Saturday, March 30, 2019
Development of Singapores Economy
Development of capital of capital of capital of capital of capital of Singapores EconomyIntroductionIn the past three decades make witnessed Singapores economy has been developing at an extremely tall-pitched speed. As the most important part of the political economy, bank buildinging and finance services open a lot to the gross domestic product. The government inventory (Banking and finance, 2007) exhibit that the Banking and Finance provides a description of the complex nature of the domain and an overview of the sectors provision of products and services, which ar (1) deposit, consumer credit, and payment systems (2) credit and liquidity products (3) investing products and (4) risk-transfer products (including insurance). Banking and finance services sectors play an important role in the Singapore economics, in 2013, the pecuniary effort contri exactlyed around 12% to Singapores gross domestic product (Singaporean- German Chamber of industry and commerce, 2014.). And S ingapore isnt an modify and agricultural country, it depends on the tourism and financial business, therefore the Singapore crowd outnot abdicate Banking and finance services sectors.Contri notwithstandingionGDP stands for gross domestic product, which is apply to measure a country economics, it includes everything produced by all the people and companies that are in the country. Singapore has enjoyed robust economic product with an average growth rate of 6.1% since 2000 and a GDP per capita of S$65,048 (US$52,051) in 2012, champion of the highest in the world. This strong economic performance is driven by 4 severalize sectors, namely Manufacturing, Wholesale Retail Trade, Business Services and Finance Insurance. These 4 key sectors collectively contributed to more(prenominal) than than 64% of Singapores GDP in 2012 (Meng Kit, 2014).Nowadays, Singapore has hundreds of banking and finance companies, and most of them are foreign. Beca implement Singapore geographical cond ition and social status, more and more corporation set up a branch guild in Singapore, for example, Huawei, HSBC and Citibank, etc. In the plow (Anonymous, 2014) according to City think-tank Z/Yens Global monetary Services, both are challenging the leaders as the top world(prenominal) finance hubs, with Hong Kong in third place behind London and new-sp onslaughtg(prenominal) York, and Singapore only eight points behind in fourth.When they set a attach to in Singapore, they direct to recruit the beat of the best employees to their participation, in the other worlds they create a lot of job opportunity. It solves the problem of employment, and thats why Singapores unemployment rate so low. The Manpower look for Statistics Department (2015) shows that Singapores unemployment rates in 2012 to 2014 are 2.0%, 1.9% and 2.0%. Those salute Singapore job market are not too much unemployed people, its beneficial to maintain social stability and growing.ChallengesWith the develop ment of the economics, antithetical issues and problems will emerge in the market such as 1997 Asian economics crisis and 2007 American Subprime mortgage crisis. People cannot predicate these economics crises, they just can try their best to decrease economics crises disablement to the economy and revive the economics as soon as possible. The akin as the banking and finance services sectors, these sectors will be the first industry affected. In that period of time, umpteen people was fired by the company so that the company can save more money and especially, Singapore stock market also affected by the economics crises, many companies and investors passing money.Inmoderntimes, everyone get a smartphone and people use Internet to communicate, but its very dangerous when you use Internet to transfer document or money. They dont need to go to rob the bank to get money or even know the details of the targets they can get everything through the Internet. The chewer can hack the Inte rnet and tally all the information in your account, and after that they will steal or sell your information to the market. The report said that (Jones, 2013), the police conservatively count on that the group of five men from Russia and Ukraine helped steal at least clx million payment mental capacity numbers, resulting in losses in plain of $300 million. Therefore, its very risky to transfer through the Internet, but its the future of the banking and finance services sectors.When the foreign companies join the Singapore market, there must turn in more competitions to the local company. When the foreign banks mother to Singapore, the costumer have more choices to choose which one to use and which one they will get more benefit. In the other word, the number of the customers will decrease. When Citibank, standard chartered bank and HSBC etc. arrest into Singapore, the POSB, DBS and OCBC etc. possess some certain of impact and loss. This will be a grand challenge that banking need to fact it, as well as the financial services.Strategic planningWhen banking and finance services sectors start their business, they need to have a scheme so that while the business encounter the risky, the company can loss lesser. First they need to study and analysis the high developed in each continent. Secondly, they can predicate the future drift so that can prepare the back-up plan in case of an emergency, it benefits these sectors run their company while the economics crises come, and prevent the company become funny house when it comes, the employee and top manager can run as they plan that they did in advanced. In the plan, if the company has to reduce a surplus, they can use chase ways, downsizing, demotions, early retirement and demotions. These methods can reduce companys outgo and the company can use this money to other ways, its the best way to reduce the damage from the economics crises.When the banking and finance services sectors use the Internet to transa ction, they need to ensure their Internet is undecomposed and need to cow chip the firewall is work so that kill the virus and stop the hacker hack in the system or not the company will loss millions of money. After the company releases the application for the services, they need to guarantee that the application is safe enough otherwise the costumers will ask the company compensation for their loss. The company needs to fix the bug immediately when costumers feedback the problem to the company in case the sorry seizes the opportunity to steal the money and information. In the meantime, the company can work with cyber-police it can avoid the cyber-crime effectively. When the cyber-crime happen, the company need to catch cyber-police immediately, tell each details to them so that cyber-police can trace criminals trace.The situation of the local company will become more and more difficult while the foreign company come to deal out the market together. When the company competes wi th local and foreign company, they need to release more and more convenience and cheaper services so that to attract more and more costumers use your service. In order to hoisting agonisticness, OCBC publish a card called nonnegative Visa Credit Card, the owner of this kind of credit card can enjoy a lot of promotion in varied places, for example the costumers pay by this credit card with 5% rack up everything at FairPrice and FairPrice Online, 18.3% fuel savings and earn Smiles Points at Esso, 3% run into at Popular, etc. (OCBC, n.d.).ConclusionMAS stand for Monetary Authority of Singapore, which is a central bank of Singapore. MAS is the place that to promote sustainednon-inflationary economic growth,anda sound and continuous tense financial center, therefore from 1987 MAS started to enact different act so that Singapore market can develop healthily and rapidly. In these act, MAS manage the different kinds of statutes pertaining to money, banking, insurance, securities and t he financial sector in general, as well ascurrency issuance. It leads a achievement road for those banking and finance services sectors, and also provide a program to them, let them to discuss and determined the important movement to the Singapore market. Singapores successful cannot leave the MAS.Banking and finance services sectors is one of the study contribution to Singapores GDP, therefore it definitely has a capital future. But in the meantime, these sectors should prevent the crisis from occurring in the first place. They need to checker from the pervious fall away and also learn from other country exchangeable America, China, Ireland, etc. so that these sectors will not make the same mistake that happened before. In the future, the government should publish a safe platform so that the commercial tenant can trade on it and no need to worried about the cyber-crime. And more and more company will come to Singapore to start their branch company, there will more competitiv e and contribute higher GDP to Singapore together.