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Singapore dollar
新加坡元 (Chinese) Dolar Singapura (Malay) சிங்கப்பூர் வெள்ளி (Tamil)
ISO 4217 code	SGD
Monetary authority	Monetary Authority of Singapore
Website	www.mas.gov.sg
User(s)	Singapore  Brunei
Inflation	4.6%
Source	The World Factbook, 2011 est.
Pegged by	Brunei dollar at par
Subunit
1/100	cent
Symbol	S$
Nickname	Sing
Coins
Freq. used	5, 10, 20, 50 cents, $1
Rarely used	1 cent (not issued anymore but still usable), $5
Banknotes
Freq. used	$2, $5, $10, $50, $100 & $1,000
Rarely used	$20, $25, $10,000
Mint	Singapore Mint
Website	www.singaporemint.com

The Singapore dollar or Dollar (sign: $; code: SGD) is the official currency of Singapore. It is normally abbreviated with the dollar sign $, or alternatively S$ to distinguish it from other dollar-denominated currencies. It is divided into 100 cents.

History[link]

Between 1845 and 1939, Singapore used the Straits dollar.^[1] This was replaced by the Malayan dollar,^[1] and, from 1953, the Malaya and British Borneo dollar, which were issued by the Board of Commissioners of Currency, Malaya and British Borneo.^[1]

Singapore continued to use the common currency upon joining Malaysia in 1963^[1] but, two years after Singapore's expulsion and independence from Malaysia in 1965, the monetary union between Malaysia, Singapore and Brunei broke down.^[1] Singapore established the Board of Commissioners of Currency, Singapore, on April 7, 1967^[2] and issued its first coins and notes.^[1] Nevertheless, the Singapore dollar was exchangeable at par with the Malaysian ringgit until 1973,^[1] and interchangeability with the Brunei dollar is still maintained.^[1]

Initially, the Singapore dollar was pegged to the British pound sterling at a rate of S$60 = £7. This peg lasted until the demise of the Sterling Area in the early 1970s, after which the Singapore dollar was linked to the US dollar for a short period of time. As Singapore's economy grew and its trade links diversified to many other countries and regions, Singapore moved towards pegging its currency against a fixed and undisclosed trade-weighted basket of currencies from 1973 to 1985. From 1985 onwards, Singapore adopted a more market-oriented exchange regime – classified as a Monitoring Band – in which the Singapore dollar is allowed to float (within an undisclosed bandwidth of a central parity) but closely monitored by the Monetary Authority of Singapore (MAS) against a concealed basket of currencies of Singapore's major trading partners and competitors. This in theory allows the Singaporean government to have more control over imported inflation and to ensure that Singapore's exports remain competitive. All issued Singapore dollar currency in circulation is fully backed by international assets to maintain public confidence.^[3] The foreign reserves officially stand at over US$230 billion - as of May 2011.

Prior to 1970, the various monetary functions associated with a central bank were performed by several government departments and agencies. As Singapore progressed, the demands of an increasingly complex banking and monetary environment necessitated streamlining the functions to facilitate the development of a more dynamic and coherent policy on monetary matters. Therefore, parliament passed the Monetary Authority of Singapore Act in 1970, leading to the formation of MAS on 1 January 1971. The MAS Act gave the MAS the authority to regulate all elements of monetary, banking, and financial aspects of Singapore. On 31 March 2003, the Board of Commissioners of Currency Singapore (BCCS) merged with the Monetary Authority of Singapore (MAS), which took over the responsibility of banknote issuance.^[4]

Coins[link]

In 1967, the first series of coins was introduced in denominations of 1, 5, 10, 20 and 50 cents and 1 dollar. Except for the bronze 1 cent, these coins were struck in cupro-nickel. In 1985, a second series of coins was introduced in the same denominations. The sizes of the coins were reduced (most substantially for the larger denominations) and the 5 cents was struck in aluminium-bronze. In 1987, the 1 dollar coin was further reduced in size and switched to being struck in aluminium-bronze.

The current series of coins feature the Coat of Arms of Singapore on the obverse, and a floral theme on the reverse. This series was designed by Christopher Ironside.

Note:

• 6.81 million 1 cent coins are in circulation as of 1 December 2006, but are no longer issued since 2003.
• 5.86 million 5 cent coins are still in circulation as of 1 December 2006, but are no longer issued.

