Using Pest Analysis In Singapore To Look At How The Political, Economics, Social And Technology Changes Are Impact The Needs Of Information Technology.This essay Using Pest Analysis In Singapore To Look At How The Political, Economics, Social And Technology Changes Are Impact The Needs Of Information Technology. is available for you on Essays24.com! Search Term Papers, College Essay Examples and Free Essays on Essays24.com - full papers database.
Autor: anton • November 24, 2010 • 793 Words (4 Pages) • 2,445 Views
The Macro Environment
Using PEST analysis in Singapore to look at how the Political, Economics, Social and Technology changes are impact the needs of Information Technology.
Political & Economy
SingaporeÐ²Ð‚™s GDP is on an accelerated growth beginning in late 2005 and early 2006, while the last 6 months has seen growth between 8.5% to 11%, the government is projecting a sustainable 5 ~ 7% GDP growth. This surge in business confidence is manifested in several sectors, the property market as well as the Straits Times Index (STI) is at valuation levels last seen in 1995 ~ 1996. (http://www.abcmoney.co.uk/news/102007100154.htm )
Since Singapore is largely manufacturing-led (35% of GDP) and export driven, it is tied to global economies especially the US and regional economies such as India and China and other ASEAN countries (Malaysia, Thailand, Indonesia, Vietnam, Philippines, Myanmar and Cambodia). While there are signs of a slow-down in the US or at the least a Ð²Ð‚ÑšGoldilocksÐ²Ð‚Ñœ soft-landing, the affect on Asia will not be like the 1997 financial crisis.
However, The manufacturing sector is slowly declining in its importance in Singapore as more FMCG (Fast moving consumer product) manufacturing are located to Indonesia and Thailand while High-tech manufacturing are relocated to the semi-conductor belt in Penang, Malaysia. In its place, the Financial Services is the fastest growing sector in Singapore, the growth areas are Private Banking, Consumer loans (Credit Card) and Investment banking. UBS and Deutsche Asset Management have recently announced their intention to relocate their Private Banking practice to Singapore.
Politically, issues in the restive south of Thailand and disturbances in the Mindanao province of Philippines are seen to be insulated to each country, the regional political atmosphere is largely stable. Even the ouster of ex-Prime Minister Thaksin Shinawatra and the investigation of the sale of his mobile operator AIS to SingaporeÐ²Ð‚™s Temasek holding has not dampened the business cooperation between Thailand and Singapore. (http://www.stratfor.com/products/read_article.php?id=290769 ).
All this bodes well for the IT sector as companies are increasing the capital expenditure for capacity upgrades as well as technology refresh. While Singapore unit shipment volumes arenÐ²Ð‚™t available, IDC expects that the overall unit volumes of hardware is expected to grow by 9.1% CAGR from end-2006 to 2011 for the while Asia Pacific region. (See Appendix for IDC projected Unit Volumes, page 82.)
Social and Technology Changes
To sustain the prevailing GDP growth rate, Singapore has had to rely on foreign talent in the past 10 years, this was accelerated since 2001, and Singapore has about 600,000 skilled workers mainly in the technology and financial services sector. (Ð²Ð‚ÑšHas Foreign talent contributed to SingaporeÐ²Ð‚™s economic growth ?
http://app.mti.gov.sg/data/article/356/doc/ESS_2001Q3_ForeignTalent.pdf ). This trend is expected to continue where half the workforce will be staffed by foreigners by 2034.