In addition, throughout its history, Singapore has benefited from the large inward flows of FDI from global investors, financial institutions and multinational corporations (MNCs) due to its highly attractive investment climate along with a stable and conducive political environment throughout its modern years.

[33] Singapore is also a regional, continental and global hub for the management and operations of various MNCs, because of its strategic location in close proximity with other Asia-Pacific markets, along with its advanced connectivity and infrastructure (airline hub and maritime port with a diverse array of destinations, Gigabit fiber-optic communications, efficient road transport and public transport) and its immigration policies in welcoming global talent.

[34] One of the key factors contributing to Singapore's economic miracle was its strategic location, which made it an ideal hub for international trade and commerce.

To preserve its international standing and to further its economic prosperity in the 21st century, Singapore has taken measures to promote innovation, to encourage entrepreneurship and to retrain its workforce.

[53] Raffles found Singapore to be a perfect location, sitting just of the edge of the Straits of Malacca, nowadays one of the most important shipping lanes in the world.

At the time accompanied by William Farquhar, Raffles met with Temenggong (essentially, Chief of Security, for the settlement) Abdul Rahman to negotiate the right to establish a trading post on the island, under the British Empire.

The island was ruled nominally from Johar on the peninsula by Tengku (essentially, Prince) Rahman, Sultan of Johor, who was heavily influenced by the Dutch and the Bugis.

Recognizing this, Lee identified that the key advantage that Singapore held was its human capital, and its ability to provide highly educated citizens capable of competing in global industry and trade.

Meanwhile, Singapore's savings and investment rates rose among the highest levels in the world, while household consumption and wage shares of GDP fell among the lowest.

[67] Living standards steadily rose, with more families moving from a lower-income status to middle-income security with increased household incomes.

[71] The economy picked up in 1999 under Goh Chok Tong, the Prime Minister of Singapore, after the regional financial crisis, with a growth rate of 5.4%, followed by 9.9% for 2000.

[73] Singapore is expected to experience an economic slowdown in 2019, with GDP growth slowing to 1.9% from 3.1% in 2018, due to tariff hikes from the United States and China.

[79] It was estimated by the economist Chua Hak Bin, the Singapore circuit breaker measures in response to the pandemic, beginning on 7 April could impact the economy to the tune of S$10 billion.

[81] Senior Minister of State for Trade and Industry Chee Hong Tat announced that some 3,800 companies had closed in April 2020, only slightly higher than the 3,700 reported on average for the same month in the past 5 years.

[83] Initially the state's role was oriented more toward managing industries for economic development, but in recent decades the objectives of Singapore's sovereign wealth funds have shifted to a commercial basis.

State ownership is prominent in strategic sectors of the economy, including telecommunications, media, public transportation, defence, port, airport operations as well as banking, shipping, airline, infrastructure and real estate.

To maintain its competitive position despite rising wages, the government seeks to promote higher value-added activities in the manufacturing and services sectors.

Hundred of millions of dollars were invested into the sector to build up infrastructure, fund research and development and to recruit top international scientists to Singapore.

[99] As a financial hub, Singapore can play an important role in attracting investment in renewable energy in the entire ASEAN region.

[101] In July 2022, a report by Savills revealed that Singapore tied with New York City in recording the highest rental growth rate for luxury homes globally.

According to Healy Consultants, Singapore has free trade access to the entirety of the ASEAN network, with import duty reduced when dealing with Indonesia, Malaysia, the Philippines, Thailand, Brunei, Burma, Cambodia, Laos and Vietnam.

The Singapore Economic Development Board (EDB) continues to attract investment funds on a large-scale for the country despite the city's relatively high-cost operating environment.

Singapore's largely corruption-free government, skilled workforce, and advanced and efficient infrastructure have attracted investments from more than 3,000 multinational corporations (MNCs) from the United States, Japan, and Europe.

MNCs account for more than two-thirds of manufacturing output and direct export sales, although certain services sectors remain dominated by government-linked corporations.

[citation needed] The country has the largest proficiency of English language speakers in Asia, making it an attractive place for multinational corporations.

[121] The Singapore Government and the NTUC have tried a range of programs to increase lagging productivity and boost the labour force participation rates of women and older workers.

Singapore Parliament accepted the recommendations by its Economic Strategies Committee (ESC) for the optimal ratio of the level of immigration and foreign manpower for both high and low skilled workers.

Both operate as commercial investment holding companies independently of the Singapore government, but Prime Minister Lee Hsien Loong and his wife Ho Ching serve as chairman and CEO of these corporations respectively.

[160] In May 2022, six major banks agreed to pay $64.5 million to resolve antitrust allegations that they worked together to rig benchmark Singapore interest rates.

and JPMorgan Chase & Co.[161] To dampen property speculation, the government imposed Additional Buyer's Stamp Duty (ABSD) starting in December 2011.