Banknotes[link]

Early series[link]

On June 12, 1967, the first series of notes, known as the Orchid series, was introduced in denominations of $1, $5, $10, $50, $100 & $1000. $25 & $500 notes were introduced on August 7, 1972,^[4] followed by $10,000 on January 29, 1973.^[4] Between 1976 & 1980, the Bird series was introduced, including a $20 note introduced on August 6, 1979. This series did not include a $25 note. The Ship series was introduced between 1985 & 1989 in the same denominations except for the absence of a $20 note. $2 notes were introduced on January 28, 1991.^[4]

The latest (portrait) series[link]

The current Portrait series was introduced in 1999, with the 1 and 500 dollar denominations omitted. These notes feature the face of Yusof bin Ishak, the first president of the Republic of Singapore, on the obverse, and the reverse depicts a feature of civic virtue. There are both paper and polymer notes in circulation. The designs of the polymer notes are very similar to the corresponding paper note except for the slightly slippery feel and a small transparent window design in the corner of the banknote. Polymer notes are progressively replacing the paper banknotes in circulation. The notes also have Braille patterns at the top right-hand corner of the front design.

The S$10,000 and B$10000 note are the world's most valuable banknote (that is officially in circulation). As of August 2011, it is worth over six times as much as the next most valuable, the 1000 Swiss franc note.^{[citation needed]} The most valuable legal tender banknote is the US$10,000 note.

Commemorative banknotes[link]

Commemorative banknotes are also released, usually in limited quantities. The first commemorative banknote was released on 24 July 1990, to celebrate the 25th anniversary of Singapore's independence. On December 8, 1999, to celebrate the coming 2000 millennium, 3 million $2 millennium notes were circulated. The note is similar to the $2 portrait series, except that the prefix of the serial number is replaced with a Millennium 2000 logo. These millennium notes are printed on paper as polymer notes were not introduced yet then.

Wikinews has related news: Singapore and Brunei issue joint banknote

On 27 June 2007, to commemorate 40 years of currency agreement with Brunei, a commemorative S$20 note was launched; the back is identical to the Bruneian $20 note launched simultaenously.^[5] A circulation version of the $20 note can be exchanged at banks in Singapore beginning July 16, 2007, limited to two pieces per transaction.

Trivia[link]

• The $10000 note is one of the world's largest single notes in terms of real value.
• The S$1 coin is made to look like a Ba Gua, a traditional Chinese symbol used in Taoist ceremonies.

See also[link]

• Economy of Singapore

References[link]

External links[link]

Wikinews has related news: Singapore and Brunei issue joint banknote

• Monetary Authority of Singapore, The Singapore Currency

Coordinates: 1°18′N 103°48′E / 1.3°N 103.8°E / 1.3; 103.8 Republic of Singapore 新加坡共和国 (Chinese) Republik Singapura (Malay) சிங்கப்பூர் குடியரசு (Tamil) Flag Coat of arms Motto:  "Majulah Singapura"  (Malay) "Onward, Singapore" Anthem: Majulah Singapura "Onward, Singapore" Location of  Singapore  (green) in ASEAN  (dark grey)  —  [Legend] Capital Singapore (Downtown Core, Central)1 1°17′N 103°50′E / 1.283°N 103.833°E / 1.283; 103.833 Official language(s) English Malay Chinese Tamil Official scripts Latin alphabet Simplified Chinese Tamil script Demonym Singaporean Government Unitary parliamentary republic  -  President Tony Tan Keng Yam  -  Prime Minister Lee Hsien Loong  -  Speaker of Parliament Michael Palmer  -  Chief Justice Chan Sek Keong Legislature Parliament Formation  -  Founding 6 February 1819[1]   -  Self-government 3 June 1959[2]   -  Independence from the United Kingdom 31 August 1963[3]   -  Merger with Malaysia 16 September 1963[3]   -  Separation from Malaysia 9 August 1965[3]  Area  -  Total 710 km2 (189th) 274 sq mi   -  Water (%) 1.444 Population  -  2011 census 5,183,700 (of whom 3,257,000 are Singapore citizens)[4]   -  Density 7,315[5]/km2 (3rd) 18,943/sq mi GDP (PPP) 2011 estimate  -  Total $314.911 billion[6] (38th)  -  Per capita $59,711[6] (3rd) GDP (nominal) 2011 estimate  -  Total $259.849 billion[6] (38th)  -  Per capita $49,270[6] (13th) Gini (2009) 47.8[7] (29th) HDI (2011) 0.846[8] (very high) (26th) Currency Singapore dollar (SGD) Time zone SST (UTC+8) Date formats dd/mm/yyyy Drives on the left ISO 3166 code SG Internet TLD .sg Calling code +65 1 Singapore is a city-state. This article contains Chinese text. Without proper rendering support, you may see question marks, boxes, or other symbols instead of Chinese characters. This article contains Indic text. Without proper rendering support, you may see question marks or boxes, misplaced vowels or missing conjuncts instead of Indic text.

Singapore (ⁱ/ˈsɪŋəpɔər/ SI-ngə-pohr), officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, 137 kilometres (85 mi) north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the Singapore Strait to its south. Singapore is highly urbanised but almost half of the country is covered by greenery. More land is being created for development through land reclamation.

