Singapore’s economy, one of the most advanced in Southeast Asia, has undergone remarkable economic growth and diversification since 1960. Unlike other Southeast Asian countries, Singapore has never been primarily dependent on the production and export of commodities. Economic development has been closely supervised by the government and has been highly dependent on investment capital from foreign multinational corporations. Labour shortages and rising wages have further encouraged the restructuring of the economy towards higher value-added production. 

In recent years, Singapore has shifted its official policy to rely more on market forces, privatization of government enterprises, and support for domestic private businesses. The manufacturing sector has seen diversification from labour-intensive industries to high-technology activities like the manufacture of electronics and precision equipment. This diversification, accompanied by the establishment of free trade zones and incentives for multinational corporations, has played a pivotal role in Singapore’s economic success.