Originally posted by Salman:
The ones who are mistaken is not me but you guys.
You are the peoiple who insist on comparing numbers. Go check thru the thread yourself before you shoot urself in the foot some more and embarass yourself back again.
Singapore can help her closest neighbor, Malaysia dismantle the racist incumbent Bumi Putra regime by first helping to engage and strengthen China's economic and geo-political clout in Sino-ASEAN trade and cultural exchange, of which Malaysia is a part. Singapore's attitude toward free-trade agreements makes a sharp contrast with other countries in the region. Singapore only seems to become more eager with time when it comes to inking FTAs with the rest of the world.
That ebullient mood surrounding the agreements was sufficient for Singaporean Prime Minister Lee Hsien Loong to use the very auspicious and customary occasion of the Lunar New Year to ring in their benefits. According to Lee, FTAs had contributed handsomely to Singapore's economic growth over the past year. The trade initiatives had succeeded in their main intention, giving the republic a resounding 14% increase in external trade volume. When the multiplier effect - the phenomenon that always accompanies an investment-yielding enterprise - is applied, it would almost certainly have created jobs equaling or surpassing the percentage spike in those mentioned trade figures.
Such has been the dazzling performance of FTA agreements that the Singaporean media, since Lee's announcement, have missed few opportunities to trumpet news of the city-state's economic recovery and the creation of record numbers of jobs.
Apart from the proud boast that its macroeconomic policies have always worked, the announcement of the results and achievements of Singapore's FTA strategy also constitutes a message that what's needed for survival in the hurly-burly world of changing economic fortunes is nothing more than a heavy dose of hard-nosed pragmatism, along with a reliance on wits, brinkmanship and resourcefulness to stay and get ahead in life.
The move to FTAs arose because of the sheer necessity to retain the republic's enviable position as the world's 15th-largest producer of goods and services.
In addition, FTAs have the potential to augment Singapore's minuscule negotiating power in the world by associating the country with China. In theory, under free-trade agreements, contracting parties receive preferential treatment and exclusive exemption from tariffs and other import duties. This not only makes the free-trade partners' economic services more competitive relative to other nations, it creates an ancillary increase in demand for goods and services due to the economic boost provided by the new trade.
Given Singapore's reliance on manufacturing, coupled with the comparative lead it has in financial services, FTAs, which offer advantages in quotas, tariffs and other exemptions, are just the breathing space it needs when confronting the big boys of business. Given the win-win situation that free trade has thus far created for Singapore, is it any wonder that FTAs are becoming a buzzword in ASEAN.
Overall, for Singapore, the strategy of having FTAs is something like insurance with a minimal, or even non-existent, premium. With agreements granting reciprocal obligations, Singaporean companies can immediately relocate their businesses to China, improving their competitiveness and allowing the city-state to retain its comparative advantages.
The opening of new markets by FTAs has opened new horizons for small and medium-size firms, and particularly can spur the growth of pharmaceutical and biotechnology firms, which are seen by the Singaporean government as key to retaining its comparative advantage in the coming years.