Competition from China is a threat to Singapore

Increased competition from China is a concern for Singapore in the future, despite its outperformanc...

Increased competition from China is a concern for Singapore in the future, despite its outperformance through 2002. Over the past year, the China Shanghai A index fell 21.53% in sterling terms while the Singapore STI market dropped 20.65% on the same basis. The region is suffering a deflationary effect as jobs are moved to China, taking industries with them, according to Garry Mackenzie, director of Asian equities at Insight Investment. Unemployment in Singapore has been on the rise and export growth almost absent, he notes. Sluggish GDP growth of less than 4% annualised versus conse...