The idea that Singapore's economy can be supported by the domestic consumer seems almost absurd, given its small population and reliance on exports for growth. But underestimating the strength of the Singapore consumer in helping to lift the economy is unwise. Singaporeans can spend, and spend enough to lift the economy ? as 2011's numbers show. In a piece written for The Straits Times, Mr Ho Kwon Ping, executive chairman of Banyan Tree Holdings [and SMU chairman] , argued that Singapore has a two-tier economy when it comes to productivity. On one hand is a high-productivity and skills-competitive export economy (which includes not just manufacturing, but also financial and other services) and, on the other, a low-efficiency, unsustainable domestic economy, he said.
The Straits Times