Human Capital and Economic Growth in Singapore

METHODOLOGY & DATA

In previous sections of this dissertation introduction and literature review of the topic has been presented. The purpose of the paper is to talk about human capital and economic growth in Singapore. Since the emergence of globalization and modernization among countries across the globe, economic growth is not a big deal. But all in all, it depends on the strategies and attitude of nations they have towards their resources, production, and consumption. Singapore’s economy is known for its openness and free-market structure. The economy of Singapore is one of the developed economies across the World, with having no foreign debts, positive surplus, and highest government revenue. Singapore’s economy is generated by exports of machinery, financial services, electronics, tourism, and many other sectors. Singapore’s economy is the World’s third-least disturbed or corrupt economy. Because of its economic growth and sustained financial structures, the country nicknamed as “Asian Tiger.” This paper intended to analyze the position of the country in Asian as well as on the international economic platform. This dissertation is covering a broad topic where data is collected by using available journals, books, periodicals, and official government reports. The research conducted using the mixed method research approach; qualitative and quantitative.

Most of the research dissertation comprises of qualitative research such as the researcher focuses on qualitative research while compiling introduction and literature review. As this research is country-wise, thus, it was difficult to conduct pole research or to conduct interviews. Singapore is ranked among the wealthiest countries in terms of economies because the country accepts technological innovation and use this innovation to foster change in its organizations. In the manufacturing sector, the implementation of technology and innovation help the country to take a shift towards development. According to the IMF and world bank, the GDP per capita in Singapore is a measure of the country’s prosperity and economy of the country is developing. The research method for this dissertation is chosen carefully by considering the nature of the research. In 1965 after independence, Singapore’s economy moves from a low-income economy to a high-income economy. Qualitative research by using articles and journals helped the researcher to talk about many untold facts about Singapore’s economy and the role of human capital. Several theories had evaluated to correctly analyze the standard of the economy of Singapore and what factors are driving its growth.

The dissertation addresses how Singapore developed over time by picking some essential events that supported the economy of the country. Since the endogenous growth theory, human capital is critical incorporation when it comes to economic growth accounting of Singapore. Human capital plays a crucial role in promoting technical progress and long-term economic advantage. Resources say that Singapore’s policymakers and economists suggest increased investment in human capital because this investment always pays off. While data collection for the paper, the researcher notices the role of human capital in the economic growth of Singapore is not ordinary. Researches say that investment in human capital brings much for an economy such as spill-over advantages that promote invention, efficiency, and knowledge to improve productivity and to enhance the growth pace. This research uses various statistical and skeptical economic models and theories to justify the role of human capital in the economic growth of the economy of Singapore. This study is formulated by conducting an in-depth analysis of available studies that validate the part of human capital on the economics of the country under review.

Data collection methods used for this paper are as follows;

1. Literature review of available authentic sources
2. Information collected from Penn World Table (PWT)
3. Empirical Literature
4. Statistical Model

Literature Review of Authentic Resources

            Thematic analysis approach has been used to collect and analyze the collected data from authentic sources. Thirty-eight total sources have been analyzed under stated conditions. There was a defined limit for resources to be explained to formulate the dissertation; all sources should be scholarly and peer-reviewed, references should not be more than ten years old, sources should be collected from trustable sources and blogs, and other local websites were banned. Thus, the whole research and literature review is conducted by considering all these conditions and successfully cite all sources in the literature review as well as throughout the paper.

These resources helped the researcher to state the topic with evidence. For example, it helped the researcher to claim that human capital plays a vital role in the economic growth of Singapore. Different sources that have been analyzed in the literature review say that the examinations offer confirmation to help improvement drove the movement business hypothesis. This paper takes a gander at new upgrades in the worldwide and commonplace economy as we show up toward the completion of pretty much over two numerous long stretches of significant budgetary improvement in Singapore, amidst a situation of fiscal crisis and nonattendance of trust in East Asia. It assesses the possibility of the movements as of now being brought into the Singapore guidance structure to imagine the enthusiasm for innovative and skilled work in the accompanying thousand years. We break down the activity of human capital tentatively and worldwide, and the family unit progresses, in the improvement of joblessness in Singapore. Apart from this one, there are several resources analyzed to formulate an authentic dissertation paper. These resources provide information about the past, present, and future trends of the economy of Singapore by specifically highlighting aspects of the economy. This information from literature would be used in further sections of the dissertation to persuade that Singapore’s economy is developing and expanding because of the strategic use of human capital and investment in some specific parts of the economy.

