Singapore Turns to Services
Published By : 19 Feb 2015 | Published By : QYRESEARCH
Singapore is among the most highly affluent and developed countries in the Asia, with GDPs in the tiny city state rivaling those of the most developed and richest Western countries. Singapore owes this development to its historical importance as a crucial port city in British times, facilitating trade between British colonies in India and Africa, and Eastern Asian colonies that lay beyond. The economic development has continued into modern times, with Singapore becoming one of the most advanced countries in the world, with top-quality infrastructure and several business avenues.
This is the historical background on which Singapore is banking to recover from a drop in demand for goods manufactured in the city state. The global recovery from the recession at the end of the last decade has been largely uneven, with no uniform pattern of recovery emerging. This has given a boost to Singapore’s services sector, which has increased to claim a 27% share in Singapore’s total GDP, as opposed to 20% of the total in 2005, 3 years before the recession.
Ow Phoong Feng, permanent secretary of Singapore’s Ministry of Trade and Industry, admitted as to the growing importance of the services sector in the minds of Singapore’s administration. The rising share of services has resulted in the government releasing data related to the services sector on a quarterly basis.
The share is expected to be kept afloat by the increasing middle class demographic in Southeast Asia or even Asia Pacific. The increasing affluence in Singapore’s main target region will help the city state’s services sector grow in this decade and in the initial part of the next one as well.
This indicates that Singapore has retained its historical position as a nexus of trade, only with a different set of mercantile goods.