PEST OF SINGAPORE.

POLITICAL ASPECTS:
Another key component of Singapore attractiveness was its steady political climate, since this gave companies the assurance they needed to make long term investments, the impact on the economy was exponentially positive, allowing Singapore from 1965 to 1973 reach double digit growth GDP annually. The increase in income allowed the government to establish a subsidy system for education, health services, housing and public transportation, all of previous ones helped the government decrease the unemployment rate to record levels. To this day Singapore has only had three prime ministers through its entire history as a nation, this has allowed a tight control on the state assets and a fast execution of the government policies. A state capitalism model is applied, most of the companies in the local economy are government control and this has helped make Singapore a corruption free nation since there are no gaps between leadership. Singapores political system can be mainly described as a Socialist Democracy, Singapore as a nation has been controlled by a single party during its entire history. This small country has become one of the worlds leading economies due to its strategic location and its visionary leaders. Since Singapore is located on the main sea route between China and India With an aggressive program of incentives to promote foreigner investment in an export oriented labor intensive industry This allowed them to attract so many investments that by 1972 foreign owned companies represented one quarter of all manufacturing firms in the country. Another key component of Singapore attractiveness was its steady political climate, since this gave companies the assurance they needed to make long term investments, the impact on the economy was exponentially positive, allowing Singapore from 1965 to 1973 reach double digit growth GDP annually. Singapores economic system is a bit complex; in one part the country has successfully adapted an open market economy in which their decisions of how much to invest, produce and distribute are determined by the law of demand and supply. Also it has an open business environment that continues to seek foreign investment, A state capitalism model is applied, most of the companies in the local economy are government control and this has helped make Singapore a corruption free nation since there are no gaps between leadership. Also, the Economic Development Act, forces the Singapore government may be the major shareholder of a company, but he will never interfere with the management unless a risk for their investment is suspected. An example of this type of initiatives could be their role in Singapore Airlines, where they hold close to 60% of the total shares of the company, they are

ECONOMICAL ASPECTS:

extremely successful, since they are government owned, but not government controlled. It is important to reflect that Singapore currently holds the 2nd place in the global Freedom Economy Ranking, this index ranks 4 main components; The Rule of Law, Limited Government, Regulatory Efficiencies and Open Markets.

SOCIAL ASPECTS:
To this date there are roughly a little bit more than 5 million Singaporeans, of which only half a million are Singapore permanent residents. This is an excellence oriented, multiethnic society conformed by Chinese (77%), Malays (14%), Indians (7%) and others (2%), due to this factor of identity the leadership of the country calls up for a Rugged Individualism with an emphasis of excellence. Singapore has a multiethnic and multi religious society, because of this it promotes and equalitarian system that provides health, education and housing access despite your race or gender, they are consistent when it comes to choosing representation in congress. The social norms in Singapore are very important to understand, people are ambitious and there is a materialistic culture embedded in society, largely portrayed by the five Cs (Condo, Cars, Credit card, Country Club importance) but you have to be careful not to generalize, in spite of this materialistic culture, family is regarded as the first and up-mots priority in a Singaporeans life. Community is also important and forms a part of the citizens precedence. So you may express it the following way; a Singaporean likes to work hard and indulge himself with material goods, but he wouldnt sacrifice his personal wellbeing to achieve this. Nation before community and society above self. Family as the basic unit of society. Community support and respect for the individual. Consensus not conflict. Racial and religious harmony. This promotes high degree of honesty, discipline and hardworking orientation for the Singaporean people, they treasure collectivism and racism is not tolerated under any situation circumstances. In 1978 the governments long term economic strategy changed from training their people for manufacturing intensive labor to a technology intensive labor, their aim was to attract high value-added industries such as the Information technology sector; by 1989 Singapore had become the worlds largest disk drives producers, they owed 30% of their GDP to this industry alone.

TECNOLOGICAL ASPECTS:

CONLUSION:
After looking at the different institutions we can infer that the role of the government into the business affairs in Singapore is that of a promoter of equality and welfare for all its citizens, due to its dominant role in the local

economy, corporate social responsible initiatives are common within different private and public owned companies. Singapores history, geographic location, unique cultural blend and its strong institutions have made the country particular business dynamic to evolve and reinvent itself through time. There appears to be high level of control on behalf of the state but at the same time a wide and welcoming playing field for all foreign investors, the rules are clear and if respected you can trust that commitments will be held. Society is open and respectful, they appreciate material possessions but their main priority lays on their family and community welfare. Typical directive leadership has been influenced by international management practices, making national firms work with a more collaborative style, people are hard-working and task and people oriented (depending on the industry) . It is hard to define Singapore under a few single attributes although they share a common land, respect for government and community and the understanding that their behavior will impact the economic future of their country.