Information collected from Penn World Table (PWT)

            Pen World Table is the second tool used for data collection in this research. Penn World Table is defined as a set of compiled national information of accounts created by experts at the Groningen Growth Development Centre of the University of Groningen and the University of California, Davis. This software is available online to help researchers to collect real-time information about a country’s accounts and statistical performance of years. The country under analysis is Singapore; thus, researchers use the Penn World Table to collect real-time data of the economic growth of Singapore. The study of Penn World Table regarding economic growth in Singapore shows that from 1965 to 2019, the real GDP of the country is continuously increasing without having a drop in between. The chart of Penn World Table is showing economic growth trends from 1950-2018 for every country across the globe. In 2018, the real GDP of the country was shown in the figure below. This figure is highlighting the country’s GDP on different scales that make us understand that Singapore’s economy is not lacking from any side, and this is the reason for its success.

Figure 1:GDP of Singapore during 2018 (AMA Home, 2018)

A comparison of data available on Penn World Table shows that the country’s human capital investment brings success year by year. For example, in 2015, investment in human capital was less than in 2018; thus, this difference in investment marks a line between the GDP growth. This comparison also shows that the more a country will invest in human capital, the more it will grow economically. The human capital index below indicates that in 2015, Singapore ranks 24 number in terms of the human capital index (Poh Kam Wong, 2012).

Figure 2: Human Capital Index 2015 Rankings

While in 2019, Singapore, as one of the best economies across the World, ranked first out of 157 world economies beating many successful and flourished economies of Japan, China, Hong Kong, and Korea. Rankings of 2018 of top nations investing in human capital are given below;

Figure 3:Top Nations Human Capital Index 2019 (Index, 2018)

This data from Penn World Tables helps to understand old and current trends of GDP growth into the country. Singapore, according to a recent report from the World Bank, is a country that is spending a significant amount on human capital investment every year to foster economic growth  (Yulisman, 2018). In 2018, Singapore scored 0.88 and ranked 1^st among all developed countries. This index highlights how the country will expand its human capital investment in the future and how it expands over history. This data is collected from the website of the Penn World Table. This data gathered highlights the differences in the economies of countries. To develop more theories of overall effectiveness contrasts. Finally, to assemble point by point, country data bearing on the methodology of advancement scattering. Theoretical progressions that pressure the central employment of human capital in money related improvement have provoked extended vitality about how much guidance adds to advancement, yet may have uneven our understanding of the possibility of its responsibility. A general highlight on the instrumental activity of leadership in transmitting data limits its effect on improvement through its business as a blending power. Data collected from Penn World Table is analyzed by using econometric analysis. The econometric model is created by assuming values or economic co-efficient (Table, 2019).

Empirical Literature

            By using systematic logic, real-research resources have been used to evaluate the role of human capital in the economic development of Singapore. Observation plays a vital role in formulating this dissertation. Economic growth has been driven by investment in human capital into the country. Observation help researchers collect information from different sources like the Human Capital Index, official websites of World Bank, and Penn World Table. Although none of these sources provides information of 2019, still these measures were helpful in the formulation of data and results.

Much of the empirical literature has been done on the economic or industry level. Empirical literature highlights the role of research & development in the fueling industry. This also investigates the effect of investment on the efficiency and productivity of the economy. The researcher uses the Cobb-Douglas production model to reveal the role of research & development in the economy of the country. [Cobb-Douglas production function model is used to highlight the relationship between two inputs. The two inputs in this paper are human capital investment and economic growth. It is a function used in economics and production. This model gave calculations of the output of measures.] (Cottrell, 2019). The empirical literature that has been analyzed shows the impact of human capital investment and R&D on national productivity. The researcher used national-level data to empirically research the effect of human capital investment on the economic growth of Singapore. Cross-country regression of data of the top 10 countries shows that Singapore is ranking at the level first when it comes to human capital investment. And this indication highlights the economic development of the country. The researcher takes only developed countries into consideration that comes under the OECD. These researches find out that human capital investment could only be taken into account only when a country achieves economic prosperity and development in all its sectors. Guellec and van Pottelsberghe de la Potterie (2001) researched recent national data to reveal the impact of human capital impact on the economic growth of Singapore. Most of the available empirical data/literature is suggesting the role of the manufacturing industry in the economic growth of Singapore. Over the last 40 years, Singapore’s economy grows without any flaws, where the GDP of the country produces every year. Much of the economic growth of the country in the first three decades has been driven by human capital investment and foreign investment (Yuen Ping HO, 2017).

