StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Singapore Model - Essay Example

Cite this document
Summary
This essay describes Singapore operates through a trade-focused market economy in which the locals can freely work in any market segment and economic sectors. This arises because of the low tax rates, high per-capita and the least corruption cases experienced in government institutions…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.2% of users find it useful
Singapore Model
Read Text Preview

Extract of sample "Singapore Model"

Question 3: Singapore Model Introduction Singapore operates through a trade-focused market economy in which the locals can freely work in any market segment and economic sectors. This arises because of the low tax rates, high per-capita and the least corruption cases experienced in government institutions. In this regard, the government controls the vital economic sectors without interfering with the individual traders. The Singaporean government controls and organizes the production means of the various sectors, such as capital addition, wage employment and centralized management. Although private traders own some of the production means, the state still enjoys considerable control over the credit distribution and investment facilities. Singapore’s State Capitalism Singapore’s description of state capitalism is that the government has controlling shares in various public corporations and issue funding through the sovereign wealth fund (SWF). The SWF is state-owned capital funds used for real and financial asset investments in stocks, bonds or other alternative ventures. The funds are applied universally from export revenues or foreign exchange reserves in the custody of the central bank (Tajuddin 52). Considering this, Singapore attracts multinational organizations to take the global SWF benefits. The country also imposes business friendly regulations that favor the establishment of multinational organizations. The Singapore’s capitalism Model incorporates the private and public-owned companies towards an overall contribution to the economy (Tajuddin 54). The availability of the SWF has enhanced domestic investment in which the local industries are capable of manufacturing large-scale production. As a result, the state-owned companies transform into global enterprises that serve other regions with quality products. It is apparent that the SWF contribute to government social spending without raising taxes because they represent the budgetary surplus owned by the central bank. Similarly, the SWF does not have international debts accrued from government borrowing (Tajuddin 57). The country creates SWF in order to boost economic activities inspired to promote the state-owned enterprises. Singapore depends on services and manufacturing exports, with little government interference. The country does not adopt the other Asian’s philosophy of state socialism that has failed in China and India among others. The mainstream public-owned companies derive their successes through international presence, but not due to access to cheaper bank credit facilities. My opinion on the Singapore’s state capitalism is that it exposes some challenges that might affect the development of small-scale businesses (Musacchio and Sérgio 65). The government mostly focuses on the expansion and setting up of its enterprises that can compete in international forums. The SWF attracts large companies that can invest in stocks, bonds or hedge funds and this is not favoring the entrepreneurs. I think it would be essential to assist the entrepreneurs to play a part in the economic development of Singapore. Although the state-owned companies help in the job creation across the country, this inhibits creativity and sharing of ideas among the entrepreneurs. The Singapore’s legal procedures are also attractive to foreign companies that are free to set up their production bases within the country. This trend kills the growth of privately owned establishments that do not enjoy government support. As a result, the Singapore Model is numerous benefits of the country’s economic development, but does not help in innovation and entrepreneurship (Musacchio and Sérgio 65). Ways that the Country can Deal with Corruption Corruption normally comes up in state-owned institutions because of bureaucracy created by the state officials. However, the Singaporean government can deal with the corruption cases by setting up regulations and models that monitor the wealth accumulation tendencies of the officials, which involves the adoption of smart technology (Harris 23). One of the ways the government has been able deal with corruption is the wage rate reforms that reward the state officials. This implies that the civil servants receive decent remunerations that can sustain their families and various requirements. It is also apparent that the imposing of taxation laws encourages savings among the civil officials and this prevents lavish spending and self-fish interests. Singaporean government also copes with corruptions through effective leadership that provides opportunities to the citizens to venture into different economic sectors. The auditing procedures conducted on the state-owned and foreign investments reduce corruption in it leads to imprisonment. The other way that the Singapore government uses to deal with corruption is by creating transparency and fairness in their spending (Harris 36). For instance, the introduction of the SWF is a transparent model that enables the citizens to understand where the government spends surplus finances in the budgets. The public procurement of products and the control of the state resources ensure that the government involves the citizens in investment decision-making. The establishment of international conventions that bring together the foreign and local investors facilitates the creation of a formal framework for conducting global business (Harris 42). Improving Administrative Effectiveness The success of Singapore’s State capitalism depends on administrative effectiveness undertaken by the government agents. For instance, the government can ensure that the regulations support the establishment of private industries. In order to improve the administrative effectiveness, the Singaporean government can hire attachés who understand the dynamics of international trade. The employment of the attachés helps in ensuring that the state-owned firms produce customized products for the foreign markets (Tajuddin 69). They also collect information about the management of the foreign firms for favorable administrative practices. Administrative effectiveness reduces misuse of resources and corruption cases, which hinders maximization of revenues. The improvement of administrative effectiveness also involves hiring of competent managers who understand cultural variations. This is because Singapore attracts employees and investors from various parts of the country with diverse cultural inclinations. The country can also improve its administrative effectiveness by introducing business-tailored courses for the supply of qualified employees. Considering this, Singapore offers sponsorship benefits to deserving students to enable them acquire new skills in overseas institutions (Tajuddin 69). The enactment of economic policies also facilitates transparency among the employees who must protect government resources. The regulations impose severe punitive actions of state officials who misuse resources or engage in fraudulent activities. The improvement of administrative effectiveness takes place at all levels of the trading transactions, such that everyone performs to develop their careers. The other way that the Singaporean government can adopt to improve administrative effectiveness is by encouraging openness in production. This eliminates the bureaucracy and the production of fake commodities that might flood the markets due to dumping of low quality products. Works Cited Harris, Godfrey. Corruption: How to Deal with Its Impact on Business and Society. Los Angeles, CA: Americas Group, 2003. Print. Musacchio, Farias A, and Sérgio G. Lazzarini. Reinventing State Capitalism: Leviathan in Business, Brazil and Beyond, 2014. Print. Tajuddin, Azlan A. Malaysia and Singapore in the World Economy: State, Capitalism, and Authoritarianism, 2002. Print. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Singapore Model Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Singapore Model Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/management/1700905-singapore-model
(Singapore Model Essay Example | Topics and Well Written Essays - 1000 Words)
Singapore Model Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/management/1700905-singapore-model.
“Singapore Model Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/management/1700905-singapore-model.
  • Cited: 0 times