Singapore had been a part of various local empires since it was first inhabited in the second century AD. Modern Singapore was founded as a trading post of the East India Company by Sir Stamford Raffles in 1819 with permission from the Sultanate of Johor. The British obtained full sovereignty over the island in 1824 and Singapore became one of the British Straits Settlements in 1826. Singapore was occupied by the Japanese in World War II and reverted to British rule after the war. It became internally self-governing in 1959. Singapore united with other former British territories to form Malaysia in 1963 and became a fully independent state two years later after separation from Malaysia. Since then it has had a massive increase in wealth, and is one of the Four Asian Tigers. The economy depends heavily on the industry and service sectors. Singapore is a world leader in several areas: It is the world's fourth-leading financial centre, the world's second-biggest casino gambling market, and the world's third-largest oil refining centre. The port of Singapore is one of the five busiest ports in the world, most notable for being the busiest transshipment port in the world. The country is home to more US dollar millionaire households per capita than any other country. The World Bank notes Singapore as the easiest place in the world to do business. The country has the world's third highest GDP PPP per capita of US$59,936, making Singapore one of the world's wealthiest countries.

Singapore is a parliamentary republic with a Westminster system of unicameral parliamentary government. The People's Action Party (PAP) has won every election since the British grant of internal self-government in 1959. The legal system of Singapore has its foundations in the English common law system, but modifications have been made to it over the years, such as the removal of trial by jury. The PAP's popular image is that of a strong, experienced and highly qualified government, backed by a skilled Civil Service and an education system with an emphasis on achievement and meritocracy; but it is perceived by some voters, opposition critics and international observers as being authoritarian and too restrictive on individual freedom.

Some 5 million people live in Singapore, of whom 2.91 million were born locally. Most are of Chinese, Malay or Indian descent. There are four official languages: English, Chinese, Malay and Tamil. One of the five founding members of the Association of South East Asian Nations, Singapore also hosts the APEC Secretariat, and is a member of the East Asia Summit, the Non-Aligned Movement, and the Commonwealth.

Etymology[link]

The English name of Singapore is derived from the Malay word Singapura (Sanskrit: सिंहपुर, lit. Lion City), hence the customary reference to the nation as the Lion City. Lions probably never lived there; the beast seen by Sang Nila Utama, who founded and named ancient Singapore, was most likely a tiger.^[9][10]

History[link]

Victorious Japanese troops marching through Singapore City after British capitulation at the Battle of Singapore

The earliest known settlement on Singapore was in the second century AD. It was an outpost of the Sumatran Srivijaya empire, named Temasek ("sea town"). Between the 16th and early 19th centuries, it was part of the Sultanate of Johor. In 1613, Portuguese raiders burnt down the settlement and the island sank into obscurity for the next two centuries.^[11]

In 1819, Thomas Stamford Raffles, founder of Singapore, arrived and signed a treaty with Sultan Hussein Shah on behalf of the British East India Company to develop the southern part of Singapore as a British trading post. In 1824, the entire island became a British possession under a further treaty whereby the Sultan and the Temenggong transferred it to the British East India Company. In 1826, it became part of the British Straits Settlements, becoming its capital in 1836.^[12] Before Raffles arrived, there were around 1,000 people living in Singapore, mostly Malays and a few dozen Chinese.^[13] By 1869, due to migration from Malaya and other parts of Asia, Singapore's population had reached 100,000. Many Chinese and Indian immigrants came to Singapore to work in the rubber plantations and tin mines, and their descendents later formed the bulk of Singapore's population.^[14]

During World War II, the Imperial Japanese Army invaded Malaya culminating in the Battle of Singapore. The British were defeated, and surrendered on 15 February 1942. British Prime Minister Winston Churchill called this "the worst disaster and largest capitulation in British history".^[15] The Sook Ching massacre of ethnic Chinese after the fall of Singapore claimed between 5,000 and 25,000 lives.^[16] The Japanese occupied Singapore until the British repossessed it in September 1945 after the Japanese surrender.^[17]

Singapore's first general election in 1955 was won by the pro-independence David Marshall, leader of the Labour Front. Demanding complete self-rule he led a delegation to London but was turned down by the British. He resigned when he returned and was replaced by Lim Yew Hock, whose policies convinced Britain to grant Singapore full internal self-government for all matters except defence and foreign affairs.^[18]

During the May 1959 elections, the People's Action Party won a landslide victory. Singapore had become an internally self-governing state within the Commonwealth, with Lee Kuan Yew as the first Prime Minister.^[19] Governor Sir William Allmond Codrington Goode served as the first Yang di-Pertuan Negara, and was succeeded by Yusof bin Ishak who in 1965 became the first President of Singapore.^[20] During the 1950s, Singapore started to face a Communist threat which lasted till the early 1970s. The Communists, mostly supported by the Chinese-speaking group, with strong ties to the trade unions and Chinese schools, carried out an armed struggle against the state, resulting in the Malayan Emergency and later, the Communist Insurgency War. The 1954 National Service Riots, Chinese middle schools riots and Hock Lee bus riots in Singapore were all linked to the Communists ^[21]

