In Singapore, Job market in the skilled category seems to be saturated and matured. On the categories of semi-skilled and low- skilled the salary is respectively higher than other emerging markets. You may find citizens as taxi driver or shop keeper. They are very humble and appreciate tourists (according my narrow observations). Some points to note down: 1- It takes time!: The development strategy started long ago from 1970s therefore (1) - Economic Development takes time at least 30 to 40 years for a less than 10 million population economy. 2- Political Stability and good relation with neighbors: Let's not forget the role of developing and emerging economies close to Singapore: China, Malaysia, Indonesia and Thailand. 3- Localized Strategy and Support: They have found their own way of economics development and strategy matching to their culture and integrity. For example, you can find so many western brands of cafes, shops and retails however, vast majority of the population and tourists attracted in the Asian cuisine or Asian type of clothes. Take a look at this article on how a Korean App on Chat with mobile is capturing the market and make the market harder for its western allies (2). 4- Rationality in authorities decisions: There is a consistency and stability pattern in authorities decisions and policies. Except from the rule that is little bit annoying: Chewing gum is banned strictly in Singapore. Source: 1- Foreign Labor and Economic Development in Singapore Pang Eng Fong & Linda Lim National University of Singapore http://www.jstor.org/stable/2545368 2- http://www.ft.com/intl/cms/s/0/004a67e6-edf4-11e2-816e-00144feabdc0.html I can probably say that Singapore is a complete developed model of Dubai. The population is more or less the same. FDI stock is 5 times higher than UAE stands at 500 b$ Versus UAE around 85 b$ ending 2011. The credit rating is AAA. In 2012, GDP at current price stood at 345 billion $ (Singapore Dollar) which 222 billion $ of it is from Services Sector that includes (Whole sales & retail trade, Transport, Accommodation & food services, Information & communication, Finance, Business Services). Manufacturing compromise 86 billion $. It can clearly shown that major income of the economy comes from services. Not like UK, financial services, but mainly trade and tourism. A model as Dubai is following now. Which is a good strategy for countries with limited resource in manufacturing and agriculture. It has been shown by so many economists that "trade" in particular has so many spill over effects to the economies. As currently Dubai is planning for Expo2020, in case of winning the bid, there is a good chance for Emirate to pick up once again with help of trade. Source of Data - http://www.singstat.gov.sg Some of the complex issues in Economics have very simple basics which if someone wants to deeply understand them have to go back to basics. I came across Bic Mac index while i was researching on exchange rate theories. If you want to understand the basic root of exchange rate, it's better you go back to a time when there was good by good exchange. One of the very first theories which still in my opinion make sense in so many areas is the theory of purchasing power parity (ppp).
The long run exchange rate between two countries can be measured by the value of an identical basket of goods (e.g. Big Mac). According to Economist, as of July 2013, Bic Mac would cost 7.51$ in Norway and 6.72$ in Switzerland compared to its average price of 4.56$ in America. This means that the Norwegian currency (Krone) is 65% overvalued compared to U.S dollar. Which country has the most undervalued currency? South Africa and India. What this means? Perhaps (assuming floating exchange rates) the ingredients of Big Mac and cost of producing of Big Mac in South Africa or India is cheaper than cost of producing it in US itself. Source: Economist, July 13th-19th 2013 edition |
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