Singapore, a Trade Finance Analysis

Question 1

The island state of Singapore, one of only three surviving sovereign city-states in the world, is located at the southern tip of the Malay Peninsula between the Indian Ocean and the South China Sea. With an area of merely 710 km2 the micro state is the smallest country in Southeast Asia and with a culturally diverse population of just under 5 million also the most densely populated in the world. Under British colonization throughout the 19th century the fishing village of Singapore evolved to be the most important commercial and military center of the British Empire in Southeast Asia. In 1963, Singapore claimed independence from Britain and for a brief period of two years merged with Malaysia before becoming an independent republic. Its independence also marked the beginning of its path to economic prosperity, evolving from one of the poorest nations to ranking above the United States as the ninth wealthiest country in the world with a per capita GDP of $51,500 USD (PPP 2008) today. Real GDP growth rate was an average of 7% from 2004 to 2007 but due to the global recession has decreased to 1.1% in 2009.

Singapore recognised its sustained economic success would depend on its skilled workforce. The city is home to over two dozen universities, public and private, including foreign university campuses form renowned institutions around the world. Public spending on education amounts to 3.7% of GDP (2007), ranked 122 amongst all countries in the world. Despite the comparatively low spending on education, Singaporeans continuously lead the scores in international comparative math and science tests. State funded workforce training institutes are excluded from this figure. The literacy rate at 94.5% is slightly above that of the regions average.

Singapore’s healthcare system is universal but co-exists with private healthcare. It is ranked the sixth in the World Health Organizations world’s health systems. The infant mortality rate is one of the lowest in the...