Singapore Economy and Currency
Singapore is an island nation in Southeast Asia. City-state, one of the world’s leading capitals
Merlion – a statue of a half-fish-half-lion – a symbol of Singapore
The mild tropical climate and rich vegetation, an exotic mix of European chic and Asian customs, the openness and friendliness of the locals – that’s what makes Singapore so attractive for tourists.
The Republic of Singapore occupies about 50 islands, the largest of which is connected by a bridge across the Strait of Johor to Malaysia. Many small islands are uninhabited. Singapore lies just north of the equator, so the climate here is humid and hot. The country is unable to feed its large population. Nevertheless, Singapore has become one of the richest countries in Southeast Asia.
Almost all of Singapore’s rainforests have been cut down to make way for the construction of cities and industrial centers, and there is very little arable land left. The prosperity of the country is based on shipping, banking, electronic industry and international trade. According to legend, Singapore was founded by a Malay prince who landed on the island in 1299. The Chinese have settled here for centuries. From 1858 to 1959 the country was a British colony, and in 1963 became part of Malaysia. In 1965, Singapore became a sovereign state.
According to THEDRESSWIZARD, Singapore is an incredible blend of East and West, an amazing fusion of old and new. Nowhere else in the world can one find such green, shining clean streets; Singapore even got the name “Garden City”. Three great Asian cultures are represented here. In addition to the Chinese district, Singapore also has Little India, Arab Street and an area dominated by Malay culture.
The stories full of exoticism and vices about wartime Singapore are not entirely fair: there are not so many cycle rickshaws and not only are there no opium smokers on every corner, on the contrary, there are some of the most stringent laws prohibiting the distribution of drugs.
However, today’s Singapore is no less interesting than yesterday’s Singapore. Nothing breaks the living and dynamic unity of the past with the present in this city-state. In no other country in the world is the eternal drama of the departure of old societies, the replacement of old values with new ones treated so easily and calmly as in Singapore.
Singaporean society lives by very strict laws. Here you can practice any religion, but it is forbidden to gamble and even chew gum. The personal freedoms of Singaporean citizens are limited, but there is the lowest crime rate in the world.
Thanks to its important strategic position at the crossroads of sea routes between Europe, Asia and Australia, Singapore has become one of the world’s leading trading centers. In relation to other countries of Southeast Asia, it traditionally plays the role of a “marketplace” – goods produced in neighboring countries arrive here – for example, rubber and tin from Malaysia, rice from Thailand, which are then sent to other regions. At the same time, industrial goods are brought here from the USA, Europe, Japan and distributed among neighboring countries. When these countries began to build seaports suitable for ships with large drafts, the importance of Singapore as a trading intermediary decreased. To compensate for the losses, the country’s government began to stimulate the development of its own industry, attracting foreign direct investment for this. Since Singapore does not have natural resources, manufacturing industries are developing mainly, as well as the assembly of products from imported finished parts. The chemical, oil refining, assembly electronic, radio and electrical engineering industries, as well as shipbuilding, are becoming of great importance. The tin-smelting industry and rubber processing have retained their importance on a regional scale. In the 1980s, Singapore began to develop knowledge-intensive industries, specializing in advanced technologies not only in manufacturing (upper floors of mechanical engineering), but also in the field of intellectual services (information, financial, technological, medical). Despite the presence of highly qualified and educated local personnel, there are relatively few national entrepreneurs in the country. Almost all investments and business initiatives come from abroad. Foreign investors are attracted by the presence of a highly skilled workforce, weak unions and political stability. The leading role in developing a development strategy and monitoring the implementation of indicative plans remains with the state.
Singapore has become a major financial center and a source of technical and commercial information for neighboring countries. After the discovery of oil and natural gas on the shelf off the coast of the Malay Peninsula in Singapore, the headquarters of energy companies were located.
In 2002, Singapore’s GDP was estimated at $112.4 billion, i.e. $25,200 per capita. GDP is divided by sectors: the industrial sector – 33%, other services – 67%.
Singapore is one of the world’s largest ports (second place in the world in terms of cargo turnover). It is equipped with berths for ships of various types, serves 250 lines and receives 150 ships daily. Singapore Airport is a major hub for international airlines, equipped for round-the-clock flights in all weather conditions. This is one of the most modern and comfortable airports in the world, and Singapore Airlines is trusted by passengers from all over the world. Singapore annually receives 6-8 million tourists.
The national currency of Singapore – the Singapore dollar – was first put into circulation in 1967, when there was a division of currencies between Malaysia, Singapore and Brunei. At the same time, free mutual exchange and free circulation of three new independent currencies in these territories was envisaged.
In a relatively short period of time, the Singapore dollar has become one of the strongest and most stable currencies in the world. Theoretically, the currency parity of the Singapore dollar, confirmed by the International Monetary Fund, corresponds to the gold content in it of 0.290299 g of pure gold.
Banknotes currently in circulation in Singapore are 1, 5, 10, 25, 50, 100, 500, 1000 and 10,000 sing. dollars series “Orchids”; banknotes in denominations I, 5, 10, 20, 50, 100, 500, 1000 and 10000 sing. dollars of the series “Birds” and change coins of 1, 5, 10, 20, 50 cents and 1 dollar. In addition, commemorative coins issued by the International Agricultural Organization (FAO) in denominations of 5 cents, silver coins in denominations of 5, 10 and 50 dollars are in circulation in Singapore. and gold coins in denominations of 100, 150, 250 and 500 salmon. Doll.
As of January 1991, 8 billion SGD were in circulation in Singapore. dollars, including 7.5 billion banknotes and 0.5 billion tokens. The Monetary Authority of Singapore has the monopoly right to issue money. The most popular in Singapore are banknotes in denominations of 10, 25,100, 500 and 1000 sing. USD In active circulation (excluding banking business) were 7.1 billion SGD. Doll.
The government of Singapore leads the policy of curbing the growth of the money supply in circulation by stimulating non-inflationary economic growth. Singapore is one of those countries where the inflation rate is quite low, which in recent years has been at the level of 2-3%, which is one of the best indicators in the world.
Significant income from the export of goods and services, large receipts from financial transactions, a positive balance of payments, and a rather low level of external debt led to the accumulation of significant gold and foreign exchange reserves. In the period from 1980 to 1990, Singapore’s gold and foreign exchange reserves increased by more than 3 times and reached 48.5 billion sing. dollars, which is higher. than in such developed countries as Great Britain, Holland, Sweden, Denmark, Australia in Kanawa.
The main part of gold and foreign exchange reserves (99%) is gold reserves in foreign currency, 0.6% – special borrowed rights (SDR) and 0.4% – reserve positions in the International Monetary Fund (IMF). According to experts, the share of gold in Singapore’s gold and foreign exchange reserves ranges from 15% to 20%, the US dollar accounts for 35-45%, the Japanese yen – 20-30%, the rest – for Western European currencies, mainly the German mark, the British pound sterling to swiss franc.
Singapore’s gold and foreign exchange reserves are held in international financial institutions as deposits.
In recent years, there has been a steady upward trend in the exchange rate of the Singapore dollar against the currencies of Singapore’s main trading partners.