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| Growing Our Economy |
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 | Economic Management |
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| Home > Growing Our Economy > Economic Management > Philosophy |
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Singapore adopts the free market system so that our industries can respond quickly to market signals and adjust their strategies accordingly. This also ensures that our economy's scarce resources are allocated efficiently.
As far as possible, the government does not intervene in the economic decisions of firms, unless overriding social or political concerns prevail. With rare exceptions, entrepreneurs are free to set up businesses in any sector.
As a result of our openness, Singapore has benefited from the presence of foreign MNCs. They bring in capital, technology, management know-how and access to world export markets. With the free market system, we allow open competition not only among domestic firms, but also from foreign firms and products. This ensures that local companies remain competitive without having to shut themselves out from external competition. Consumers also benefit from lower prices.
The Singapore economy is open to the world, in trade and investment. This is both a matter of policy and necessity because of our size and limited resources. In 2009, our trade to GDP ratio was 282%, one the highest in the world.
We believe that growth depends much on freedom of trade and economic linkages among economies. On a regional basis, we recognise that Singapore's prosperity depends on the prosperity of our neighbours and vice-versa.
Singapore therefore works with like-minded countries within international and regional fora to advance the cause of free trade. We support proposals aimed at fostering trade among nations like the Asia-Pacific Economic Co-operation (APEC) and the ASEAN Free Trade Area.
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| Last updated on 24/06/2010 17:27:44 |
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