Economic stability is a necessity in any country considering the benefits associated with it. In this case study, there have been several factors pointed as the core courses of the economic instability in Singapore. Thus, there is a need for recommendation strategies that can be applied to contain these causes of economic fallout specifically, which should be a responsibility of the Singapore government.
Firstly, the government should support the economic growth via encouraging productive capacity. In this sense, the Singapore’ quality and productivity level of the current labor force, especially in the manufacturing sector, will guarantee boost of the economic and social infrastructure platforms. As a result, the global competitiveness of Singapore is warranted.
Also, although there are reported cases of inflation, the government should consider targeting the whole economy and not dealing with inflation as a single factor. In this sense, the policies that the Singapore government will put in place should be the ones that aim at increasing domestic product before inflation. Hence, this would result in nominal GDP targeting, and subsequently, the economy will be a safe path. Such incentive will cause an expectation to the investors and also consumers of high inflation rates, which they will be likely prepared and consequently forming an encouragement to invest today rather than a future date.
Other recommendations that I think are at the disposal of the Singapore government include; implementing fiscal policies that are workable enough to improve the economic state of the country, increase the labor skills of the workers in the various sectors via the use of government subsidies and creation of wage credit scheme and PIC schemes. If all the above recommendations are appropriately implemented, I believe that these economic challenges facing Singapore will be mitigated.