Singapore May Outdo Malaysia’s GDP
Rikvin provides Singapore Company Registration service including securing your Singapore Employment Pass and Singapore EntrePass Visa for Singapore Business Migration.
by Louis Horwitz Sunday, November 14, 2010
Both Singapore and Malaysia are anticipated to release their 2010 data by February the following year.
In a stark contrast to what Singapore’s former economic adviser, Alber Winsemius stated that the city-state is a “poor little market in a dark corner of Asia”, Singapore is the world’s easiest place to do business for 5 consecutive years according to World Bank, possesses the world’s second-busiest container port, and a home to the largest number of millionaires based on Boston Consulting Group.
Lee Hock Guan, a fellow senior member of the Institute of Southeast Asian Studies based in Singapore exclaimed, “Singapore is relentless in its economic growth,” as it moves up to another level, “to compete with the evolving world economy,” and thereby, realizing the varying market demands and investors’ interests.
Since its independence in 1965, Singapore did not look back except to find out just how far its economy has come—a 189-fold growth—giving a boost on its GDP per capita, totaling to US$36,537 from last year’s US$512.
Nevertheless, Malaysia, not understanding the significance of optimizing its human capital, has an economic expansion at one-third the rate since 1965 and had its GDP per capita of US$6,975 in 2009, breaking away from 1965’s GDP at US $335.
Nonetheless, Malaysia was not able to sustain its growth as it fell to 4.7% from 7.2% in the 1990s, the time when Mahathir Mohamad, its former prime Minister lured foreign manufacturers and constructed the world’s tallest twin towers and built sophisticated highways.
“Progress is similar to a marathon with its policies gearing toward sustainability and continuity,” remarked Thomas Lam of OSK-DMG, a business venture between Deutsche Bank AG and OSK Holdings Bhd, “Malaysia’s economic run is like a 100-meter dash,” it manifested remarkable initial output, “but it failed to cope up with the continuous progress in the race.”
Meanwhile, Singapore invested much effort on its growth, taking down notes on its lesson learned, that economic development is not a natural occurrence.
“This is where the free marketers are enlightened with Singapore,” beamed Ravi Menon, a senior official at the Ministry of Trade and Industry, “that the government actively participates in guiding the development process, and intervenes the markets”, especially if such intervention can lead to lucrative outcomes.
As an instance, after successfully attracting large pharmaceutical firms like Phizer and Novartis AG, the government invested $500 million in its Biopolis Biomedical Research platform.
Further, the IRAS mitigated its corporate taxes by 9 percentage points since 2005, resulting in 17%, compared with Malaysia’s 25%.
In pursuit of coping with the economic race, Malaysia employed economic transformation program in September the current year, seeking to attract investments such as US$444 billion-worth of program ranging from nuclear power to mass rail spearheaded by government-owned and private companies.
In the Ease of Doing Business initiated by the International Finance Corporation that takes into account indicators like access to credit, labor laws, taxes, property rights and regulations on customs and licenses, Singapore fares impressively in almost all benchmarks including trading across borders.
Malaysia, on the same report, finished at 21st, 2 steps up from the previous year.
About the Publisher:
Since 1998, Rikvin consultancy has been providing highly professional company incorporation services, both in attractive standard packages as well as customised services. Online incorporation being a hallmark service, other services of Rikvin include Singapore Corporate Tax, Offshore Incorporation, EntrePass, Singapore Employment Pass, Personalised work Pass application, GST Registration, Singapore Accounting Services, Tax Planning & Consulting, and Business Plan Drafting.
Rikvin has helped thousands of clients obtain their Singapore Business Registration and employment passes. Singapore Employment Pass (EP) is the main type of Singapore work visa issued to foreign professional employees, managers, and owners/directors of a Singapore company. Refer to Singapore Personalised Employment Pass for more detailed information.
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