Singapore's Recent Economic HistorySingapore is well positioned for international industry and trade. The development of Singapore's economy is highly dependent on foreign capital, foreign technology and foreign workers. Foreign companies are attracted by an attractive tax system. Foreign investors profit from the fact that they pay lower tax rates than local residents. The Singapore government has a great influence on social and economic development. The authorities have organized, for example, training courses for Singaporean workers in order to obtain trained and highly motivated residents. This resulted in an increase in nominal wages and a decrease in unemployment. The Singapore government has always supported the free enterprise system to achieve industrial stability. The combination of supporting Singaporeans, inviting multinationals and adopting the free enterprise system has meant that Singapore is now one of the most important financial countries in Southeast Asia source: Yearbook of Statistics Singapore, 2007, page 74) Annual GDP growth in %2002 3.0 %2003 2.0 %2004 12.8 %2005 7.0 %2006 8.1 %(Source: Yearbook of Statistics Singapore, 2007, page 74)The last five GDP has been increasing for years. From about $158 billion in 2002 to nearly $210 billion in 2006. The $52 billion increase is partly due to the Singapore government cutting corporate taxes to raise...... half of paper ......11/2003373703Singapore's GDP contracts 4.8%, cuts 2008 growth outlook (2008) Retrieved March 16, 2008, from http://www.marketwatch.com/news/ story/singapore-gdp-shrinks-48-cuts/ story.aspx?guid=%7BE38E6C09-CD39-4A4D-9536-703DCCD48875%7DEEconomic History of Singapore (year unknown) Retrieved March 16, 2008, from http://www.sjsu .edu/faculty/watkins/singapore.htmBrief History of Singapore (1994) Retrieved March 16, 2008, from http://www.singaporeexpats.com/about-singapore/brief-history.htmStatistics Singapore (2008), Retrieved March 16 2008 from http://www.singstat.gov.sg/ Photo cover page (2008) Retrieved March 29, 2008 from http://www.flickr.com/