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4.48 million as estimated by 2005 census. It is a multiracial city state with a majority
population of Chinese with substantial Malay and Tamil Indian minorities.
The country is a parliamentary republic where a Prime Minister is the head of the
government. It has a multiparty system and an independent judiciary. Since its
inception, Singapore has been lead by People’s Action Party (PAP). Government
bureaucracy is managed by national Civil Service. A hallmark of good governance by
PAP has been relentless focus on service to the various constituencies and an uncorrupt
bureaucracy. This has spanned into a large bureaucracy organized to serve individual
constituencies within business community and citizenry at large. The Civil Service seeks
to attract the best and brightest in the country to serve the public at a salary benchmarked
with the private sector. Leadership is required to clearly enunciate the agenda and
measure outcomes as they believe appropriate. In terms of accountability, any criticism
of the bureaucracy, particularly in media, is vigorously defended. Leadership in civil
service is regularly rotated to infuse new blood and prevent possible encroachment of
corruption as a result of longevity of leadership in a decision making position. The Wall
Street Journal and The Heritage Foundation, Washington’s preeminent think tank, have
for over a decade tracked the march of economic freedom around the world with their
influential Index of Economic Freedom. Singapore ranks 5th out of 158 countries in their
Corruption Perceptions Index for 2005.
Relationship with Business
Singapore Government is generally considered to be pro-business, in a unique
partnership with them. One senior Civil servant has gone so far as to describe business as
government’s “customer.” Following the recommendations of the United Nation’s
Development Committee, in 1961 the Ministry of Trade and Industry (MITI) established
the Economic Development Board (EBD) to foster economic growth in the country. It
has served as “one stop shop” for international investors. EBD has been very successful
in its mission. Singapore is home to 3,000 multinational corporations (MNCs) from the
United States, Japan, and Europe engaged in almost all sectors of the economy. They
account for more than two-thirds of manufacturing output and direct export sales,
although certain services sectors remain dominated by government-linked corporations.
Despite its small size, Singapore is now the tenth-largest trading partner of the United
States.
Rewards of Government’s pro-business policies have been spectacular. Although
Singapore’s economy is small by global standards, it is a relatively rich country. In 2006,
Singapore’s GDP was US$141 billion with a per capita GNP of US $31,400. The per
capita GDP of the tiny island nation equals that of the four largest European countries
and is five times that of its nearest neighbor, Malaysia. Singapore’s economy grew at the
7.9% in 2006. In the face of increasing global competition, Singapore continues to build
on its core advantages--a good geographical location, developed infrastructure, a good
communications system, political stability and a disciplined workforce--while always
looking to develop new economic strengths.
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