why is singapore so successful

How Singapore Makes Money 2024 - All You Need to Know

Last updated: January 2024

Singapore is very often regarded as one of the world's richest countries, having a highly developed free market economy. It boasts Asia's greatest per capita gross domestic GDP.

It's no surprise that Singapore is renowned as a bustling city with busy people working and living life to the fullest. It is, indeed, a wealthy country.

I'm guessing you're here because you're interested and looking for some good articles to justify how Singapore earns money and how wealthy it is.

You've come to the right place since this article will provide you with a lot of knowledge on Singapore, including how it produces money, how it is so successful, its history, its primary export, and much more!

So, without any further delay, let’s get started!

How are Singaporeans so rich?

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Is Singapore Rich? - How Singapore Makes Money

Singapore is one among the top ten wealthiest countries in the world, with an average adult wealth of $455,930. Did you know that Singaporeans are extremely hardworking and business-minded?

That is why Singaporeans are so wealthy, and they also contribute to Singapore's economy, making the country wealthier.

Despite the COVID-19 pandemic, Singapore's average and median wealth per adult continues to rise.

Not only that, but the laws and policies that have been created and sustained have made Singaporeans wealthy since these policies foster economic growth and a high employment rate in a country with an anti-corruption administration. Singaporeans earn more than the minimum wage.

As a result, with a nice, healthy, and clean environment in Singapore, individuals would be able to find more decent jobs.

Thus, with a decent, healthy, and clean environment in Singapore, individuals may find more decent occupations, allowing them to earn more money and contribute to the country's economic growth.

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What made Singapore so successful?

Aside from being one of the world's richest countries, Singapore is also regarded as having one of the most competitive economies, with enterprises capable of creating jobs, attaining sustainable growth, and enhancing the well-being of its citizens.

Several reasons contribute to Singapore's success and rise to the top, including the availability of competent personnel, advanced and modern technology infrastructure, advantageous immigration regulations, and the ease with which all new businesses may be established in the country.

Following that, below is a list of further aspects and explanations for Singapore's success:

Business-friendly environment

Singapore is well-known for its low taxation.

What Singaporeans and foreigners appreciate most about living and doing business in Singapore is the abundance of tax breaks. Inheritances, capital gains, gifts, dividends, and even silver, gold, and other precious metals are exempt from taxation.

Learn more: Is Gold Cheap in Singapore?

Geography and neighborhood

Singapore, as we all know, is located in the middle of Southeast Asia and serves as a logistical and commerce center, particularly for container ships.

Because it is a commerce hub, products shipped to East Asian nations such as South Korea and Japan, as well as container ships from the Middle East, always pass via the Malacca Strait.

As a result, Singapore is a commercial center for container ships.

Efficient and competent public sector

Singapore has a long history of paying high wages to public officials. That is why many Singaporean students study overseas on government scholarships, and they are required to serve in the public sector in Singapore for several years once they return.

As a result, the government encourages every competent individual to participate and strive for the betterment of society.

Singapore, on the other hand, has a strong rule and policy that states that they would not allow any corrupt actions and will penalize anyone caught doing so.

Livability despite inequality

Singapore always offers an inexpensive living environment for the less rich.

Despite the country's high degree of inequality, the government always ensures that everyone, no matter how wealthy you are, is treated the same as the less fortunate.

Rather than focusing on income distribution, Singapore's government decided to encourage meritocracy and create a decent and healthy living environment for people from both worlds.

Stable political environment and policies

Singapore's People's Action Party is a strong center-right political party.

They laid a solid basis for Singapore's economic prosperity, and when paired with the vision and charm of a visionary leader, Singapore was able to build and develop many other emerging countries.

As a result, Singapore's reputation as a solid and stable environment to run and create a business has attracted a large number of business owners, real estate owners, and investors.

Housing development policies in Singapore

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What has been done to improve public housing in Singapore? - How Singapore Makes Money

Back then, Singapore had the largest concentration of slums in the world. However, with the support of the HDB's housing development regulations, Singapore gradually grew into a megacity.