On 31 August 1963, Singapore declared independence from Britain and joined with Malaya, Sabah and Sarawak to form the new Federation of Malaysia as the result of the 1962 Merger Referendum. Singaporean leaders joined Malaysia for various reasons. Firstly, as a small country, they did not believe that the British would find it viable for Singapore to become independent by itself. Secondly, they also did not believe that Singapore could survive on its own, due to scarcity of land, water, markets and natural resources. And lastly, the Singapore government wanted the help of the Malaysian government to flush out the Communists. The two years that Singapore spent as part of Malaysia were filled with strife and bitter disagreements. The Malaysians insisted on a pro-Malay society, where Malays were given special Bumiputera rights, which still exists to this day. The Malaysians were also suspicious about Singapore's majority of ethnic Chinese and worried that Singapore's economic clout would shift the centre of power from Kuala Lumpur to Singapore. There were also linguistic and religious issues. The Singaporeans, on the other hand, wanted an equal and meritocratic society, where all citizens were given equal rights. As part of Malaysia, Singapore's economic and social development came to a halt as the Malaysian parliament blocked many bills. Race riots broke out in Singapore in 1964. After much heated ideological conflicts between the two governments, in 1965, the Malaysian parliament voted 126 to 0 to expel Singapore from Malaysia.^[3][22][23]

Singapore gained independence as the Republic of Singapore (remaining within the Commonwealth) on 9 August 1965^[3] with Yusof bin Ishak as president and Lee Kuan Yew as prime minister. Every one who was present in Singapore on the date of independence was offered Singapore citizenship. In 1967, it helped found the Association of Southeast Asian Nations^[24] and in 1970 it joined the Non-aligned movement. In 1990, Goh Chok Tong succeeded Lee as prime minister. During his tenure the country faced the 1997 Asian Financial Crisis, the 2003 SARS outbreak and terrorist threats posed by Jemaah Islamiyah. In 2004, Lee Hsien Loong, the eldest son of Lee Kuan Yew, became the country's third prime minister.^[25]

Government and politics[link]

Singapore's Parliament House.

Singapore is a parliamentary republic with a Westminster system of unicameral parliamentary government representing constituencies. Its constitution establishes representative democracy as its political system.^[7] Freedom House ranks Singapore as "partly free" in its Freedom in the World report,^[26] and The Economist ranks Singapore as a "hybrid regime", the third rank out of four, in its "Democracy Index".^[27] Singapore is consistently rated one of the least corrupt countries in the world by Transparency International.^[28]

Executive power rests with the Cabinet, led by the Prime Minister, and the President.^[20] The president is elected through popular vote, and has some veto powers for a few key decisions such as the use of the national reserves and the appointment of judges, but otherwise occupies a ceremonial post.^[29]

The Parliament serves as the legislative branch of government.^[20] Members of Parliament (MPs) consist of elected, non-constituency and nominated members. Elected MPs are voted into parliament on a "first-past-the-post" (plurality) basis and represent either single-member or group-representation constituencies.^[30] The People's Action Party has won control of Parliament with large majorities in every election since self-governance was secured in 1959.^[26] However, in the most recent parliamentary elections in 2011, the opposition, led by the Workers' Party, made significant gains and increased its representation in the House to 6 elected MPs.^[31]

The legal system of Singapore is based on English common law, albeit with substantial local differences. Trial by jury was entirely abolished in 1970 leaving judicial assessment performed wholly by judgeship.^[32] Singapore has penalties that include judicial corporal punishment in the form of caning for rape, rioting, vandalism, and some immigration offences.^[33][34] There is a mandatory death penalty for murder, and for certain drug-trafficking and firearms offences.^[35] Amnesty International has said that some legal provisions conflict with the right to be presumed innocent until proven guilty, and that Singapore has "possibly the highest execution rate in the world relative to its population".^[36] The government has disputed Amnesty's claims.^[37] In a 2008 survey, international business executives believed Singapore, along with Hong Kong, had the best judicial system in Asia.^[38] In 2010, Singapore was ranked first for "access to civil justice" and "order and security" by the World Justice Project Rule of Law Index.^[39]

In Singapore, under the Public Order Act 2009, outdoor public processions or assemblies require police permits. Without police permits, such outdoor assemblies are illegal.^[40] Indoor assemblies, however, can be held freely without the need to apply for police permits.^[41] The only place in Singapore where outdoor public assemblies do not require police permits is at the Speakers' Corner which is modelled on Hyde Park, London. However, one must still register one's personal details with the National Parks Board online before speaking or protesting at the Speakers' corner, and there are also many CCTVs in the park, a situation that had some Singaporeans and Singaporean MPs complaining.^[42][43]

