In such economically tumultuous times, high end exports seem to be the safest business option in Singapore. The country’s think tank seems to have found a solution to fight this slowdown by continuing to produce high end products that seem to cost less because of cheap labor and developed infrastructure. With international facilities of exporting the products from this easy and natural sea port, sticking to exports and continuing with the current short term policy of layoffs seems to be the answer to fight inflation and downturn of economy. The banks have also raised interest rates in a bid to ease pressure on the economy.
While it may benefit some, laying off foreign workers is only a short term solution. Another of powerful ideas to bring back on track the economy of this giant financial center of the world is to limit the number of foreign workers and also to lay off foreign workers. However, Singapore government realizes the importance of foreign workers in the growth of the country’s economy, especially those who are professionals as the country does not seem to have an overabundance of highly skilled labor at present.