Article contributed by DareToAct
Brokerage company CLSA published in September a 150 page report on Singapore, titled "Passport of Choice, Singapore - A new brand story".
It is a very bullish report on Singapore as a magnet to foreigners, both individuals and institutions. Lured by business-friendly environment, especially low taxes, foreign companies and rich individuals are expected to flock to Singapore. Many governments, example US and UK, are likely to tax high income earners more and also find ways to tax business corporations. These people and institutions are looking for friendly places to go to. Singapore is one such places.
The Singapore government has been selling this idea to it's people, that letting in foreigners will raise the economic tide and thus lift all boats. So far, the reaction of some part of Singapore suggests that some boats are being let behind, or the boats felt like they have been left behind. Will the Singapore government bull-doze through the next phase of foreign-led growth without ceding to the voices of the masses?
DareToAct
I am not an economist, and I do not know the mechanism of how 3 trillion US$ can help anyone.
ReplyDeleteTransfer that idea to Singapore.
Our country is extremely small. Batam island is slightly bigger. How can we have a mechanism that will feed 4 million "true" Singaporeans?
Competeing along manufacturing lines and shipbuilding is a sunset method.
Cheaper, Better, Faster? cannot help either.. China is even cheaper, faster and getting better by the day.
Creating a "safe" haven for wealth is one way, although how the earnings from this wealth is distributed is questionable.
I like to think we have options that are viable, but I do not see it proposed anywhere.
There is so much talk about how the current method, system is not fair enough.
There are very unclear ideas on how to replace this: protect workers, promote organic growth.. what does it mean?
That our island state have sufficient numbers to generate sufficient spending??
For any economy, its the consumer that drives it. Consumers can be internal or external Do we have enough?
If 6million people were to spend S$1000 per month, will that be enough? to pay for a multi tier salary?
Where is the original S$1000 comming from?
I just have a discussion with my financial adviser. She is telling me that there are many foreigners setting up company here now in financial industry. No money in the West and now come to the East to dig $$. Better becareful with your hard earned $$ and look out when approach for investment. We are not like Hong Kong where you are backed by Govt to get your money back from those failed mini bonds or Lehman Bros investment. Here you die your business as long as there is good GDP growth to show.
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