Role of government in the restructuring of the Singapore economy

Abstract

The Government plays a pivotal role in the restructuring of the Singapore economy. By ensuring a low rate of inflation as well as maintaining a healthy external balance, the Government has created a stable and conducive business environment. Against this backdrop, the Government also provides financial and tax incentives to stimulate the manufacturing, financial and tourism sectors. Most importantly, the wise leadership and support given by the Government has helped to steer the economy in the right direction. In addition, the Government encouraged multinationals corporations to base their headquarters in Singapore. The Growth Triangle concept was also mooted to complement the operational headquarter scheme. Finally, the Government spearheads the regionalisation drive and encourage companies to venture abroad in order to build a second wing for the Singapore economy.