They were once an example of poverty, and today they are one of the wealthiest places on Earth.
Singapore, often called the island-city-state, is quite a small country. However, size didn’t matter much to the country itself, nor to the man who completely transformed it. Lee Kuan Yew, former authoritarian leader of Singapore, is widely known as the man who built the Singapore we know today. And what is today’s Singapore like?
It is one of the richest places on the planet, with an economy, employment rate, and life expectancy higher than many developed and far larger countries. So, how did this small island country achieve that?
Singapore gained its independence in 1965. Until then, it was just an ordinary United Kingdom (UK) colony. That year marked a turning point for the country’s economy. From a colony, it became a significant financial and industrial center. But other countries tried that too, so why did Singapore succeed?
According to most analysts, the reason lies in the fact that Singapore focused more than any other Asian country on economic freedom. Such a degree of freedom was possible due to low taxes, the absence of major capital restrictions, and favorable immigration policies.
In addition, online banking and brokerage platforms such as Liteforex enjoy that same freedom, with growing benefits day by day.
Starting a business in Singapore
The myth that a business can be started in Singapore in just a few hours is actually not a myth. Enthusiasts claim that you can start your own company in less than 3 hours. The maximum time is estimated at around 4 weeks.
However, most sources state that if you have all the necessary documentation ready, you can become the director of your new company in just one day. It’s no surprise, then, that many start-up companies begin precisely in Singapore, move there, or open their headquarters there.
Steps toward success
Of course, Singapore didn’t become rich overnight. As mentioned, Lee Kuan Yew played a key role in transforming the country. How did he do it? The government he led was crucial for economic development. State funds were directed into domestic sectors such as banking, shipbuilding, electronics, and the like. At the same time, basic human needs – healthcare and housing – were taken into account. Yew designed the laws to attract multinational companies. Along with proper labor laws and overall stability, this laid the foundation for a very mature economy. In short, Singapore had a leader and a government that truly wanted to build a better country – something rare in many states.
Housing policies
At first, Singapore was the country with the highest concentration of slums in the world, due to overpopulation. However, thanks to the housing policies quickly introduced by the Housing and Development Board, the situation drastically changed.
Citizens were enabled to leave those settlements and move into planned housing units. This gave them better living conditions, which positively affected their productivity and overall health.
That, in turn, improved work efficiency and further boosted the economy. People could now take better care of themselves, which made it easier for them to find employment and strengthened economic progress.
Development of the technology sector
Singapore invested significantly in the technology sector and, over time, became a regional hub collaborating with international companies. The government encouraged free trade, opening numerous opportunities for foreign investment, often from major corporations.
Singapore also became a regional center for Forex trading. All this significantly contributed to the country’s GDP.
Clean government
One of the key factors of success was the fight against corruption. After gaining independence, Singapore was one of the most corrupt countries in the world. Poverty was a direct consequence of that.
Lee Kuan Yew decided to change that – and he succeeded. Today, Singapore is among the 10 countries with the least corruption. All economic and financial policies are directed toward preserving stability and avoiding political turmoil.
Thanks to that, funds didn’t end up in private pockets but were used to lift citizens out of poverty and develop the country. The minimum wage is enough for a decent life, and the system functions with broad social support.
Conclusion
Singapore has become a safe haven for people from all over the world. Although many Singaporeans temporarily leave the country for better opportunities, most return and contribute to the economy. One of the most well-known examples is the CEO of Razer, Min-Liang Tan, who heavily invested in his homeland during the pandemic.
The anti-corruption policy and focus on the citizens contributed to the creation of a society in which everyone has a chance for a dignified life.
The mindset of Lee Kuan Yew remains present in both the government and society. That is precisely the foundation of the stable and successful economy that Singapore has today.
Singapore was not always rich, but thanks to the vision of its leaders and the focus on the well-being of its people, it became so.
