To
what extent should Singapore government promote locally produced goods?
a.
Description of a situation
- According to Singstat, Singapore’s total trade amounted to 87.2 per cent of Gross Domestic Product in 2001. Total exports grew by 4.2 per cent in January 2014. Singapore has signed Free Trade Agreements (FTAs) with many countries such as Taiwan, New Zealand to facilitate trading of goods and services. Although Singapore’s economy is open, we are gradually moving to be more independent from trades.
b.
Identification of a problem
- Singapore is a country that lacks natural resources and we depend very much on exports and investments. It relies mainly on its trade-oriented market economy.
- ‘Global Village’, as the world has become increasingly integrated and connected, what affects one country will affect others as well.
- The recent economic crisis that has hit hard on America and Europe countries, indirectly affected Singapore economy as well
- Singapore's exports in June extended the longest run of declines since the global financial crisis
- Agriculture products
- The government should promote locally grown goods to boost local consumption and reduce imports from other countries.
- Melcom Group of Companies has embarked on an initiative to build consumer confidence in local products by promoting Made-in Ghana goods
- 'Made-in-Ghana Festival' has amongst other things the objectives to demonstrate confidence in Ghana’s manufacturing industry, showcase achievement in local production and give the shopper a local alternative in quality and value.
- Singapore can adopt this solution (e.g 'Made-in-Singapore' Festival)
- Raise awareness that certain food and products are also produced by Singapore
- According to Agri-Food and Veterinary Authority (AVA), increase locally produced farm products such as vegetables, fishes and eggs.
- Sales of local produce - mostly vegetables, eggs and fish - have gone up by as much as 40 per cent over the past three years
d.
Evaluation of the solution #1
- This is a long term solution as it involves changing consumers’ taste and preferences
- Changing people's habits
- Singapore is is not possible to be totally self-reliant as certain goods are unable to be produced in Singapore due to
- lack of land space and natural resources
e. Description of solution #2
- Promote local products by adopting differential mark- ups for local products, for instance where they were applying a uniform mark-up of say 15%, they could lower the mark-up on local products to 10% and increase the mark -up on imported goods to 20%.
- Similar goods with a lower price would be encouraged people to buy it.
f. Evaluation of the solution #2
- The general notion among some Ghanaians have been that locally manufactured goods are inferior to imported and foreign manufactured goods in terms of performance and quality
- Some people are still willing to buy goods that are more expensive when they perceive it to be of better quality.
g. Thesis Statement/Introduction
- Singapore is one of the nations in the Four Asian Tigers
- Four Asian Tigers : highly free and developed nations. These nations were notable for maintaining exceptionally high growth rates and rapid industrialisation
- Critics argued that Singapore's economic prosperity is mainly due to its heavy dependence on trading. Personally, i feel that there are several other equally important factors that contributes to Singapore's growing economy.