Geography[link]

Outline of Singapore and the surrounding islands & waterways

Singapore consists of 63 islands, including the main island, widely known as Singapore Island but also as Pulau Ujong.^[44] There are two man-made connections to Johor, Malaysia: the Johor–Singapore Causeway in the north, and the Tuas Second Link in the west. Jurong Island, Pulau Tekong, Pulau Ubin and Sentosa are the largest of Singapore's smaller islands. The highest natural point is Bukit Timah Hill at 166 m (545 ft).^[45]

There are ongoing land reclamation projects, which have increased Singapore's land area from 581.5 km² (224.5 sq mi) in the 1960s to 704 km² (272 sq mi) today; it may grow by another 100 km² (40 sq mi) by 2030.^[46] Some projects involve merging smaller islands through land reclamation to form larger, more functional islands, as with Jurong Island.^[47] About 23% of Singapore's land area consists of forest and nature reserves.^[48] Urbanisation has eliminated most primary rainforest, Bukit Timah Nature Reserve being the only significant remaining forest.^[47] There are more than 300 parks and 4 nature reserves in Singapore. There are also many trees planted, and almost fifty per cent of the country is covered by greenery. Because of this, Singapore is also commonly known as the 'Garden City'.^[49]

Singapore has a tropical rainforest climate with no distinctive seasons, uniform temperature and pressure, high humidity, and abundant rainfall. Temperatures usually range from 23 to 32 °C (73 to 90 °F). Relative humidity averages around 79% in the morning and 73% in the afternoon.^[50] April and May are the hottest months, with the wetter monsoon season from November to January.^[51] From July to October, there is often haze caused by bush fires in neighbouring Indonesia.^[52] Although Singapore does not observe daylight saving time, it follows time zone GMT+8, one hour ahead of its geographical location.^[53]

Economy[link]

The port of Singapore, one of the world's five busiest,^[56] with the skyline of Singapore in the background

Before independence in 1965, Singapore was the capital of the British Straits Settlements, a Crown Colony. It was also the main British naval base in East Asia.^[57] Because of its status as the main British naval base in the region, as well as hosting the largest dry dock in the world at that time in the form of the Singapore Naval Base, it was described in the press as the 'Gibraltar of the East'.^[58] The opening of the Suez Canal in 1869 caused global trade to boom, and Singapore became a major world trade node, and the Port of Singapore became one of the largest and busiest ports in the world.^[59] Before independence in 1965, Singapore had a GDP per capita of $511, then the third-highest in East Asia.^[60] After independence, foreign direct investment and a state-led drive for industrialisation based on plans by Goh Keng Swee and Albert Winsemius created a modern economy.^[61]

Today, Singapore has a highly developed market-based economy, based historically on extended entrepôt trade. Along with Hong Kong, South Korea and Taiwan, Singapore is one of the original Four Asian Tigers. The Singaporean economy is known as one of the freest,^[62] most innovative,^[63] most competitive,^[64] and most business-friendly.^[65] The 2011 Index of Economic Freedom ranks Singapore as the second freest economy in the world, behind Hong Kong. According to the Corruption Perceptions Index, Singapore is consistently ranked as one of the least corrupt countries in the world, along with New Zealand and the Scandinavian countries.

Singapore is the 14th largest exporter and the 15th largest importer in the world. The country has the highest trade-to-GDP ratio in the world at 407.9 percent, signifying the importance of trade to its economy. The country is currently the only Asian country to have AAA credit ratings from all three major credit rating agencies – Standard & Poor's, Moody's, and Fitch.^[66][67] Singapore attracts a lot of foreign direct investment because of its location, corruption-free environment, skilled workforce, low tax rates and advanced infrastructure. There are more than 7,000 multinational corporations from the United States, Japan, and Europe in Singapore. There are also 1,500 companies from China and 1,500 from India. Foreign firms are found in almost all sectors of the economy.^[7] Singapore is also the second largest foreign investor in India.^[68] Roughly 44 percent of the Singaporean workforce is made up of non-Singaporeans.^[69] Over ten free trade agreements have been signed with other countries and regions.^[70]

Singapore also possesses the world's tenth largest foreign reserves.^[71][72] The currency of Singapore is the Singapore dollar, issued by the Monetary Authority of Singapore.^[73] It is interchangeable with the Brunei dollar.^[74]

The Singaporean economy depends heavily on exports and refining imported goods, especially in manufacturing,^[75] which constituted 27.2% of GDP in 2010^[7] and includes significant electronics, petroleum refining, chemicals, mechanical engineering and biomedical sciences sectors. In 2006 Singapore produced about 10% of the world's foundry wafer output.^[76] Despite its small size, Singapore has a diversified economy, a strategy that the government considers vital for growth and stability.^[77]