The researcher uses this data to formulate human capital investment as an essential or crucial element for economic growth in the country. It begins from having 24 years of foreseen human capital, evaluated as the number of years an individual can be depended upon to work in the extensive stretches of zenith proficiency, thinking about future, significant times of mentoring, valuable prosperity, and learning. Considering human capital, new development and the board is the spirit of most high-performing associations and affiliations. Government-financed preparation in this nation should be the equivalent. Administrators’ and teachers’ introductions have more effect on understudy achievement than some different variables, and their ampleness in extending understudy execution for the most part varies. Given the stakes, it is essential to catch up on that data and brace the preparation workforce to all the almost certain serve understudies. As one of the liveliest nations of Asia, Singapore is prominent for its dynamic and imaginative human capital progression exercises.

Statistical Model

The empirical relation between investment in human capital, labor force employment and economic growth in terms of per-capita real GDP in Singapore stated in the context of the Cobb-Douglas production function in numerous ways;

y = A _t h _t^a n _tβ ε_t                               α, β> 0

Where:

y_t: Per-capita real GDP 

h_t: Investment in human capital at constant prices 

n_t: Employed labor force  

𝛼: Share of human capital investment, that could also be the elasticity of human capital

investment.

𝛽: This symbolizes the share of the labor force and also the elasticity of the labor force.

𝐴_t: This symbolizes the Total Factor Productivity (TFP)

There is no relationship instantaneous between investment in human capital, labor force employment and economic growth in terms of per-capita real GDP thus the above equation could be modified as;

y_t = A _t h _t-i ^a_i n_t-i ^β_i ε_t

In the above equation h_t-i, n_t-i is (i= 1, 2…….k) are termed as lag series of n_t and h_t. This equation in linear form would be written as;

any = LNA + αi in h_t−i + β_{i and−i} + lnε_t

In the above equation, lny_t, α_i in h_{t−i, and−i} and lnε_t are logarithms of A_t, y_t, n_t−i, h_t−i, and ε_t.

In the data above three variables are used;

1. Economic Growth
2. Human Capital Investment
3. Labor Force Participation

Symbolic representation of stated three variables are given below;

Y_t = Logarithmic series of per-capita real GDP of Singapore

H_t = Symbolizing logarithmic series of human capital investment.

N_t = Logarithmic series of Singapore’s labor force participation (Maitra, 2016)

Figure 4: Time plots of Per-Capita GDP, Human Capital Investment and Labor Employment

The above graph is showing that over the period under analysis, the economic growth of Singapore is fueled by two major factors that include human capital investment and spending’s on the labor force. These types of investments bring productivity and efficiency for the workforce. Singapore’s economy is a growing economy that is continually struggling and achieving growth goals after independence. The economy is expanding based on many factors, such as along with human capital investment, workforce demand for skilled labor force is another important factor that fuels the economic growth of Singapore. These two factors contribute by 1.8% in the economic growth of the country during the last few years of 2000-2010. The above-estimated equation says that economic development in Singapore is directly related to human capital investment over the years. The point to ponder in the research and data collection process is that human capital and work power in the financial development of Singapore concentrated by evaluating the Cobb-Douglas model. It discovered that in the variety of economic growth, both the human capital speculation and work power have a critical causal effect. Human capital speculation neglects to raise monetary development at the underlying time frames. However, such a venture quickens financial growth with a development slack of four years. This seems, by all accounts, to be advocated hypothetically. Then again, human capital investment advances economic development, where the minor profitability of works is seen as positive and lessening.

