Why Singapore has become a successful economy

Singapore’s economic development is always inseparable from the government’s influence and intervention because of its unique background. The situation faced by Singapore when it became independent was very severe and full of difficulties, mainly reflected in: backward economic foundation; limited domestic market; low education; high unemployment; ethnic conflicts; no social and housing security; and the face of external threats.

The reality of poverty and backwardness forces Singapore to adopt attracting foreign investment as a core strategy for economic development. Attracting investment from rich countries is not only out of consideration for getting rid of the existential crisis as soon as possible, but also out of consideration for its own security. How to attract foreign investment was the biggest challenge facing Singapore at that time. Singapore's approach is: the government encourages foreign investment to settle in the country through subsidies. It turns out that this approach works. But where will the money for subsidies come from? On this issue, Singapore has its own unique approach: by mandating the central provident fund for personal savings to solve the problem of the source and accumulation of national capital. The Central Provident Fund not only provides a source of subsidies for attracting foreign investment, but also provides financial support for the construction of government housing (equivalent to my country's affordable housing).

During its founding years from 1965 to 1973, Singapore took advantage of its superior geographical location to increase its attractiveness to foreign investment through subsidies, focusing on the development of entrepot trade and labor-intensive industries. The continuous growth of foreign direct investment has promoted economic development and created employment opportunities; the vigorous construction of government housing has not only achieved "home ownership", but also strongly stimulated the domestic consumer market, making people live and work in peace and contentment. The expanded accumulation of national capital, the Central Provident Fund, has formed a unique virtuous cycle model of economic development.

As the situation changed, although the policy was later adjusted, the basic model did not change, but was gradually improved on the original basis. For example, between 1974 and 1985, as the economic situation improved and entered the track of rapid development, Singapore began to develop its processing industry on the basis that trade re-exports dominated the economy. The problem of domestic labor resource shortages arose, and the economic situation Growth relies heavily on imported labor. On the one hand, the government at that time adopted immigration laws to use cheap migrant labor to solve the problem of labor shortage; on the other hand, it limited the growth rate of local labor costs by increasing the central provident fund contribution rate.

From 1986 to 1997, in response to problems such as overheated real estate investment and excessive growth in labor costs, Singapore vigorously developed the service industry and regarded the service industry as the "second engine" to promote economic development, especially the financial and The rapid development of the information service industry has turned Singapore into a regional financial and information center, giving it the ability to absorb and radiate trade and finance.

After 1998, the Asian financial crisis caused tremendous changes in the international situation. Faced with the rise of China and India, as well as high land and labor costs, the original development model has encountered challenges. The adjustment of its economic policies mainly focuses on using mature economic systems to actively develop knowledge-based economic industries and encourage national innovation. Entrepreneurship, the government's efforts to create a good environment, etc.

Singapore’s successful experience:

First, the legal system is sound. Singapore is a country with a sound legal system, and the implementation of strict legal management is the basis for all work. From a sound legal system to a stable political situation. There are more than 500 pieces of legislation currently in effect, covering all areas of society. Regardless of national ministries or statutory agencies, there is the support of one or several laws, with clear responsibilities, clear division of labor, and tight integration between macro and micro. For example, regarding the management of civil servants, a set of strict, detailed and specific laws and regulations have been formulated, including the Civil Servant Law, Code of Conduct for Civil Servants, Civil Servant Discipline Regulations, Prevention of Corruption Law, Property Declaration Law and The "Civil Service Guidance Manual" and other regulations have detailed and specific regulations on the recruitment, promotion and transfer of civil servants to the salary, benefits, leave, retirement of civil servants, assessment and training of civil servants, as well as the appearance and behavior of civil servants. The answers to questions about civil servants can be found in the relevant regulations. Adopt separation of duties, powers and responsibilities, and implement rules and regulations. Any civil servants who violate the Civil Servant Law, the Anti-Corruption Law and other laws and regulations will not only be criticized and educated, suspended without pay, but also brought to justice and held accountable Punishment.

