International politic economic is an academic discipline within political science that analyzes economics and international relations. Economic basis of Singapore, Singapore is a small country but the economic increase rapidly and the income of the population per year as high as the top of the world. Singapore is a new industry group, as well as Hong Kong, Taiwan and South Korea, are the main export products of the petroleum machinery products. The majority imported products, including energy and food. In addition, Singapore has tourism income brought into the country. Singapore is an international financial center, Industrial hub, Education, Highly skilled labor is skilled in the management of human resources and business and geographical conditions are conducive to a major maritime center.
At the same time, Singapore also has weaknesses in economic. Singapore is a country that imports raw materials, labor shortages and high charge of business. These things are pushing for Singapore trying to expand economic structure to the service sector more to reduce its dependence on exports.
The Singapore government has given priority to the development of national knowledge - based economy and implement policies to strengthen the competitiveness and economic development of the country as a business center services with high added value because Singapore bordering the sea. The government is building a deep-water port and has managed a system that makes Singapore a hub for regional services in many fields. Such as trade finance Transport and tourism, etc. Meanwhile, Singapore is among the countries with the world's most water transportation.
The problem and weaknesses in the economy of Singapore have many sides such as Singapore not enough natural resources, little space that difficult to expand economic investment, lower labor shortage, high cost of living. The first, Singapore has few natural resources Unable to export as much as other countries. Make investment or produce some items need to import technology and raw materials from other countries. It is increase the cost of production.
Second, there is not enough space to expand the economy and agriculture that made the economy of Singapore-driven by industry because early, Singapore trading operations by the commercial and maritime as a principle. At the same time, the relatively high unemployment rate, and the trade could not create enough jobs, the Government has decided to develop the country into an industry where a lot of labor. The Government has announced open door policy and offers various incentives to attract foreign investors into established factories to bring money into the country, because there are investors coming to invest in the country to make the domestic economy have been driven. Third, low skilled labor shortage (housekeeping, construction workers, and etc.) is Singapore is a small country and less population. In the past, Singapore supported education that made most of people in country is high skilled labor (executive manager, or a specific professional branch, and etc.). When they didn’t have low labor, investor or industry must import low labor from China, India, Thailand, and etc. because low labors have skill about industry and cheaper wage than high labor. It is decrease the cost of production.
Standard of living is about Gross Domestic Product. GDP is indicating standard of living and well-being that made people have education, health care, and etc. GDP is to collect the taxes by import and export products to develop country. The effect to standard of living is Singapore less population; most of population are high skilled labor and small country not enough natural resource. The country has limited space and resources. When investors build factories to import low skilled labor to reduce production costs and import raw materials because Singapore has little natural raw materials. And people in Singapore have only high skill labor and workers need higher wages because Singapore is high living costs and require appropriate compensation level and people want to work on their own level that made people high level work or invest abroad to bring money into country. Thus, investors must import low skilled labor. When country has import more than export that affect with GDP because the country is no reserves money to spend and develop country.
In the present, Singapore is a country with advanced technology and focus on the service sector. Because there is less area and population, Singapore is unable to produce export products like another country. If Singapore wants to produce the product, they must import raw materials that made high investment costs thus, Singapore turn to promote the service and technology in the market of goods.