Tourism also forms a large part of the economy, and 10.2 million tourists visited the country in 2007.^[78] To attract more tourists, in 2005 the government legalised gambling and allowed two casino resorts (called Integrated Resorts) to be developed.^[79] Singapore is promoting itself as a medical tourism hub: about 200,000 foreigners seek medical care there each year, and Singapore medical services aim to serve one million foreign patients annually by 2012 and generate USD 3 billion in revenue.^[80] Singapore is an education hub, and many foreign students study in Singapore. Singapore hosted over 80,000 international students in 2006.^[81] There are also more than 5000 Malaysians students who cross the Johor–Singapore Causeway every morning with hopes of receiving a better education in Singapore.^[82] In 2009, 20% of all students in Singaporean universities were international students. The students were mainly from ASEAN, China and India.^[83]

Singapore is a world leader in several economic areas: The country is the world's fourth leading financial centre,^[84] the world's second-biggest casino gambling market,^[85] one of the world's top three oil refining centres, the world's largest oil-rig producer, and a major ship-repairer.^[86][87][88] The port is one of the five busiest ports in the world.^[85] The World Bank has named Singapore as the easiest place in the world to do business^[85] and ranks Singapore the world's top logistics hub.^[89] It is also the world's fourth largest foreign-exchange trading centre after London, New York and Tokyo.^[90]

Singapore skyline

As a result of global recession and a slump in the technology sector, Singapore's GDP contracted by 2.2% in 2001. The Economic Review Committee was set up in December 2001 and recommended several policy changes to revitalise the economy. Singapore has since recovered, due largely to improvements in the world economy; the economy grew by 8.3% in 2004, 6.4% in 2005,^[91] and 7.9% in 2006.^[92] After a contraction of 0.8% in 2009, the economy recovered in 2010, with GDP growth of 14.5%.^[7] Most work in Singapore is in the service sector, which employed 2,151,400 people out of 3,102,500 jobs in December 2010. The percentage of unemployed economically active people above age 15 is about 2%.^[93]

Singapore has the world's highest percentage of millionaire households, with 15.5 percent of all households owning at least one million US dollars in net assets.^[94] Despite its relative economic success, Singapore does not have a minimum wage, believing that it would lower its competitiveness. It also has one of the highest income inequality levels among developed countries, coming in just behind Hong Kong and in front of the United States.^[95][96]

Acute poverty is rare in Singapore; the government has rejected the idea of a generous welfare system, stating that each generation must earn and save enough for its entire life cycle. There are, however, numerous means-tested 'assistance schemes' provided by the Ministry of Community Development, Youth and Sports in Singapore for the needy, including some that pay out SGD 400 to SGD 1000 per month to each needy household, free medical care at government hospitals, money for children's school fees, rental of studio apartments for SGD 80 a month, training grants for courses, etc.^[97][98][99]

Foreign relations[link]

Then Senior Minister Lee Kuan Yew and Ambassador to the U.S. Chan Heng Chee meet with Secretary of Defense William S. Cohen during Lee's visit in 2000

Singapore's foreign policy is directed to maintaining a secure environment in Southeast Asia as well as the surrounding territories. An underlying principle is political and economic stability in the region.^[70] It has diplomatic relations with 175 other sovereign states.^[100] As one of the five founding members of the Association of South East Asian Nations (ASEAN),^[101] the country is a strong supporter of the ASEAN Free Trade Area and the ASEAN Investment Area, because Singapore's economic growth is closely linked with the economic progress of the region as a whole. Former Prime Minister Goh Chok Tong proposed the formation of an ASEAN Economic Community, a step beyond the current AFTA bringing it closer to a common market. This idea was agreed to in 2007 for implementation by 2015. Other regional organisations are also important to Singapore, and it is the host of the APEC Secretariat. Singapore also maintains membership in other regional organisations, such as Asia-Europe Meeting, the Forum for East Asia-Latin American Cooperation, and the East Asia Summit.^[70] It is also a member of the Non-Aligned Movement^[102] and the Commonwealth.^[103]

In general, bilateral relations with other ASEAN members are strong; however, disagreements have arisen,^[70] and relations with neighbouring Malaysia and Indonesia have historically been very strained and difficult.^[104] Malaysia has often clashed with Singapore over the delivery of fresh water to Singapore,^[105] and the Singaporean government has threatened to send troops into Malaysia should the Malaysians break water contracts signed with Singapore and unilaterally cut off the water supply to Singapore.^[106] Conflicts have also arisen over the Singapore Armed Forces entering Malaysian airspace, the sovereignty of Pedra Branca, the relocation of Tanjong Pagar railway station, and many other ideological and cultural issues.^[104] Border issues exist with both Malaysia and Indonesia, and both have banned the sale of marine sand to Singapore over disputes about Singapore's land reclamation.^[107] Some previous disputes have been resolved by the International Court of Justice. Piracy in the Malacca Strait has been a cause of concern for all three countries.^[105] Close economic ties exist with Brunei, and the two share a pegged currency value.^[108]

