Outlook

Singapore’s government tackles economic challenges as well as the increasing competition from China and India with investments in education and research, the funding of knowledge-based industries and intensified investments abroad. In an early stage of its economic development, the lion city specialised in niche segments with high value-add to stay competitive to low cost countries. In 2010 the expenses for research and development shall amount to 3% of the GDP to meet the goal to establish Singapore as the “Research and Education Hub”. 

With the building of two “Integrated Resorts” in Marina Bay (5 bn SGD) and on Sentosa Island (5.2 bn SGD) a major redevelopment takes place in the city. The resorts are to be opened at the end of 2009 and in 2010, respectively. Another large-scale project, the “National Stadium”, sets up a sports and leisure centre which shall attract international major events. In 2008 the first Formula 1 night race took place in Singapore as well. Within its goal to become a mega city with more than 6 million inhabitants, the public transport system is expanded with additional lines.

Nevertheless Singapore was hit badly by the economic downturn and negative growth of up to 5 per cent is expected by the government. However, measures were taken up to fight the recession, for instance by supporting the issuance of credits as well as fighting major retrenchments.

31.03.2009