Page 125 - Theoretical and Practical Interpretation of Investment Attractiveness

In 2020, high-tech industries grew by 11 percent, with growth mainly in the ICT and
pharmaceutical industries. Among the Asian countries, the growth in Japan remained stable
and reached 15 billion dollars in 2019 and 17 billion dollars in 2020.
35% of the respondents who took part in the survey noted the digital industry as the
main driver that will ensure the development of the European economy in the near future.
Therefore, in the next five years, the EU will invest 50 billion in this industry. plans to spend
EUR.
In order to deepen our research and enrich its level, we will also analyze the experience
of Singapore.
A country with a high level of development, a high level of experience and high
intellectual potential, a country with a small population, but a significant reputation in the
field of computer software development and telecommunications, per capita in the reports
published by the World Bank Singapore, which ranks 3rd in terms of GDP production
(purchasing power parity) and is one of the "Asian tigers", has accumulated rich experience
in improving the investment environment and increasing its attractiveness.
In 1959-1990, under the leadership of Lee Kuan Yew, major reforms were implemented
in Singapore to modernize the country. As a result, Singapore became known as a country that
created a man-made civilization in Southeast Asia and became the financial and commercial
center of the world. That is why the number of people who are interested in knowing what
are the reasons for the economic growth of this miracle country is increasing.
We also find it necessary to share some analysis. From our research, a summary of the
investment environment created there and the socio-economic, political-organizational and
legal-administrative reforms implemented to improve it, as well as some of our comments
and conclusions.
The opinion of all scientists who have dealt with the development path of the Singapore
state, the "economic miracle" it has achieved, goes back to one important point. It is also the
creation of a favorable investment environment in Singapore. It is precisely because of this
situation that many projects were implemented by investors in this new country, and the
volume of GDP increased sharply year by year. Even today, capital funds are directed to the
state of Singapore by investors without hesitation. The attractiveness of the investment
environment there is the reason for the constant interest of donor countries.
The health and attractiveness of the investment environment can also be assessed
through macroeconomic indicators reflecting the socio-economic status of the country.
According to the World Bank (WB) classification, Singapore is one of the countries
with the highest income 147 . According to WB, Singapore has the third highest per capita
income in the world. Another important indicator that affects the investment climate is the
inflation rate. The lower the inflation rate, the higher the investment attractiveness. In 2005,
the inflation rate in Singapore was 0.5 percent, and by 2014 it was 1.5 percent.

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