This year is the 50th anniversary of the founding of Singapore, the island republic that is considered the richest country in Asia by per-capita GDP. But according to a new analysis by Asianomics, The Hong Kong-based financial analysis firm, “there is undoubtedly a mood of frustration that the glory growth years are over.”
Although Asianomics doesn’t say it, the report comes at a time when the leadership has largely fossilized, with the country seemingly awaiting the death of Lee Kuan Yew, the founder in whose image the country has been built. Lee is now 91, fully retired, and appears increasingly frail. He led the People’s Action Party to eight straight electoral victories through 1990 before voluntarily giving way to Goh Chok Tong, whose own reign was only an interregnum that ended when Kuan Yew’s son, Lee Hsien Loong, took over in 2004 as premier. He has remained in power ever since
Government officials may be more pessimistic than they need to be, according to the report. “Searching for the next growth strategy appears to be the main pastime.” The answer, however, is to do less. The government, the report says, “just has to find a way to get involved in every aspect of economic life.” According to one source there are now over 200 schemes to incentivize business, some of them “so ill-thought-out that they would be better called scams than schemes (like paying business S$120 for every S$100 spent on robotic cleaning devices).”
Economic growth in the range of 2-4 percent looks to be the new normal for a country that ranked a spanking fifth in the world in growth from 1992 to 2012. The falling oil price is expected to curtail productivity in rig building and repair and refining, an important component of GDP. Full story...
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Although Asianomics doesn’t say it, the report comes at a time when the leadership has largely fossilized, with the country seemingly awaiting the death of Lee Kuan Yew, the founder in whose image the country has been built. Lee is now 91, fully retired, and appears increasingly frail. He led the People’s Action Party to eight straight electoral victories through 1990 before voluntarily giving way to Goh Chok Tong, whose own reign was only an interregnum that ended when Kuan Yew’s son, Lee Hsien Loong, took over in 2004 as premier. He has remained in power ever since
Government officials may be more pessimistic than they need to be, according to the report. “Searching for the next growth strategy appears to be the main pastime.” The answer, however, is to do less. The government, the report says, “just has to find a way to get involved in every aspect of economic life.” According to one source there are now over 200 schemes to incentivize business, some of them “so ill-thought-out that they would be better called scams than schemes (like paying business S$120 for every S$100 spent on robotic cleaning devices).”
Economic growth in the range of 2-4 percent looks to be the new normal for a country that ranked a spanking fifth in the world in growth from 1992 to 2012. The falling oil price is expected to curtail productivity in rig building and repair and refining, an important component of GDP. Full story...
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