ECO203: Discuss and Analyse How Singapore, Now as Essentially a High Technology Economy: International Economics Assignment, SUSS, Singapore

Question

Discuss and analyse how Singapore, now as essentially a high technology economy in producing goods and services, is reflected in its healthy balance of payments (BoP) as surplus from both its Current Account (exports/imports of goods and services) and Capital and Financial Account (foreign investment as direct, portfolio, official and others) (see singstat.gov.sg/).

What would you suggest as the best utilisation of its healthy build-up of BoP surplus, accumulated as Reserve Assets/Official Reserves?

In Study Unit 4 Chapter 8, we discuss the definition of balance of payments, how to record the balance of payments, and its interpretations.

In this presentation, we will first introduce the balance of payments. Next, we discuss the debit entry and credit entry in the balance of payments. Then we analyse the various accounts in the balance of payments, such as the current account, the financial account, and the official reserve account. Finally, we analyse the balance of payment position of an economy based on the information on the various accounts in the balance of payments.