Hong Kong must accept status as SAR for 'one country, two systems' to work: Lee Hsien Loong
Why is Singapore concern about the unrest in HK and is watching its development closely?
(1) HK is Singapore 2nd largest trading partner after China.
1. China: US$54 billion (14.5% of total Singaporean exports)
2. Hong Kong: $46 billion (12.3%)
3. Malaysia: $39.6 billion (10.6%)
4. Indonesia: $28 billion (7.5%)
United States: $24.2 billion (6.5%)
(2) Singapore trade is 3 times the size of our GDP - $1.1 trillion.
(3) US-China trade war - has cause Singapore GDP to plummet from 3.2% to 0.1% (this quarter).
(4) China is our largest trading partner and Singapore is the largest investor in China. We also have sizeable investment in HK.
(5) Our margin of error (buffer) is gone at 0.1% growth this quarter- and any slight further 冬瓜豆腐 - will means we will go into 0 growth or negative growth - essentially entering into technical recession.
China and HK play a sizeable part of our trade - which contribute to a sizable part of our GDP (in a Circular Flow of Income (GDP) - trade, domestic consumpution, govt spending - where trade make up 3 times the size of our GDP).
Anything happen to China or HK - will directly impact our GDP figures.
(6)When recesion sets in (negative growth), our business will experience contraction - and will translate to job loss in Singapore.
(7) Thus ensuring :-
- US-China trade deal is secured
- HK unrest return to peace ---- is vital to Singapore's Economy and jobs.
now
(1) Singapore has a very small domestic economy - about 5.8 million people.
(2) Government spending in 2019 is $74.9 billion.
(3) Domestic consumption is about $44.33 billion.
(4) Trade is the largest component = $1.1 trillion.
(5) Circular Flow of Income (Economic activities or Business activities) - are based on trade, govt spending and domestic consumption ---- fuel business and create jobs.
(6) If our trade ($1.1 trillion) falter ---- with our small domestic economy of consumer spendings ($44.33 billion ) + respectable govt spending ($74.9 billion) ---- there is no way we can prop up our growth --- just by relying on domestic consumption and govt spending ---- unlike Big Economy with big domestic market -- like US, China, India, Indonesia.
(6) Having say so even US, China, India, Indonesia depend on trade to have good Economic Growth ---- cannot just rely on domestic consumption for growth.
(7) Thus the well being of overseas market --- is translated to the well being of Singapore Economy.
(8) Anything bad happen to overseas Countries (especially our trading partners) ---- will be bad for Singapore.
(9) Singapore is not immune to what happen overseas - as the well-being of Foreign Countries will impact our well-being - with increasingly closely-knitted and integrated World Economy.
(2) Government spending in 2019 is $74.9 billion.
(3) Domestic consumption is about $44.33 billion.
(4) Trade is the largest component = $1.1 trillion.
(5) Circular Flow of Income (Economic activities or Business activities) - are based on trade, govt spending and domestic consumption ---- fuel business and create jobs.
(6) If our trade ($1.1 trillion) falter ---- with our small domestic economy of consumer spendings ($44.33 billion ) + respectable govt spending ($74.9 billion) ---- there is no way we can prop up our growth --- just by relying on domestic consumption and govt spending ---- unlike Big Economy with big domestic market -- like US, China, India, Indonesia.
(6) Having say so even US, China, India, Indonesia depend on trade to have good Economic Growth ---- cannot just rely on domestic consumption for growth.
(7) Thus the well being of overseas market --- is translated to the well being of Singapore Economy.
(8) Anything bad happen to overseas Countries (especially our trading partners) ---- will be bad for Singapore.
(9) Singapore is not immune to what happen overseas - as the well-being of Foreign Countries will impact our well-being - with increasingly closely-knitted and integrated World Economy.
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