AQ - Features of SG

AQ – Features of Singapore Society “I am accused often enough of interfering in the private lives of citizens. If I did not, had I not done that, we wouldn’t be here today” – Lee Kuan Yew ( National Day Rally in 1986) Note: This list is non-exhaustive; you should update your notes with the latest developments and issues featured in Singapore news. Only use relevant issues / illustrations and policies in your response when they relate directly to the points you have identified from the passages. Descriptors Relevant illustrations / policies Economy - Singapore’s economic prospects are tied to the availability of a highly-skilled workforce given our scarce natural resources. - this has led to a reliance on foreign talent, as well as low- skilled migrants. - At the same time, it necessitates an emphasis on developing human capital (link to education / meritocracy) and the need for constant upskilling and innovation. - there is a reliance on trade / open markets (Singapore has a free-market economy with minimal trade barriers, making it one of the most open economies in the world). - business friendly regulatory environment (low tax rates) and a highly attractive investment climate, which has resulted in large inflows of FDI from global investors and MNCs over the years. - highly developed and diversified economy - state capitalism (the government plays a significant role through sovereign wealth funds like Temasek Holdings and the Government of Singapore Investment Corporation (GIC). These entities hold majority stakes in several of the nation’s largest companies, such as SIA, Singtel, and ST - Engineering. - Singapore is one of the leading financial centers globally, with a robust banking sector, active stock exchange (SGX), and a wide range of financial services. The economy is highly diversified, with key sectors including manufacturing (particularly electronics, pharmaceuticals, and chemicals), financial services, information technology, trade, and logistics. - The Asia-Pacific Economic Cooperation (APEC) is headquartered in Singapore. - Singapore offers one of the most competitive corporate tax regimes in the world, with a headline rate of 17%. There are also various tax incentives for businesses in key sectors, such as manufacturing, finance, and biotechnology. Singapore ranks consistently high in the World Bank’s Ease of Doing Business Index. The country has streamlined procedures for starting a business, often allowing companies to be registered within a day. The government provides various grants and incentives to support businesses, particularly in innovation and productivity. For example, the Productivity and Innovation Credit (PIC) scheme offers tax deductions or cash payouts for businesses that invest in activities like R&D, automation, and employee training.

- fosters innovation and the adoption of technological solutions (Singapore invests heavily in R&D, particu