This dissertation had formulated by using a mixed-method approach. The researcher uses a literature review and empirical literature to develop the qualitative part of the paper while the Penn World Table and Cobb-Douglas model for improving the quantitative section of the article. Data collection methods are chosen carefully because the research is on a national level. Singapore is a developed country and focusing on economic development by investing in every other sector. The researcher has estimated the role of human capital concerning the economic growth in the country. The hypothesis proposed in the introduction part of the paper used to research and collect data. Collected data aimed to justify the assumption that Singapore is developing gradually, and now the country achieves its economic development. The schedule appraisals to the improvement paces of certified yield, benefit, and enthusiasm for the Singaporean gathering region. Investigating progressed transnational training under understudy would, as a rule, scarcely present hard bits of knowledge on understudy flexibility, separating these to the extent ‘designs’ and the proposal this has on the system and internationalizing approaches. What is missing from this ‘huge picture’ is close by assessment of the smaller scale legislative issues of understudy flexibility in unequivocal land settings. Regardless of a developing school region in Singapore, there is a determined example of Singaporean understudies leaving the country for abroad examination, speaking to an expected issue of psyche channel. This presents a socio-politico assessment of understudy convenience and the escort legislative issues this has made for Singapore’s human capital planning (Maynes, 2011).

Meanwhile, the collection of data for the dissertation, the researcher found that Singapore uses both long-term and short-term forces to monitor economic growth. The structure of the economy of Singapore based on the free-market. The value-added manufacturing industry was contributing 3.2% in 2018. The distribution of economic sectors of the country; the communication industry provides by 6% in the year-by-year and finance industry developed by 5.9%. In 2019, the economic growth was moderate, and in the coming years, the country is putting efforts to accelerate in other commercial sectors. Economic development by human capital investment also enhancing the living standard of people of Singapore. For example, the World Bank launch a recent report to show that a child born in Singapore is 88% well-established and productive compared to other countries. Along with substantial budgetary help from the legislature, the nation keeps on fortifying the deftness and adaptability of its workforce by giving proceeding with instruction. Government spending on proceeding with instruction will almost twofold, to more than S$1 billion yearly.

This data collection techniques were chosen to state the selected hypothesis. The hypothesis was that the economic growth into Singapore is fueled by investment in human capital. Human capital is a stock and informative resource in individuals to use them for development’s sake. Countries use human capital for their advantage, and this dissertation is not meant to state that other countries are not investing in human capital. But it is to say that some countries like Singapore implementing human capital strategically and skeptically. Singapore is using human capital investment as a crucial element for economic development. Economic growth is expected and expanding over time by investing in human capital. Recent trends on Penn World Table are in favor of Singapore’s economy that indicates economic growth. The country’s strong economic basis, policies, planning, and strategies help the country. This collected data would be discussed in further sections of the dissertation.

RESULTS

Research on the economic development of Singapore and the role of human capital investment. The researcher used the mixed-method approach to collect data and describe the research question and to justify the proposed hypothesis. This research revolves around the fact that the economy of Singapore is growing because of strategic investment in human capital. Studies conducted for this paper shows that human resources or human capital are one the single most strategic significant capital for Singapore. Singapore is a small country having a less territorial grip and have no natural resources is termed as one of the most developed countries across the World. The state emphasizes on the development of human capital and adapting technological development. In economic plans and strategies, human resource development is an essential element and core part of all procedures. In Singapore, economic policies are developed while having a concentration on more investment and sustainable consumption of resources. The dissertation step-by-step states how the country accepts the plan and implement resources to foster economic growth.

Every fiscal year shows growth in the total revenue of the country. For example, per capita, the gross domestic product of Singapore in 2017 was US$54,530, while in 2019, the gross domestic product of the country is noted $362.818 billion by per capita measure (The World Bank In Singapore, 2018). The researcher used numerous sources to conclude the fact that human capital investment plays a crucial role in managing growth and development in the economy. This dissertation contains six parts in total. The first three parts talk mostly about facts of the economy of Singapore’s economy, policies, government, and strategies that fuel the system. Analysis of the country’s economic position shows that it is an inspiration for all developed countries and developing countries of Asia. Without having any natural resource on the territory is a great achievement that the country still maintained its economy and putting efforts to make it more stable.

