THE TRANSPORTATION AND RELATED INDUSTRIES IN SINGAPORE : ITS CONTRIBUTIONS AND PROSPECTS

Abstract

The basis for the indispensable role of transportation in an economy lies not only in the fact that it creates the value and usefulness of goods and services through conveying them from one place to another, it also allows for specialisation, facilitates trade and hence increases the standard of living. This study attempts to examine the role of transportation in the Singapore economy. The sector in Singapore encompasses the air, water and land transportation, and telecommunications. Due to our strategic location, transportation is vital in providing the impetus to the growth of our economy. Chapter One highlights the importance of the transportation and communications sector to Singapore by looking at statistics across time and comparative data of selected countries. Chapter Two establishes a theoretical framework of transportation in the economic development of a country by examining a study by Wilfred Owen and the Taaffe-Morrill--Gould model. These are then applied to the Singapore context. Chapter Three views from a historical perspective the contributing role of transportation to Singapore's economic growth. The evolution and development of the various form of transportation are traced and examine in relation to changes in the economy through the period of 1819-1989. Through the input-output analysis, Chapter Four highlights the fact that transportation is a derived demand in that it is a catalyst to achieving economic or social objectives. The analysis covers the output, income, import and employment multipliers, forward and backward linkages and the net foreign exchange earnings of the sector. A summary of the findings is then used to assess the economic implications for Singapore. The final chapter discusses the future trends and challenges facing the transportation sector. The chapter concludes by making some recommendations to enhance the future role of transportation in the Singapore economy.