipping advantages. With lack of space in this small country it has moved past its limitations and used the authoritarian ways of its strict government and large workforce to make itself an example throughout the world.

Singapore has had the great fortune to be one of the world's busiest ports. Their own lack of raw materials has yet to keep them in a hold on economic growth in their own industrial endeavors. They have utilized their location throughout and even to this day they are responsible for a majority of the crude oil being refined and shipped out to Asian destinations. They process rubber and send it to the United States; rice, spices, timber are sent through their ports and distributed throughout the world. These trading patterns are a basis of how this economy started and was a basis for its transition in the world economy. Singapore has moved into the mentality that nothing will stop them from becoming a Mecca of economic growth and wealth along with expanding their workforce's capabilities. Being a small island would prove to create a hindrance for future development and growth for industry. However, the government has solved many of these problems by leasing the small islands of Batam and Bintan just off the coast of Indonesia as well as others to produce industrial parks.

Along with finding ways to spread industry by leasing islands, this economy has now utilized high technology industry as well as service industries to save space and theoretically expand. Singapore today is advanced in international banking and finance as well as communications, and tourism. Particularly important areas of major growth include: information technology, automation, and biotechnology. The presence of this authoritarian government has played a major role in developing this city-state into a destination for these types of businesses. They have invested billions of dollars in grants in the biotechnology arena in order to draw the world's intellectuals to this island. The government's very hands on approach to businesses as well as everyday life of its population have shown the naysayers that this economic model has the ability to work and work rapidly. The gross national income of Singapore has reached that of the United States while neighboring Malaysia is still very far behind. It is important to note that the economic status of Singapore is believed to be strongly influenced by the idea of a growth triangle including its neighbors in Indonesia and Malaysia. While these countries supply the cheaper labor and raw material, Singapore