Why is Singapore So Rich?

Added: 2026-05-27

[00:00:00]Why is Singapore so rich? Singapore is known as one of the richest countries based on GDP per capita, ranking sixth in the world above even the US and the Netherlands. It's also a global banking, trade, and tech [music] powerhouse. How can we understand this rapid economic growth despite Singapore's small size, >> [music] >> lack of natural resources, and history of poverty? In 1965, Singapore looked like this. It had just split from Malaysia after over [music] a century of British colonial rule. It was one of the poorest countries in Asia, had a high unemployment rate, and was suffering from political instability. However, [music] Singapore's strategic location on global shipping routes in the Strait of Malacca makes its port one of the busiest in the world, giving the city a strong base to develop on. Prime Minister Lee Kuan Yew led the People's Action Party for over 30 years after independence. His policy transformed the nation into an economic powerhouse. A stable government, low corporate taxes, [music] and prime location created an attractive environment for corporate investment in Singapore. Singapore also transformed its tax [music] code to appeal to finance and banking firms, along with creating state-linked financial firms like Temasek to manage national assets. Additionally, Singapore invested heavily in its public housing, healthcare, education, and transportation [music] to ensure citizens felt the benefits from its economic prosperity. This government investment helped to make Singapore's labor force highly educated, professional, and one of the most productive in the world. Despite its natural barriers to success, Singapore was able to leverage its advantageous location, visionary government, and robust labor force >> [music] >> to become the blueprint for any country trying to grow its economy.