A STUDY ON THE FINANCIAL SECTOR'S CONTRIBUTION TO THE SINGAPORE ECONOMY : IT'S IMPORTANCE IN THE PAST AND IT'S FUTURE SIGNIFICANCE

Abstract

The recent currency crisis highlighted the importance of the financial sector. To put it bluntly, the sector could make or break the economy. It would be worthwhile to ascertain the sector's contribution in the past. Had it played a significant role in the growth of the economy? How does it help propel the growth of the economy? Through the answers to these questions, we can then judge if the financial sector had been significant in the past. The second part of this study aims to ascertain the sector's importance in the future. Will it remain significant? More importantly, what are the factors that will cause the financial sector to remain significant? Factors under consideration, would be the role of MAS, financial liberalization, bank management etc.

The above are the issues that this study aims to investigate. The recent currency crisis is a good example of why issues as such need to be discussed in greater details. An inefficient financial sector can lead to a meltdown of the economy. On the other hand, for a small economy like Singapore, an efficient financial sector could bring it to new heights of economic growth.