What’s Challenging Singapore’s Successful Economy (2018 Update)

Posted by admin
on January 15, 2018

What’s Challenging Singapore’s Successful Economy (2018 Update)

KEYWORD PHRASES – challenges facing Singapore 

singapore economy
Singapore Economy

 

 

 

 

 

 

Singapore’s journey to development is an exceptional one. Starting as a small country-state with little to no resources and the lack of infrastructure and support from foreign nations, today Singapore has grown to be a developed nation, and is at par with the USA. There is no denying that Singapore enjoyed a rapid growth from being less economically advanced to one of the developed economies in the world during the past 50 years. Its progressive thinking leaders, open economy, and free trade acted as critical catalysts to its growth.  

However, since the last couple of years, the Singaporean economy is under the weather. Reports stating the slow growth pace has been doing rounds. As Singapore marked its 50th anniversary in 2015, Prime Minister Lee Hsien Loong cited some critical challenges facing Singapore and how the nation can overcome them.  

Although the country has shown great progress, the future is filled with challenges and constraints. As economic cycles are getting shorter, the developed economy has less room for catch-up growth and sharper constraints. Here are some key challenges facing Singapore, which may also lead to trends for the future:  

Technology Disruption 

The emergence of disruptive technologies is one of the biggest challenges faced by Singapore. The effect of technology on all industrial sectors is visible around the world. The emergence of technology has lowered costs and enabled more businesses to enter the global market. Whether it is in the manufacturing or retail sector, technology is taking over certain jobs. 3D printing and additive manufacturing are changing how factories are configured. Retailers are shifting online to serve their customers. Today, you don’t even have to go to a travel agent for your flight and travel bookings. You can do that through travel booking platforms.  

Yes, jobs of routine-nature are being eliminated. But, they will be replaced by newer, skilled jobs. Since new types of jobs are being created, Singapore will need to match up with a talented workforce to prevent unemployment and slow digitisation. Initiatives like SkillsFuture are the way to prepare the workforce for new jobs.  

Need for Local Innovation 

Singapore’s growth has been exceptional since its inception. However, in the last few years, it is moving from a phase of rapid catch-up growth to trend growth, which is mark by a low GDP growth. To avoid an economic doom, Singapore must focus on local innovation along with using resources developed abroad. Promoting small and medium-sized enterprises (SMEs) can help the nation as they provide a continuous flow of business and employment opportunities, which rejuvenates the ecosystem. Although SMEs have a tough time competing with big players, those who survive the competition usually emerge to be a large fish themselves.

The surviving SMEs grow faster, drive productivity, and act as a supporting pillar to the overall economic growth. And, as they expand to international waters over the time, they become stalwarts for Singapore’s economic growth. Since SMEs also create more jobs, they act as a buffer for employees after a recession. While this is the need, Singapore must not overlook the importance of MNCs. MNCs provide abundant job opportunities and also expose employees to different facets of doing business. This exposure is important for entrepreneurship. The nation can also look at collaborations between MNCs and SMEs to boost economic growth.  

Decline in Local Workforce 

People create ideas and ideas lead to innovation. To maintain economic growth, Singapore needs more productive and skilled workforce. Yes, businesses in Singapore do have access to a pool of local and immigrant talent. But, the growth of local workforce is expected to slow until 2020. You can attribute this to low-birth rate and the growing ageing population. Churning out productive workforce and providing quality education are major challenges face by Singapore. Since Singapore plans to harness technology to create more opportunities, it must train its human resources to take over the new jobs created in a digitised world.

The education system needs to prepare children to think critically and out of the box. It must also promote undying motivation in students, so they live with a ‘never give up’ attitude. While SkillsFuture helps Singaporeans upgrade their skills, the nation also needs to remain open to skilled foreigners. Greater diversity brings in fresh ideas and helps in bettering the innovation.  

The Problem of an Ageing Population 

Singapore is one of the fastest graying populations in the world. In an event, Mr. Shanmugam shared a news article on how adult diapers will soon outsell baby nappies in Japan. While doing so, he noted that Singapore is ageing even faster than Japan. In his lecture on June 30, 2015, when the country-state celebrated its 50th anniversary, PM Lee spoke about the concerns of ageing population. Demography indicates the future of any country. Singapore’s population growth rate in 2014 was 1.3%, the slowest in a decade. He also stated that according to some statistics, two adults would support a senior citizen by 2030 as compared to 5:1 ratio in 2015.

Increasing fertility rate from 1.2 to 1.5 over 25 years is one of the solutions give by him. While he assured that the government would do its part to facilitate this, he also admitted that Singapore also required a cultural change to become a more family-friendly country.  

So, here were some of the challenges facing Singapore currently. The way it tackles these challenges will tell us whether Singapore succeeds in retaining its successful economy and the strong pillars of virtue that it is based on.  

 


Quick Credit Pte Ltd

Quick Credit Pte Ltd is the best money lender you will be able to find in Singapore. Anything cash related, we will be able to help you. Our well train loan consultants will be able to come up with a good loan package to help you clear off all your outstanding bills or debts. In doing so, you will help you keep better track of all your expenses and money. We have been a licensed money lender since 2002.

We have the skills, knowledge and people to assist you through the entire loan process while providing you with excellent advice.

In addition, we have one of the highest positive moneylender reviews among money lenders in Singapore. Furthermore, Quick Credit is also one of the few moneylender open on Sunday!