The second is elite governance. Lee Kuan Yew often said to people, "Singapore has no resources except people." Singapore's rapid development is not only due to its unique geographical environment and open policy, but also a more important experience is that the Singapore government has always advocated the concepts of "a country based on talents" and "a country governed by elites", and promoted "elitism" to let the best people to run the country. At the same time, we actively promote the governance strategies of "education for all" and "lifelong learning", vigorously develop human resources, form a set of civil servant training systems and methods that meet the requirements of managing national administrative affairs and adapt to the development trend of today's world, and cultivate a team of A national civil service team that is fair, honest, dedicated, efficient and innovative. Singapore has a small population, rapid economic development, and a large demand for talents. Especially the government that implements "elite rule" is hungry for talents. This is the idea that Singapore has adhered to for many years.

In this regard, the Singaporean government has taken a series of effective measures. For example, the government selects high school graduates every year who are excellent in both character and academics, provides presidential scholarships, sends them to study at prestigious universities at home and abroad, and signs contracts with the government to serve the government after graduation. At least 5 years. If you are selected by the government to study for a master's degree (one-year academic program), you will need to sign a contract to extend your service to the government for another three years. During this 8-year work period, government and presidential scholarship recipients can choose both directions. If the talent is considered to be particularly outstanding, the government will promote them. This method of selecting talents can advance the selection process and time, and young people with potential can be used as a talent reserve for future government officials. In addition, during long-term inspections, according to each person's characteristics and different situations, they can be provided with The most suitable position. For the ruling party, the People's Action Party is an elite leadership party that emphasizes that "government depends on people." Singapore's future and destiny depend on a small number of elite talents, and those who govern the country must be the best talents. Party members are also divided into two parts: cadre party members and mass party members. Cadre party members are invited to join the party from outstanding elements from all walks of life, and high salary policies are implemented to attract all kinds of outstanding talents and let them become ministers, parliamentarians, etc. The salary of cabinet ministers closely follows the highest salary of the six major private enterprises in finance, manufacturing, accounting, engineering, law, and multinational enterprises, and it is generally difficult for mass party members to be promoted to cadre party members. A unique achievement-oriented performance politics has long been formed in the Singaporean government system. The selection of talents is entirely based on individual abilities and performance, allowing all kinds of outstanding individuals to enter government agencies to serve.

The third is a sense of urgency, that is, a sense of innovation. The core and key factor for Singapore, a small country, to remain invincible in a fiercely competitive international arena is its awareness of danger, crisis, and survival, as well as its awareness of innovation. This sense of crisis is well understood and runs through all aspects of government management, and has become the soul of Singapore's founding and strengthening of the country. First, continue to promote the reform of government departments and strengthen the innovation of institutions and operating mechanisms. For example, in the 1990s, Singapore proposed the "eight modernizations" of public administration and operation methods (legalization, institutionalization, proceduralization, centralization and decentralization, transparency, innovation, electronicization, and pro-business). In the new century, the 21st Century Public Service Plan has been launched, taking "innovation, change, innovation and improvement" as the basic values ??of the government and pursuing excellence in comprehensive services. Similar to many countries in the world, the organizational structure of Singapore's government departments is a vertical structure system. To improve service efficiency, it is necessary to provide an integrated and seamless government service, and to reorganize within and between departments. This is a big challenge for Singapore. In order to solve this problem, the Singapore government formulated policies, introduced new regulations, and allocated special funds to do these things, and achieved good results. Secondly, vigorously promote e-government and create an "innovation-leading country". Singapore is globally recognized as one of the leading countries in the development of e-government. In a survey on e-government conducted by Accenture, a well-known consulting company, Singapore has been rated as an "innovation leading country" in global e-government together with Canada and the United States for five consecutive years. Since 1981, the Singapore government has begun to implement electronic government affairs in a comprehensive and consistent manner. Singapore's e-government system mainly targets three major targets: citizens, businesses and employees of public institutions. It continuously innovates and applies in practice, promotes the public service departments to strive for excellence in improving public services, and effectively transforms public services. The way public services are delivered and the interactions between governments, citizens and businesses are conducted to provide public services with a higher level of convenience, efficiency and effectiveness.

The fourth is pragmatism. There is a strong tendency of pragmatism in all government work in Singapore. The situation of a small country, a dangerous island, and an isolated city has given members of the People's Action Party, members of Congress, senior government officials, and ordinary civil servants a deep sense of worry and crisis. Form a "philosophy of survival" based on pragmatism. "Efficacy first" or "usefulness" has become the rule for whether government systems and policy implementation are correct. The government has never been bound or restricted by any creed. It only believes in the principle of "usefulness is truth" and everything is useful and beneficial to the development of Singapore.

Hope this helps.