Singapore and the United States share a long-standing and strong relationship, in particular in defence, the economy, health and education. The U.S. was Singapore's third largest trading partner in 2010, behind the People's Republic of China and the European Union.^[109] The two countries have a free-trade agreement signed in 2003.^[110] Singapore routinely hosts American ships and American fighter aircraft. More than 100 American Navy warships call at Singapore annually, and there is a modest presence of less than 200 US military personnel based permanently in Singapore. Several naval bases in Singapore were built to US specifications, so as to allow American ships, especially carriers, to dock. In 2011, the US Navy announced plans to station several of its new Littoral combat ships in Singapore permanently.^[111][112] Singapore also signed 'The Strategic Framework Agreement for a Closer Cooperation Partnership in Defence and Security' with the United States in 2005. The agreement gives a formal structure to addressing existing and future areas of bilateral security and defence cooperation. ^[113]

The Singapore government believes that regional security, and by extension Singapore's security, will be affected if the United States loses its resolve in Iraq.^[114] Singapore faces the threat of terrorism itself, as evidenced by the Singapore embassies attack plot. Singapore has pushed regional counter-terrorism initiatives, with a strong resolve to deal with terrorists inside its borders. To this end it has given support to the US-led coalition to fight terrorism, with bilateral cooperation in counter-terrorism and counter-proliferation initiatives, and joint military exercises. Relations with the United States have expanded in other areas, and the two countries take part in joint policy dialogues.^[70]

Relations with the People's Republic of China were established in the 1970s, and since then the two countries have enjoyed a strong relationship, being major players in strengthening the ASEAN–China relationship.^[115] Singapore has also co-created the Sino-Singapore Tianjin Eco-city and Suzhou Industrial Park in China. Singapore sees the United States as a counterweight to balance China's rise in the region, and has encouraged more American involvement and presence in the region to maintain peace and security.^[110]

Military[link]

CARAT SINGAPORE 2010, Republic of Singapore Navy's RSS Steadfast and RSS Vigilance sailing line-abreast.

The Singaporean military is arguably the most technologically advanced in Southeast Asia.^[116] It comprises the Army, Navy, and Air Force.^[7] It is seen as the guarantor of the country's independence.^[117] The nation's philosophy of defence is one of diplomacy and deterrence.^[118] This principle translates into the culture, involving all citizens in the country's defence.^[119] The government spends 4.9% of the country's GDP on the military^[7] and one out of every four dollars of government spending is spent on defence.^[120]

On independence, Singapore had two infantry regiments commanded by British officers. This force was considered too small to provide effective security to the new country, so the development of the military became a priority. Britain pulled its military out of Singapore in October 1971, leaving behind only a small British, Australian and New Zealand force as a token military presence. The last British soldier left Singapore in March 1976. New Zealand troops were the last to leave, in 1989.^[121][122]

The Singaporean army was initially established with help from Britain and Israel, a country that is not recognised by neighbouring Islamic Malaysia, Indonesia or Brunei.^{[123][124][125]} The main fear after independence was an invasion by Malaysia and/or Indonesia. Israel Defense Forces commanders were tasked with creating the Singapore Armed Forces from scratch, and Israeli instructors were brought in to train Singaporean soldiers. Military courses were conducted according to the Israel Defense Forces' format, and Singapore adopted a system of conscription and reserve service based on the Israeli and Swiss models, which remain in effect.^[122] Singapore still maintains strong security ties with Israel and is one of the biggest buyers of Israeli arms and weapons systems.^[126] The MATADOR is one example of recent Singapore-Israeli collaboration.^{[citation needed]}

The SAF is being developed to respond to a wide range of issues, in both conventional and unconventional warfare. The Defence Science and Technology Agency is responsible for procuring resources for the military.^[118] The geographic restrictions of Singapore mean that the SAF must plan to fully repulse an attack, as they can not fall back and re-group. The small size of the population has also affected the way the SAF has been designed, with a small active force but a large number of reserves.^[119]

Republic of Singapore Air Force's F-15SG Strike Eagle (Peace Carvin V) training detachment at Mountain Home Air Force Base.

