x Abu Dhabi, UAESunday 23 July 2017

Singapore's vibrant economy a useful model for Abu Dhabi

Abu Dhabi Model Economies: Abu Dhabi looks to the Asian powerhouse Singapore as part of its 2030 strategy.

bu Dhabi looks to the Asian powerhouse Singapore as part of its 2030 strategy. Munshi Ahmed/Bloomberg
bu Dhabi looks to the Asian powerhouse Singapore as part of its 2030 strategy. Munshi Ahmed/Bloomberg

Singapore made the fastest recovery from the 2009 recession of any country in Asia, according to new research.

The South East Asian trading and financial centre, which is one of the models for Abu Dhabi's Economic Vision 2030, posted 14.5 growth in GDP last year. This is higher than China or Taiwan, both at just over 10 per cent, or India, at 8.5 per cent, according to data by HSBC.

Leif Eskesen, the HSBC chief economist based in Singapore, said growth was again strong in the first quarter of this year, "but is expected to ease in coming quarters".

Writing before any economic effects of the current world financial turmoil were apparent, he expected 6.2 per cent growth overall this year, still among the highest in the Asia region.

"No country in the world has developed as rapidly or efficiently as Singapore … If you want to prevent political problems, have rapid economic development," said Professor Kishore Mahbubani, the dean of the Lee Kuan Yew School of Public Policy at the National University of Singapore, and one of the region's leading intellectuals.

In financial services, Singapore has also made big advances, rivalling Hong Kong as the main financial hub in east Asia.

The monetary authority of Singapore has a unified central role as central bank, market regulator and financial strategist.

The Singapore Exchange, the main equities and derivatives market, is being talked about as a possible bidder for the London Stock Exchange.

Temasek Holdings, a government-owned investment institution, recently announced it had doubled the value of its investment portfolio in seven years, to S$193 billion (Dh582.6bn).

 

fkane@thenational.ae

Abu Dhabi model, b6-b7