Singapore's Approach to Managing Economic Crises

Abstract

Known to be highly open and dynamic, Singapore’s economy is driven by a state-centric approach to economic governance that emphasises regulatory transparency, effective and timely policy interventions, and a robust economic infrastructure. However, despite sound macroeconomic foundations, Singapore’s openness and complexity also makes it highly vulnerable to the ‘contagion’ effects of global and regional economic crises. This case study provides a brief overview of Singapore’s general approach to economic governance, and discusses the government’s response to three key economic crises—the 1985 Economic Crisis, the 1997 Asian Financial Crisis, and the 2008 Global Financial Crisis.