In the past years, there has been an increase in the economic growth and development of Asian continent economy. Consequently, there has been both a tremendous and steady expansion in the economies of not only Singapore but also Korea, Taiwan, and Hong Kong. All the economic planners of the government regarding economic prosperity, more so in Central and Latin America, Eastern Europe, Africa, and some areas of Asia, focus so much on the development ways used in the four Tigers mentioned, hoping to learn from their doings.
For Singapore to propel her economic development, she had invested close to S$ 1.9 billion from 1990 to 1996. The investment was made through the National Computer Board (NCB) which she formed to get improved training and knowledge of those in the industries linked to IT. Additionally, Singapore committed another S$ 3 billion starting from 1995 to 2001. The best technology centers were formed such as the National Singapore University, the school of Science Systems, and some tertiary institutions were responsible for the clustering of advanced technology facilities that spearheaded Singapore’s economic development. In the undertaking of this assignment, the discuss seeks to provide some of major the factors that have enabled Singapore to achieve a high level of economic development, and this form the thesis statement for this paper.
First, following the establishment of effective technological institutions, to achieve a high level of economic development, in the 1989s, Singapore increased her manufacturing and financial operations. Singapore operated as the primary financial midpoint and hub of the Asian economic cycle regarding the productions of goods. The Riau and Johor places offered the labor required force for the processes of manufacturing. The situation was great since most of the neighboring areas were still suffering from low wage assistants with fewer skills, and this was a problem that Singapore managed so well. In 1989, a strategy for the formation of a financial collaboration amidst Malaysia, Indonesia, including Singapore was first stated. The financial collaboration acted as a springboard that facilitated Singapore’s economic growth.
Second, the SIJORI initiative began just in the first 1991s, headed by the (EDB) Economic Development Board of Singapore. Its main people were from Riau area of Indonesia, Singapore, and Malaysia. In this context, Singapore could profit from the local support since both provinces provided it with the most needed raw materials, workforce, and space. To keep Singapore good looking in the presence of new investors, EDB persisted in reviewing its tax incentive structure. The inventor condition was agreed upon in 1969, increasing the tax respite to a permanent year time. The tax reprieve attracted many investors to Singapore consequently enabling it to achieve high economic development.
As time passed, the scheme was as far as supporting Singapore’s’ small firms for manufacturing. Moreover, the scheme resulted in the creation of profits to institutions who offer services to the existing businesses. Besides working from side to side with the provision of tax collection, the government looked forward to providing other supporting institutions. The same law ruled over savings in places with no private skilled people. Many approved companies emerged in the transportation and economy sectors. The Companies took care of establishment of budgetary services and ongoing of substantial progress and non-physical procedure promoted economic growth in Singapore.
Third and finally, the law of Singapore noticed the condition of labor in the area, focused on offering a safe working environment that could bring new investors closer. With the help of Labor Act, issues between employers and the employee would be solved, and disagreements prevented. In 1971, National Trade Union Congress was formed by law as the only whole county labor combination to supervise wage issues and employment. The facilitation of the employment processes and wage issues fueled economic growth in Singapore.