CHECK THESE SAMPLES OF Singapore Model

Comparison of the Economic Environment between Singapore and Argentina

Name of Professor Qualitative Analysis Comparison of the Economic Environment between singapore and Argentina singapore is one of the nations in the world with a well established and efficient free-market economy.... hellip; The government of singapore has a significant control in most corporations, which constitutes about 60% of the GDP through business entities like Sovereign Wealth Fund (Temasek, Huff 751).... Compared to other developed countries singapore has low tax rates with a very high per capita GDP globally....
6 Pages (1500 words) Essay

Medical Serices Account in Singapore

This paper makes a conclusion that the overall aim of cost reduction and control of medical expenses inflation has not been apparently achieved in singapore.... This paper attempts to highlight salient features of the Medical Savings Account policy adopted by many countries and bring out various advantages and disadvantages of MSA for an individual, employers and governments to choose best possible medical care option for meeting individual requirements....
11 Pages (2750 words) Essay

Military attack strategies in Singapore

The state then adopted “the Israeli model of a national conscript defense” (Singh 16).... The author of this paper "Military Attack Strategies in singapore" aims to analyze how does singapore's government managing to secure the country from any external threats by developing an internal military system with its own attack strategies.... hellip; It is astonishing to know how a small country like singapore has built up a strong military force since its independence on August 9, 1965....
5 Pages (1250 words) Essay

The Statement of Policy and Authority

Dye (1992) has offered the simplest definition, arguing that policy is “whatever governments opt to do or not to do” (as cited in Eisner,… 4).... From this, two points may be formed: first, Dye is concerned about public policy, thereby ignoring the fact that other institutions make policy too....
9 Pages (2250 words) Essay

The Singapore's Economic Model

This essay "The Singapore's Economic model" is focused on the history and economic situation of Singapore.... It is stated that at a time when singapore gained independence, it was a poor and a small country, which had to import even building sand and fresh water.... nbsp;… Countries neighboring with singapore were set unfriendly.... While singapore cannot take a certain place in the international market such as Hong Kong, which relied on the support of the Bank of England....
4 Pages (1000 words) Essay

My Impression about Singapore

The author tells about his/her trip to singapore, as part of the Study Abroad program organized by his/her school, was the first time the author had visited South East Asia.... His/her perceptions about singapore were limited to the little information from reading newspapers and news media agencies.... Amongst other things I learned was that singapore was rated as having one of the worlds' best air and shipping hubs in the world.... One week in singapore was not really enough to validate my perception but enough to build my personal impression of the country....
10 Pages (2500 words) Essay

The Experiential Educational Approach in Australia versus Thinking-On-Your-Feet Model in Singapore

… The paper “The Experiential Educational Approach in Australia versus Thinking-On-Your-Feet model in Singapore" is a meaningful example of term paper on education.... A specific strategy being adopted within the experiential model is the “thinking-on-your-feet” approach.... The model is more popularly known as the Whole-class method, which is characterized by a didactic lecture, wherein the lecturer is the focus of the entire class activity, only requiring students to absorb knowledge, skills, and theories in instructions that are peppered with presentations and recitations....
3 Pages (750 words) Essay

Impact of E-Commerce and E-Business on Retail Industry of Singapore

This paper “Impact of E-Commerce and E-Business on Retail Industry of singapore” states that due to certain negligence, the small and medium retail industry cannot introduce web-based technologies in their daily business activities like supply chain, inventory management, internet selling etc.... More specifically, this paper will focus on the use of e-commerce and e-business in the retail industry of singapore.... The primary objective of this is to evaluate the impact of e-commerce and e-business to support the retail industry of singapore and to provide a set of plausible recommendations....
9 Pages (2250 words) Research Proposal
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us