The introduction part of this paper highlights that Singapore is a developed country with having developed technological infrastructure, planning investment, and economic structuring. Along with introducing Singapore’s functions and structures, the researcher highlights some socially beneficial activities that are little elements of success. Furthermore, it discusses the reason for a stable economy and growing institutions, which is a developed and honest political structure of the country. Political stability is indeed crucial for economic stability. Many Asian countries like Pakistan and India fails to maintain economic institutions because they were unable to establish their political institution. The researcher troll the history of Singapore that shows the country is developing since years gradually, and now that gradual struggle put the economic system of the country at the highest rank across the globe.

It was essential to troll the history of the country, to define the form where they begin and how. Different resources have been evaluated, both current and old literature, economic histories, and other essential elements that state the history of researchers. Singapore uses human capital as a crucial element for economic development. The country has maintained its human as well as material resources to create a sustainable development policy that helps the country to move on consistently.

The use of Penn World Tables to evaluate the data sets of Singapore’s economy shows that the country’s GDP is growing since 1965 to the last year with minor fluctuations. As shown in the image below;

Figure 5: Gross national income (GNI) of Singapore from 2009 to 2018

The Penn World Tables provide the GDP of the country in real-time and help the researcher to come up with authentic research. The methodology selected for the paper was mixed-method, both qualitative and quantitative analysis. And there were four methods of data collection. After data collection, the next step is to evaluate that data to formulate results. Assessed results from data collection are as follows;

1. Index Measure

The Human development index is a measure of a country’s prosperity and success concerning the development and growth of its private institutions. It measures index outcomes of each country with fractions to 1. The index measure is taken by covering mortality rate, education standards, malnutrition frequency, and foreign relations of that country. The index rankings in 2019 show that all developed countries like United States, Europe, and North America ranked above 0.75 while Asian and Sub-Saharan areas ranked below this. In 2019, Singapore ranked the list, and after that, Japan, Hong Kong, and South Korea. Comparative to Singapore, other South Asian and African countries ranked lowest on the list. The World Bank says that Singapore, the top-ranked country, is here because of its potential earnings that comprise 88% of total revenues. And the one that ranked at the lowest of the ranking list is because of its weak potential earnings. The World Bank also highlights that countries that adapted and potentially used the wave of automation and technological development are ranking at the top. As discussed at the start of the paper, Singapore is among those countries that adopt and utilize technological advancement to gain a competitive advantage. Singapore scored 0.88 out of 1 is because of its focus on education, labor force, and human capital investment (NAIR, 2018).

2. Theoretical Analysis of Singapore’s Economy

To formulate research results, the researcher again evaluates theories that could be implemented in Singapore. For example, the human capital theory in Singapore. World Economic Forum along with the World Bank, declares Singapore as a developed and sovereign nation having control over production manners. Th part of the literature review says that; the Global Human Capital Index 2017 positions 130 countries on how well they are developing their human capital across four estimations – limit, association, improvement, and capacity – similarly as across different age social events. The report found that the World has developed only 62 percent of its human capital, as evaluated by the document. Thirty-eight percent of their capacity. The United States and Germany are among the best-performing nations in the best ten overpowered by humbler European countries (Anwar, Manufacturing Sector Growth: A Case Study of Singapore, 2007) – shows the indexing of countries based on their human capital creation. This analysis shows that Singapore’s strategies for development and planning are far better and working in real life the strategies and planning of any other country. This indicates that numerous countries are wasting 38% of their resources and talents. Among European countries, America and Germany are some of the top-performing countries in terms of human capital investment and other sectors. International reports show that some states, even after expenditures on education and human capital, fail due to inadequate planning and lack of required skills. Regardless of whether enthusiasm for human capital and business added to financial improvement in Singapore in the course of the most recent three decades, it has been inspected. Johansen co-joining tests find a since quite a while back, the run association among budgetary turn of events, human capital hypothesis, and used work power. The article likewise asks the components of money related improvement that stayed aware of the human capital hypothesis and work influence business, including a battery of econometric systems. It is found that both human capital theory and business add to the rise in money related turn of events. The human capital theory at the essential stage has approaching improvement sway and, at long last, animates upheld advancement with a brooding leeway of 4 years G. Agiomirgianakis, 2002).