People living in the slums were able to relocate to a planned site.

As a result, these housing regulations had a significant impact on Singapore's working settings, particularly for those who were relocated from slum areas. They were able to obtain decent occupations, which boosted Singapore's overall economy.

Read also: Cheapest Condo in Singapore

When did Singapore become wealthy?

Mr Lee Kuan Yew, a member of the "People's Action Party," is widely regarded as the guy who developed and constructed Singapore's prosperity and the way we know it today.

He was the one who designed the legislation to attract multinational corporations, resulting in Singapore becoming one of the richest nations in the world, with a greater employment rate, economy, and life expectancy than other developed and larger countries.

Aside from that, Singapore's anti-corruption regulations aided in the establishment of a proper balance in which all Singaporeans were looked after and provided with a good existence.

Without Lee Kuan Yew's good and honest leadership, Singapore would not be as wealthy and successful as it is now.

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What is Singapore's main export?

According to the most recent data, Singapore's exports grew to $54,695.14 in January 2023. Singapore's primary source of earnings is foreign commerce, which includes chemical products, machinery and equipment, oil bunkers, electronics, and miscellaneous manufactured goods.

Singapore has export partnerships with six well-known nations, including Japan, China, Malaysia, the United States, Hong Kong, and Indonesia.

Why is Singapore so economically successful?

Singapore is an incredibly economically successful nation due to its highly efficient government, stable institutional framework and political setting, and excellent infrastructure and education system.

The city-state has successfully utilised various policies and reforms to alleviate poverty, boost their competitive advantage and achieve overall success.

Singapore has built a strong and solid pro-investment environment that attracts smart investments from all over the world, creating economic opportunities for businesses and individuals.

Its strong public policies, sound government and corporate governance, and fiscal discipline have been the driving forces of their economic success.

Singapore’s pro-enterprise environment, low taxation system and integrated markets and industries, have also contributed to their overall economic success.

How did Singapore develop its economy?

Since its independence in 1965, Singapore has been developing its economy by focusing on market liberalization, market deregulation, and regionalization.

To further its economic development, the Singaporean government has maintained a pro-business attitude and implemented policies to enable free trade.

The government has also provided ample infrastructure support, including modern transportation systems, advanced communications and educational systems, and has also invested in health and social services. This has enabled Singapore to promote innovations in manufacturing, technology, and research and development.

Singapore is also a major player in the global financial sector, with a large asset management industry and a major role in shipping, logistics, and finance.

By leveraging its strategic location and pro-business climate, Singapore has been able to create a thriving and diverse economy that is focused on capitalizing on new economic opportunities and technological advances.

How much is considered rich in Singapore?

In Singapore, being considered rich varies based on individual perspectives. Well, do you know that Singapore has 240,100 millionaires, 329 centi-millionaires, and 27 billionaires according to the World's Wealthiest Cities Report 2023.

High-net-worth individuals in Singapore are generally considered to hold assets of at least US$1 million or more.

However, on average, having a personal income of around $10,000 per month in Singapore is usually considered affluent. This amount translates to roughly $120,000 annually. Many high-income earners in Singapore are usually in the finance, technology or healthcare sectors.

Nevertheless, it is important to note that income alone does not necessarily equate to great wealth, as the cost of living in Singapore is quite high. Some other factors, such as owning property and investments, also play crucial roles in determining an individual’s net worth and overall financial status.

How Singapore Makes Money?

Singapore will not be as successful as it is now unless its leaders and government are competent, decent, and honest. They, too, began from zero, and Singapore was not previously wealthy.

However, with the assistance of the people in administration, it was ensured that it would prosper. A decent and honest administration has a significant impact on the entire country.

And that is how Singapore became a very successful and wealthy country up to the present day. Overall, we hope you found this article to be extremely interesting and that it has helped you learn more about Singapore's history and success.

Indeed, Singapore is an excellent place to invest and begin a new life. Greater chances, more money!

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Using AliPay in Singapore

List of Asset Management Companies in Singapore

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