Singapore has conscription for all able-bodied males at age 18, except those with a criminal record or who can prove that their loss would bring hardship to their families. Males who have yet to complete pre-university education or are awarded the Public Service Commission scholarship can opt to defer their draft. Though not required to perform military service, the number of women in the SAF has been increasing: since 1989 they have been allowed to fill military vocations formerly reserved for men. Before induction into a specific branch of the armed forces, recruits undergo at least 9 weeks of basic military training.^[127]

Because of the scarcity of open land on the main island, training involving activities such as live firing and amphibious landings is often carried out on smaller islands, typically barred to civilian access. This also avoids risk to the main island and the city. However, large-scale drills are considered too dangerous to be performed in the area, and since 1975 have been performed in Taiwan.^[127] Training is also held in about a dozen other countries. In general, military exercises are held with foreign forces once or twice per week.^[119]

Due to airspace and land constraints, the Republic of Singapore Air Force (RSAF) maintains a number of overseas bases in Australia, the United States, and France. The RSAF's 130 Squadron is based in RAAF Base Pearce, Western Australia,^[128] and its 126 Squadron is based in the Oakey Army Aviation Centre, Queensland.^[129] The RSAF has one squadron – the 150 Squadron – based in Cazaux Air Base in southern France.^[130][131] The RSAF also has a few overseas detachments in the United States, in San Diego, California, Marana, Arizona, Grand Prairie, Texas and Luke Air Force Base, among others.^[132][133]

The SAF has sent forces to assist in operations outside the country in areas such as Iraq^[134] and Afghanistan,^[135] in both military and civilian roles. In the region, it has helped stabilise East Timor and has provided aid to Aceh in Indonesia following the 2004 Indian Ocean earthquake and tsunami. The SAF also helped in relief efforts during Hurricane Katrina.^[136] Singapore is part of the Five Power Defence Arrangements, a military alliance with Australia, Malaysia, New Zealand, and the United Kingdom.^[119]

Demographics[link]

High-rise HDB flats and condominiums overlooking Bishan Park

As of 2011^[update], the population of Singapore is 5.18 million people, of whom 3.25 million (63%) are citizens while the rest (37%) are permanent residents or foreign workers. Twenty-three percent of Singaporean citizens were born outside Singapore i.e. foreign born citizens. There are half a million permanent residents in Singapore in 2011. The resident population does not take into account the 11 million transient visitors who visit Singapore annually.^{[4][137][138]}

The median age of Singaporeans is 37 years old and the average household size is 3.5 persons. Due to scarcity of land, four out of five Singaporeans live in subsidised, high-rise, public housing apartments known as Housing and Development Board (HDB) flats, after the board responsible for public housing in the country.^[139] In 2010, three quarters of Singaporean residents live in properties that are equal to or larger than a four room HDB flat or in private housing. Home ownership rate is at 87.2%.^[140][141] Mobile phone penetration rate is extremely high at 1,400 mobile phone subscribers per 1000 people. Around 1 in 10 residents owns a car.^[138]

The total fertility rate is estimated to be .78 children per woman in 2012, the lowest in the world and well below the 2.1 needed to replace the population.^[7] To overcome this problem, the Singapore government has been encouraging foreigners to immigrate to Singapore for the past few decades. The large number of immigrants has kept Singapore's population from declining.^[142] Singapore traditionally has one of the lowest unemployment rate among developed countries. Singaporean unemployment rate has not exceeded 4% in the past decade, hitting a high of 3% during the 2009 global financial criss and falling to 1.9% in 2011.^[143][144]

As of 2009^[update], about 40% of Singapore's residents were foreigners, one of the highest percentage in the world.^[145] The government is considering capping these workers, although it is recognised that they are crucial to the country's economy,^[146] as foreign workers make up 80% of the construction industry and up to 50% in the service industry.^[147][148]

In 2009, the government census reports that 74.2% of residents were of Chinese, 13.4% of Malay, and 9.2% of Indian descent,^[149] while Eurasians and other groups form 3.2%. Prior to 2010, each person could register as a member of only one race, by default that of his or her father, therefore, mixed-race persons were solely grouped under their father's race in government censuses. From 2010 onward, people may register using a "double-barrelled" classification, in which they may choose one primary race and one secondary race, but no more than two.^[150]

Religion[link]

Buddhism is the most widely practised religion in Singapore, with 33% of the resident population declaring themselves adherents at the most recent census. The next largest religious demographics, in order of size, are Christianity, non-religious, Islam, Taoism and Hinduism. The proportion of Christians, Taoists and non-religious people increased between 2000 and 2010 by about 3% each, while the proportion of Buddhists decreased. Other faiths remained largely stable in their share of the population.^[151]

There are monasteries and Dharma centres from all three major traditions of Buddhism in Singapore: Theravada, Mahayana, and Vajrayana. Most Buddhists in Singapore are Chinese and are of the Mahayana tradition.^[152] Chinese Mahayana is the most predominant form of Buddhism in Singapore, with missionaries from Taiwan and China for several decades. However, Thailand's Theravada Buddhism has seen growing popularity among the people (not only the Chinese) in the past decade. Soka Gakkai International, a Japanese Buddhist organisation, is practised by many people in Singapore, but by mostly those of Chinese descent. Tibetan Buddhism has also made slow inroads into the country in recent years.^[153]

Languages[link]