In association continued after some time, the investigation shows that human capital progression would provoke a strenuous climb in financial turn of events. Work power business progression, in such a way, may incite a concise rising in fiscal turn of events. The remote theory has been for quite a while seen as the essential driver of Singapore’s collecting division improvement. By using yearly data for the period 1980–2005, this paper battles that despite outside hypothesis, human capital is moreover accepting an essential activity in foresting delivering part advancement in Singapore. The observational analysis shows that external endeavor, human capital, and worth included amassing are co incorporated.

3. Human Capital Investment

Human capital investment is the main focus of this dissertation to address. This paper is intended to analyze the role of human capital investment in Singapore’s economy and how it differentiates the country from other competitive world economies. Singapore is investing in its humans and working to enhance the standard of the country. Singapore’s economy is one of the developed economies because workplaces in these countries prefer high-skilled workers and employment strengths. Human capital investment and improvement in labor practices are two crucial areas to focus on. The head of World Economic Forum (WEF) named Ms. Saadia Zahidi, says; “To break into the global top 10, (Singapore) would benefit from fully realizing the human capital boost that would come from addressing the nation’s employment gender gap as well as from further improving the inclusiveness of its education system.” (Min, 2017) This statement shows that some countries need to invest in their education systems and need to remove gender gaps from employment to foster economic growth like Singapore.

Recent reports from the World shows that in terms of human capital investment and development, Singapore is one of the best countries. The United States is one of the developed and highlight advanced countries but still beaten by Singapore when it comes to human capital investment. On the other side, Japan is a technologically advanced country but even beaten by Singapore and ranked 14^th of the list of human capital investments. Human capital investment in Singapore embodies the expertise and skills of its people when nurtured carefully to create productive outcomes. Shareholders of the economy take their responsibility and play an essential role in creating mutual competitive advantage. According to Singaporean economists and policymakers, four elements are necessary for the development of a new economy. These four elements are knowledge capital, emotional capital, human capital, and social capital. Singapore’s economy uses all these four economies to create a meaningful whole. The researcher evaluates in the literature review that all business analysts are not consistent with their views towards the factors that fuel the economic growth of Singapore. Both experimental and observational types of research are completed or in the process regarding the economic development of Singapore that is expected to show the World about facts of economic growth into the country. The researcher during the analysis process found that investment in human capital, living standards, salaries, and healthcare sectors all are balance. The key to success in the economic management of the country is to keep balance in all social, political, and economic sectors. Since the ability to improve will expect a continuously apparent activity in driving future money related turn of events, the national lawmaking bodies of both Singapore and Malaysia have stimulated course of action attempts got ready for strengthening their national advancement systems. These undertakings fuse the colleague of wide measures with improving execution in zones like R&D, guidance, creative development, and data streams – which are largely critical determinants for creative development.

4. Analysis of Cobb-Douglas Production Model

This model has been applied to collected data to analyze factors that contribute to the economic development of the country. The cobb-Douglas production model is used in this research to discuss variables. The researcher focuses on three variables; human capital, economic growth, and labor practices. These three variables are interlinked in one or the other way revealed during researches. This model, through using equations and symbols, shows that investment in human capital, R&D, and potential labor forces are required to foster economic change and for economic success. The literature review is compiled by using numerous trusted sources that tell the researcher that Singapore is moving strategically.

This dissertation emphasizes the importance of human capital investment and its benefits for an economy. There is the number of elements that analyze economic progression into the country that features are; state development, the practice of compensation gap between untalented and experienced laborer’s, and above all, how much a local economy can achieve. This model helps the researcher to evaluate the relation between three variables and how these three variables can affect the well-being and success of any economy. Assessed results from collected data say that the economy of the country was stable because of the above mentioned three factors. Penn World Tables had used to assess real-time data of Singapore’s economy that helped the researcher to found out that there are some countries like the United States and Japan that are in direct competition with Singapore but because of having a lack of management and stability in roots. The researcher also evaluates present and future economic perspectives in Singapore in that shows that country is dealing with some minor problems that would be solved in the coming future. These small problems include increasing trends of a culturally diverse workforce. This is an issue for Singapore because the country employed its local workers to save administrative business costs and to provide more and more opportunities for domestic workers. Thus, emerging trends of a diverse workforce and its benefits serve as a challenge for Singaporean’s economy.

