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Write 4 page essay on the topic Singapore Model.Singapore’s description of state capitalism is that the government has controlling shares in various public corporations and issue funding through the
Write 4 page essay on the topic Singapore Model.
Singapore’s description of state capitalism is that the government has controlling shares in various public corporations and issue funding through the sovereign wealth fund (SWF). The SWF is state-owned capital funds used for real and financial asset investments in stocks, bonds or other alternative ventures. The funds are applied universally from export revenues or foreign exchange reserves in the custody of the central bank. Considering this, Singapore attracts multinational organizations to take the global SWF benefits. The country also imposes business friendly regulations that favor the establishment of multinational organizations. The Singapore’s capitalism Model incorporates the private and public-owned companies towards an overall contribution to the economy (Tajuddin 54). The availability of the SWF has enhanced domestic investment in which the local industries are capable of manufacturing large-scale production. As a result, the state-owned companies transform into global enterprises that serve other regions with quality products. It is apparent that the SWF contribute to government social spending without raising taxes because they represent the budgetary surplus owned by the central bank. Similarly, the SWF does not have international debts accrued from government borrowing. The country creates SWF in order to boost economic activities inspired to promote the state-owned enterprises. Singapore depends on services and manufacturing exports, with little government interference.