Compare HK and Singapore economic growth

HK and Singapore has experienced high economic growth rate in the past decade through different ways.

HK economic growth is mainly driven by the private sector while Singapore has adopted a state-led capitalism model.

In the past decade, Singapore's per capita gross domestic product surged 136 per cent (in US dollar terms), whereas Hong Kong's rose 37 per cent. During the decade, Singapore's GDP grew 196 per cent; Hong Kong's, 45 per cent.

Singapore's per capita income is about 40 per cent higher than that of the average Hongkonger's.

Singapore in the 1960s was a poor economy with limited industries and foreign investment, which caused high unemployment.

As unemployment eased and labour markets tightened, Singapore shrewdly moved away from labour intensive industries. It targeted foreign investment for high-end manufacturing, with a focus on capital-intensive industries in technology, services and research.

Still today, the Singapore government actively identifies the industries the city ought to be involved in, sets up supporting infrastructure, and attracts the necessary talent and investment.

In contrast, Hong Kong continued its laissez-fair private-sector driven economic model under the British government.

With the influx of commercial talent, capital and refugees fleeing from the civil war on the mainland, Hong Kong was able to get its industrial development going with the textile sector in the '50s, before gradually expanding in the '60s to manufacturing clothing, electronics, plastics and other labour-intensive products for export.

Hong Kong's economic development was led by SMEs, which created many jobs.

Nowadays, SMEs are still a main part in economic growth. SMEs can find more business opportunities on E-business portals.