Another factor that is concluded during this research is that although Singapore ranked first on human index among all countries across the World. But still, the states are less popular and less known on international level comparative to western countries like America, Europe, etc. That is because of the dark and unacceptable past of the country. The way Singapore rose is surprising. Because as researches says that since 1965 the state was not even sovereign or independent. And now, after a few years, the country stands as a durable sovereign power on the map of the World. Improved GDP, enhanced healthcare sectors, available educational opportunities, and higher living standards are more than a country gave to its citizens. All these factors show that it is all about planning, policies, and attitude towards growth and development. Despite the higher competition in Asian and Southern countries, Singapore successfully made its position and would develop continually on the developed basis.

We are living in an advance and innovative World where everything is improving and fostering change rapidly. Economic and social change is not a big deal in this diverse World. Thus, compared to those countries that are still in the development process, Singapore will foster quick change in its social and economic institutions. The country now has the capital to defeat the challenges of time and emerging competitors. In the coming years, the competition between world countries would strengthen, and only those countries would come over who would have investments and capital advance strategies.

Researches on this topic evaluate that in coming future, Singapore’s economy would be in good shape because, in the last five decades or a few years put strength in it and make it undefeatable. To enhance potential and capacity, Singapore made its name in the international economic market and centered its position as ASEAN’s premier hub and secured as a favored position by multinational companies. These huge positions are held by the country because of its peaceful work environment and the value it offers to humans. The Singapore economy is at an intersection, confronting difficulties in the standard condition just as inside its local economy. Its area on the back of the three significant monetary development areas of China, India, and ASEAN ought to furnish Singapore with proceeded with a chance to develop. In any case, the rise of new advancements, changing structures of worldwide seriousness, and developing economic patriotism could make interruptions its monetary potential.

Locally, Singapore faces the expanding weights of maturing and easing back populace development, increasing costs, powerless advancement limit, and declining profitability development. The two primary modification components expected to manage such difficulties are top-down approach mediations by the administration and unconstrained base up alterations by organizations. Without intense alterations, Singapore’s financial model will most likely be unable to produce satisfactory reactions to conquer its household and extreme difficulties.

Above mentioned data says that the GDP of the country is increasing continually, and there are expectations that the company will maintain its standard, and the GDP growth would remain the same. But at the same time, the researcher says that the emergence of globalization and advancement makes social and economic change an easy practice. Thus, it is impossible to predict the rising GDP of the country. The researcher also talks about direct competitors of the country that might take a shift and come in the ground over Singapore by adapting innovative economic development strategies. After the World Bank revealed the importance of human capital developed countries to start investing, and in the coming future, they will compete on a higher level. This research helps us to understand key factors that fuel the economic growth of Singapore and what factors that other countries should ought as crucial.

Evaluated results are positive regarding Singapore’s economy and provide filtered results of elements that could help an economy to develop. Instead of comparing the economy of Singapore with western economies, its comparison with Asian countries like India, Iran, Pakistan, and China helps researchers to evaluate that the country is leading in this region too. And there are no possibilities that any Asian country will compete in Singapore and come over its standard because of a lack of active management. The revelations of this examination show that neither one of the points of view explains ethnic compensation irregularity in Singapore. Furthermore, the observation shows that enlightening complexities among the Chinese, Indians, and Malays speak to close to no of the compensation gap. A unique piece of compensation differentiate is a direct result of partition. The wellspring of this detachment lies in the disconnection of ethnic minorities in lower-paying vocations and occupations generally adventures, reflecting Chinese control in the fiscal and political circles. The undertakings to highlight a segment of the troubles looked by the Singaporean economy generally speaking and the gathering division explicitly. The research provides a detailed analysis of what is happening in the present and who is in danger in the coming future. Instead of messing up a human capital investment with technological investment to keep things on track is the key. The collected data points out that the country will lead or lag depending on competitors and the changing world environment.

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