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Georgia’s Economic Minister Got Familiar with the Economic Reforms in Singapore

Published: February 28, 2011 | 8:23 pm
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The COMMERCIAL TIMES

Singapore is traditionally among the top 3 according to all economic ratings – doing business is most easy here, the taxes are one of the lowest and there is a favorable investment climate. The Asian “Tiger” has one of the biggest GDP per capita in the whole world; it is a country where more than 5 million people live on 707 square kilometers; Singapore is one of the most developed countries in the world and most important, its economy expended during the last decade. In the 60’s, when Singapore chose a liberal path for the development of its economy, GDP per capita was 500 USD, almost 5 times less than in Georgia today. Today Singapore’s GDP per capita is 50 000 USD per capita and this island is one of the leaders in this respect.

Studying the economic reforms of Singapore was the main aim of Georgian delegation which arrived in Singapore recently. “During our visit we found out that representatives from both developed and under developed countries were visiting Singapore in order to study the county’s economic reforms eg. Minister of Finance of France and officials from different Latin American countries. Everyone wonders, how Singapore managed to satisfy all of its 5 million inhabitants and increase its economy annually,” – the Minister of Economy and Sustainable Development of Georgia and head of Georgian delegation, Vera Kobalia noted. Representatives of the parliament and government structures were part of the delegation. According to the Minister, Georgia and Singapore have a lot in common and that is why the government speaks about “Singaporization.”

Singapore is famous for its production of electronic devices and it is one of the World’s financial centers, representatives of all large financial institutions operate in the city. Tourism is also one of the important components of the country’s economy. The country which has a population of 5 million people was visited by 12 million tourists in 2010. The country is also successful in developing biotechnologies. The port, which is among the 4 biggest ports in the world and is the busiest of them all, also brings great income to the country. Nevertheless the main riches of the country are Singaporeans, who are highly qualified workers and have the ability to adapt to any novelty. The finances that are invested in education by the government yield maximum result.

The country was in a hard economic situation after WWII. During the 60’s, when the country was in a desperate need of investments, the government formed an institute of financial development – Development Bank of Singapore “DBS.” Today the bank is a large investment corporation which operates around the world.

Singaporean economics experiences transformations even nowadays. New directions of economics are being developed, which must preserve country and citizens’ wellbeing for the future. “Jurong International” is the synonym for Singaporean industrialization. “Singapore Airlines”, Singapore Fouer”, – this is the short list of companies which are shared by “Temasek Holding”, commercial Institution controlling Singaporean national assets in different companies. Since 1974, “Temasek Holding” ensures the development of share value of indicated companies. “Temasek Holding” does its business independently from the government and the president, but because of controlling Singaporean state property, the company has to present the official bill to the state agencies that shows efficiency of investment opportunities including opportunities outside Singaporean borders.

Chairman of parliament legal committee Pavle Kublashvili announced that, Singaporean economic success is the right national political result that is oriented on the employment and attraction of the investment. He says: “This is the example of how right use of national resources, the venture management of financial flows can always allow one to attend events, to develop technologies, and to take care of qualification and education of one’s population. “Singaporean economics is the good example of the education based economics system”, – said Pavle Kublashvili

“Temasek Holding” and other companies’ interests mostly include South East Asia, United States and European Union, but new strategies of “Temasek Holding” that is calculated on the next decade, shows interest towards the republics of former Soviet Union. All meetings in Singapore held by Georgian delegation, showed big interest in Georgian current reforms and in separate economical sectors. One of the companies carrying big interest is “Georgian Railroads”, whose headmaster is Irakli Ezugbaia. Irakli acquainted Singaporean investors to Georgian company investment projects. He also announced that important interest was caused on Singaporean bourse by the perspective of Georgian securities to be sold. Irakli also announced that businesslike meetings in Singapore will in the near future result by the visit of Singaporean potential investors in Georgia

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