Analysis of Innovation-Driven Economy in Singapore's Economic Transformation

Abstract

Singapore has achieved great success in economic transformation and industrial upgrading. The four reforms after Lee Kuan Yew took office changed the economic situation of Singapore, which included the development of import-oriented economy, labor-intensive industries, capital-intensive industries, and knowledge-based industries. Finally following the Industry 4.0 era began the development of artificial intelligence technology and innovation reforms. However, Singapore's industrial transformation was still problematic, and over-reliance on international trade caused Singapore's economy to take a hit during COVID19. In addition, Singapore is facing human resource problems, including a growing aging and unemployed population. This paper will analyze the implementation methods and effectiveness of Singapore's economic reforms through the process of economic transformation and review the reasons for Singapore's rapid economic development. Based on the transformation of Singapore's economy, it will also examine the aging population and the impact of COVID-19. Ultimately, we may provide some useful thoughts and lessons for the development of developing countries by analyzing Singapore's successful experience as well as the dynamics and reasons behind it.