A comparative analysis of Singapore and

Philippine economics during 1995.

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Ray Jason Bornasal

Paolo Herrera

BSE 31

Review of the Related Literature

Brief Description of the Country and its National/State Government Structure

DemographyThe Philippines is an archipelago country of 7,100 islands

with a land area of 30 million hectares. Its population is 70 million with an annual growth rate of 2.5 per cent. Most of the population is concentrated in the twenty largest islands with about 54 per cent of the country's total population living on the island Luzon, 32 per cent in the central part of the country (Visayas), while the island Mindanao in Southern Philippines accommodates some 14 per cent. 55 per cent of the population is estimated to live in urban areas while 45 per cent lives rural areas. Continuous migration to highly urbanized centres has increased the number of urban dwellers who flocked to cities looking for employment opportunities in the industry, commercial and service sectors.

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National governmental and political structure

The Philippines is a republic with a presidential system. The national government has three branches: the executive branch headed by the President, the legislative branch and the judicial branch. The executive branch consists of 26 cabinet secretaries and equivalent ranks in specialized agencies, the national bureaucracy and the military, of which the President is Commander in Chief. The legislative branch or Congress is a two-chamber legislature. There are 24 senators in the Philippines Senate, while there are 220 Congressmen or House Representatives. The judicial branch consists of the Supreme Court, the Court of Appeals, Regional Trial Courts and other special courts (i.e. juvenile, family or sharing courts). Each branch of the national government is coequal to each other.

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The Philippines has a multi party democracy. The Constitution provides for the same term limits for elected public officials. The people elect the President, Vice President, all members of the national legislature, Provincial Governors, City and Municipal Mayors, members of the local councils and the Barangay officials. Political parties at the local level are generally extensions of political parties engaged in national politics. For the purpose of administration and development planning, the Philippines is divided into 15 administrative regions. In each regional capital, the 26 departments of the national government have their regional offices.

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Overview of the Philippine Economy

Macroeconomic Indicators – Economic Performance – Economic Structure – Gross Domestic Product by Industrial Origin at

Current Prices – Agriculture, Forestry and Fishery – Manufacturing

and Mining – Oil and Energy – Construction

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Macroeconomic Indicators

GDP at current market prices P1,458.9 billion

Real GNP growth 1.4 percent

Consumer price inflation 7.5 percent

Exports fob US$11.1 billion

Imports fob US$17.1 billion

Current account -US$1.85 billion

Gross international reserves US$4.9 billion

Total external debt US$35.1 billion -rj07-

Singapore Economy 1995

Overview: Singapore has an open entrepreneurial economy

with strong service and manufacturing sectors and excellent international trading links derived from its entrepot history. The economy registered nearly 10% growth in 1993 while stemming inflation. The construction and financial services industries and manufacturers of computer-related components have led economic growth. Rising labor costs continue to be a threat to Singapore's competitiveness, but there are indications that productivity is keeping up. In applied technology, per capita output, investment, and labor discipline, Singapore has key attributes of a developed country. -rj07-

• National product: GDP - purchasing power equivalent - $42.4 billion (1993)

• National product real growth rate: 9.9% (1993) • National product per capita: $15,000 (1993 est.) • Inflation rate (consumer prices): 2.4% (1993) • Unemployment rate: 2.7% (1993)

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• Budget: revenues: $11.9 billion expenditures: $10.5 billion, including capital expenditures of $3.9 billion (1994 est.)

• Exports: $61.5 billion (f.o.b., 1992) commodities: computer equipment, rubber and rubber products, petroleum products, telecommunications equipment partners: US 21%, Malaysia 12%, Hong Kong 8%, Japan 8%, Thailand 6% (1992)

• Imports: $66.4 billion (f.o.b., 1992) commodities: aircraft, petroleum, chemicals, foodstuffs partners: Japan 21%, US 16%, Malaysia 15%, Saudi Arabia 5%, Taiwan 4% -rj07-

• External debt: $0; Singapore is a net creditor • Industrial production: growth rate 2.3% (1992); accounts

for 28% of GDP • Electricity:

capacity: 4,860,000 kW production: 18 billion kWh consumption per capita: 6,420 kWh (1992)

• Industries: petroleum refining, electronics, oil drilling equipment, rubber processing and rubber products, processed food and beverages, ship repair, entrepot trade, financial services, biotechnology

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• Agriculture: occupies a position of minor importance in the economy; self-sufficient in poultry and eggs; must import much of other food; major crops - rubber, copra, fruit, vegetables

• Illicit drugs: transit point for Golden Triangle heroin going to the US, Western Europe, and the Third World; also a major money-laundering center

• Economic aid: recipient: US commitments, including Ex-Im (FY70-83), $590 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-89), $1 billion

• Currency: 1 Singapore dollar (S$) = 100 cents Exchange rates: Singapore dollars (S$) per US$1 - 1.6032 (January 1994), 1.6158 (1993), 1.6290 (1992), 1.7276 (1991), 1.8125 (1990), 1.9503 (1989)

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Conceptual framework

Phil Sing

Economy Economy

GNP

GDP

Im and EXIm and Ex

GDP

GNP

Politics:Structure,

Economic policiesEtc…

Analysis Analysis

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Statement of the Problem

The study aimed to compare the economics of Singapore and the Philippines, particularly, the economic systems and policies.

The study specifically sought to answer the following:

1. who were the elected head of the state on the year 1995?

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2. What were the economic systems that were being followed by the 2 countries?

3. What were the economic policies imposed by their leaders?

4.What was the difference between the economics of the 2 countries?

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