Economic Analysis - Efforts To Boost International Connectivity To Ensure LT Growth - APR 2018

BMI View: We expect the Singapore government to be more successful in its efforts to improve connectivity as compared with developing a vibrant city. We highlight that the country's small size makes it well-placed to experiment with urban solutions and believe that ongoing plans to strengthen international connectivity will help Singapore maintain competitiveness, informing our forecast for long-term growth to average 3.0% over the next decade.

In its report, the Committee on the Future Economy (CFE) recommended that the Singapore government develop and build a vibrant and connected city of opportunity, noting that 'Singapore's capacity to flourish in today's highly connected world is tied to our ability to attract and create opportunities'. We believe that the government will likely have more success with plans to strengthen Singapore's external connectivity, with the city-state's economic growth being dependent on its air and sea routes. This will help Singapore maintain its international competitiveness, informing our forecast for growth to average annually 3.0% over the next decade. The country will also benefit ongoing efforts to experiment with urban solutions. However, efforts to create a vibrant city are likely to take considerably longer as Singapore faces difficulties in shedding its reputation as a 'fine' city.

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