Interested in knowing more about how you can get a loan from us? You can drop us an email at enquiry@quickcredit.com.sg. Our manager will get back to you as soon as possible. Or you can drop us a message here and our manager will get back to you soon.

Alternatively you can call us at +65 6899 6188. Or visit our office at 2 Jurong East Street 21 #04-01A IMM Building Singapore 609601. The nearest MRT station to us will be Jurong East Station.

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Bad Financial Habits You Need To Get Rid Of NOW!

Posted by admin
on January 4, 2018

Bad Financial Habits You Need To Get Rid Of NOW! 

KEYWORD PHRASES: Good money habits, good financial habits, financial habits 

bad habits
bad habits

When renowned American clergymen and historian, Jeremy Belknap, coined the phrase ‘Old habits die hard’, he may not have realised that this applies to every aspect of life including your finances. Most of us struggle through our life longing to be rich. Some of us get there, while others continue wishing for it. The difference between people who become wealthy and those who don’t are their financial habits. People with good financial habits succeed in growing their wealth whereas others end up dealing with their finances carelessly.  

Anyone can orient themselves to modify one’s bad financial habits with conscious efforts. But to do this, you need to be aware of your bad financial habits. As the popular saying goes, ‘The first step towards change is awareness’. With awareness, you will be in a better position to employ changes in your financial decision making. To help you get started, we have listed 6 common bad financial habits. Let’s take a look at them one by one. 

Using credit cards for the points 

Let’s accept one fact that in the world of banking, the motive of every player is to do business. The reward points on your credit card are no doubt helpful for you. But in the long run, it can weigh you down financially. The reward points will act as a catalyst in increasing your overall purchases. Suppose if you were going to buy goods and services worth $100; the reward points will tempt you to expend a lot more than $100. It is, therefore, a bad idea to use credit cards for points. However, if you use the credit card responsibly, then it can have a place in your wallet.

Buying more than you can afford 

In the initial phases of your career, it may seem tempting to not live within your means. You might want to be carefree about your expenses as you start using your earnings to buy a better house, car, clothes and so on. There is nothing wrong with wanting a good lifestyle as long as it is within your means. When you buy more than you can afford, you are incurring unnecessary debts. This habit is indeed harmful to your financial health.  Imagine if Mr. Lee who earns $60,000 a year spends only $45,000 whereas Mr. John who earns $1,50,000 and spends $1,75,000. Who do you think will be in a better financial position in the long run? It goes without saying that Mr. Lee will have a better financial scenario. He will have lesser chances of going bankrupt in his life. Hence, it is essential to get rid of this bad financial habit. 

Ignoring the importance of saving 

Most people who are careless with their lifestyle expenditure tend to ignore the importance of saving. If you look at any working professional who has done well for herself, you will see that they were able to grow their wealth only because they started saving money from the very beginning. It is only when you save that you can consider investing your funds and good investments are key to growing rich. Moreover, saving is essential to maintain emergency funds. Life is uncertain and at times, you could be in a situation where you cannot work or are jobless. At such times, your emergency funds should be enough to help you survive for at least 2-3 months. Ideally, you should save up at least 20-25 % of your income every month.  

Not budgeting your expenses 

A stipulated monthly budget is the financial benchmark you set for yourself. It helps you spend in a limit and allows you to effectively allocate funds in the right places. But most of us either – fail to stick to our budget or simply don’t budget our expenses well enough. This can be detrimental to your finances, especially if you are prone to impulse buying. Without a proper budget, it is difficult to curb your expenses or set reasonable financial goals to grow rich. A monthly or a quarterly financial budget will give you an overview of your expenses and thereby enable you to come with efficient cost-cutting strategies. Budget your expenses is one good habit, you need to start with right away! 

Complaining about your paycheck 

This might seem as a weird financial habit but constantly complaining about your paycheck can go against your desire to grow rich. Complaining will only add to your misery and marr your ability to grow. Instead, it is wiser to spend the energy to devise ways to help you earn better. If you are being paid less, then maybe you should consider putting in more efforts to get promoted, which in turn will increase your the amount on your paycheck.  

These were the a few bad financial habits that have been deterrents to your financial growth.  Work conscientiously to get rid of them and nothing will stop you from growing rich. 

 


Quick Credit Pte Ltd

Quick Credit Pte Ltd is the best money lender you will be able to find in Singapore. If you currently need help in anyway, do not be shy and let us know. Anything cash related, we will be able to help you. Our well train loan consultants will be able to come up with a good loan package to help you clear off all your outstanding bills or debts. In doing so, you will help you keep better track of all your expenses and money. We have been a licensed money lender since 2002.

We have the skills, knowledge and people to assist you through the entire loan process while providing you with excellent advice.

In addition, we have one of the highest positive moneylender reviews among money lenders in Singapore. Furthermore, Quick Credit is also one of the few moneylender open on Sunday!

Interested in knowing more about how you can get a loan from us? You can drop us an email at enquiry@quickcredit.com.sg. Our manager will get back to you as soon as possible. Or you can drop us a message here and our manager will get back to you soon.

Alternatively you can call us at +65 6899 6188. Or visit our office at 2 Jurong East Street 21 #04-01A IMM Building Singapore 609601. The nearest MRT station to us will be Jurong East Station.

Continue Reading...