1.0 Introduction
Located on an excellent location, Singapore’s major sea lanes and its productive population have given the country and economic value in Southeast Asia. After her independence, the economy faced decline due to her scarce natural resources. However, with the right implantation and policy, Singapore’s economy has seen rapid development, with a healthy growth of GDP.
Given her scarce natural resources due to its small area, Singapore’s competition advantage lies in her human capital. People in Singapore obtain higher education that is recognised all over the world and much needed as a skilled workforce, is one of the main factors for her economic growth as it attracts investors globally.
Over the years, the development of its …show more content…
This measure also help the labour market to stay healthy, it also aid the local businesses and it’s people to sustain the rise in cost.
3.0 Labour Market Analysis
3.1 Types of Unemployment
Frictional unemployment arises because people move between jobs. For example, fresh graduates will need time to find a suitable job for themselves. Many are unemployed for a short period of time. This type of unemployment is unavoidable in most countries, including Singapore. However, it can be reduced by providing sufficient and accurate information on jobs to ensure quicker and more efficient placement of people into job vacancies.
Structural unemployment happens when there is a change in requirement for a certain type of worker or skill. For example, technology advancement can cause structural unemployment as some workers might not equip with the relevant skills. This can be reduced by encouraging workers to constantly upgrade themselves.
Cyclical unemployment arises when the economy of the country is down. People are willing to work but are unable to find a job. For example, during a recession, people loss their job. These jobs lost are considered as cyclical …show more content…
4.2 Causes of inflation
The primary cause for the sharp increase in inflation was mainly due to the increase in housing and cars which accounted more than two-thirds of the inflation (Aaron Low, 2013).
4.3 Government Measure – Inflation
In order to contain rising living cost and help lower income group, since the GST increase to 7% in year 2007, the government have been introducing GST vouchers to help the lower income group cope.
To bring down the sharp increase of inflation in 2012 due to housing price hype, the government have also implemented fours rounds of property market cooling measures. Measures such as tightening ownership of property for investment, as well as foreigner buyers (Monetary Authority of Singapore, 2013). Loan curbs and additional buyer’s stamp duty have also been introduced as part of the cooling measures.
5.0 Conclusion
In general, Singapore’s economy has been healthy for a long time with the exception of occasion hits affected by different cause. However, the government is always ready to roll out measures to aid the people and economy tight through difficult times. The government is also always watching out the economy and people to ensure the growth of the economy and people is at a healthy
Located on an excellent location, Singapore’s major sea lanes and its productive population have given the country and economic value in Southeast Asia. After her independence, the economy faced decline due to her scarce natural resources. However, with the right implantation and policy, Singapore’s economy has seen rapid development, with a healthy growth of GDP.
Given her scarce natural resources due to its small area, Singapore’s competition advantage lies in her human capital. People in Singapore obtain higher education that is recognised all over the world and much needed as a skilled workforce, is one of the main factors for her economic growth as it attracts investors globally.
Over the years, the development of its …show more content…
This measure also help the labour market to stay healthy, it also aid the local businesses and it’s people to sustain the rise in cost.
3.0 Labour Market Analysis
3.1 Types of Unemployment
Frictional unemployment arises because people move between jobs. For example, fresh graduates will need time to find a suitable job for themselves. Many are unemployed for a short period of time. This type of unemployment is unavoidable in most countries, including Singapore. However, it can be reduced by providing sufficient and accurate information on jobs to ensure quicker and more efficient placement of people into job vacancies.
Structural unemployment happens when there is a change in requirement for a certain type of worker or skill. For example, technology advancement can cause structural unemployment as some workers might not equip with the relevant skills. This can be reduced by encouraging workers to constantly upgrade themselves.
Cyclical unemployment arises when the economy of the country is down. People are willing to work but are unable to find a job. For example, during a recession, people loss their job. These jobs lost are considered as cyclical …show more content…
4.2 Causes of inflation
The primary cause for the sharp increase in inflation was mainly due to the increase in housing and cars which accounted more than two-thirds of the inflation (Aaron Low, 2013).
4.3 Government Measure – Inflation
In order to contain rising living cost and help lower income group, since the GST increase to 7% in year 2007, the government have been introducing GST vouchers to help the lower income group cope.
To bring down the sharp increase of inflation in 2012 due to housing price hype, the government have also implemented fours rounds of property market cooling measures. Measures such as tightening ownership of property for investment, as well as foreigner buyers (Monetary Authority of Singapore, 2013). Loan curbs and additional buyer’s stamp duty have also been introduced as part of the cooling measures.
5.0 Conclusion
In general, Singapore’s economy has been healthy for a long time with the exception of occasion hits affected by different cause. However, the government is always ready to roll out measures to aid the people and economy tight through difficult times. The government is also always watching out the economy and people to ensure the growth of the economy and people is at a healthy