Economic Development In Singapore

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Economic growth and economic development are two terms that are not foreign in economics. Economic growth is a condition in which the gross domestic product (GDP) of a country or region is seen as increasing, whether this increase is higher or lower than the country 's population growth. Whereas economic development is a process whose primary objective is to raise the GDP of a country or region more than its population growth. Many different countries face different economic problems and they also have different solutions and different ways of fixing it. Singapore is a country located in the southeast of Asia. It is rather considered as a small country because its area is only 660 square kilometers with a population of 5.3 million. Singapore…show more content…
Singapore 's economy wasn 't always stable, this country has experienced many challenges in terms of its economy but the government played such a big role in fixing the economy. Starting from 1960s, it faced a high unemployment rate. The government quickly made actions and asked help to the United Nations. The United Nations then helped by promoting and establishing an institution that would ease the foreign capital to enter the Singapore 's market. Although, significant growth has been achieved since the year 1960, Singapore 's economy was still far from being a success and it was still facing more economic problems throughout the upcoming years. In the upcoming years, Singapore faced problems such as the lack of capital, an abundance of low-skilled workers, and also the need of advanced technology. Therefore, a strategy that Singapore realized in the 1990s was that they needed to expand its economic activities in the region. Then, an economic cooperation among Indonesia, Malaysia and Singapore was made and it was called The Singapore-Johor-Riau (SIJORI) growth triangle. SIJORI 's aim was to relocate Singapore 's investments in manufacturing to the nearby areas of Johor in Malaysia and the Bintan and Batam islands of the Riau Province in Indonesia. Singapore acted as the main financial center of the triangle, while Johor and Riau acted as the areas for providing the labor force and…show more content…
On the other hand, we have Indonesia which is a country also located in the southeast of Asia. In contrast with Singapore, Indonesia is actually the largest Southeast Asian country, with an area of 1.9 million square kilometers. Indonesia has a population of 243 million. Indonesia 's capital city is Jakarta. Indonesia and Singapore has a few things in common, such as the same type of economic system, which is mixed economy. Mixed economy in Indonesia includes a variation of private freedom combined with government regulation. The government system in Indonesia is also the same as Singapore’s, which is a republic, which means that the chief of state and head of government is

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