Singapore's economic system is that of a greatly developed and successful free-market economy. There is hardly any corruption with its open trading system. Prices are stable, with a GDP per capita that is higher than a majority of developed countries.
The economy of Singapore is a highly developed free-market economy. Singapore's economy has been ranked as the most open in the world, 3rd least corrupt, most pro-business, with low tax rates (14.2% of Gross Domestic Product, GDP) and has the third highest per-capita GDP in the world in terms of Purchasing Power Parity (PPP).
Learn more about the Singapore economy, including the population of Singapore, GDP, facts, trade, business, inflation and other data and analysis on its economy from the Index of Economic Freedom ...
However, every system has its drawback. In Singapore’s political system, the major point of criticism is that there is practically no balance of power between the opposition and the ruling party. Another negative aspect of the system is the there is no freedom of press and death penalty is perceived as a downside by many.
Singapore’s economy is one of the most open, and thus competitive, markets in the world. According to the 2011 World Bank Ease of Doing Business Index, Singapore is ranked first in the world for doing business – ahead of Hong Kong and New Zealand. Singapore is also ranked third in the World Economic Forum’s Global Competitiveness Report behind Switzerland and Sweden.
What kind of economic system does Singapore have? The island nation of Singapore has a market-based or capitalist mixed economy. What kind of economic system does Philippines have?
Of equal importance to Singapore's economic achievement is a set of sound macroeconomic policies aimed at maintaining a conducive environment for long-term investment in the economy. Fiscal policy is directed primarily at promoting long-term economic growth, rather than cyclical changes or distributing income.
In contrast to their neighbors, where political and economic climates were unpredictable, Singapore on the other hand, was very predictable and stable. Moreover, with its advantageous relative location and established port system, Singapore was an ideal place to manufacture out of.
Singapore has had to cope with increasing competition from regional emerging markets and the demographic challenge of an aging society. Above all, its reliance on exports has proved to be a burden in times of global economic uncertainty. Both in 2001 and 2009, the economy of Singapore contracted by 1-2% after the worldwide financial crisis.
Singapore is a member of the Regional Comprehensive Economic Partnership negotiations with the nine other ASEAN members plus Australia, China, India, Japan, South Korea, and New Zealand. In 2015, Singapore formed, with the other ASEAN members, the ASEAN Economic Community.