Factors of production are basic determinants of what a country makes (Sternquist, 2007). The first factor of production is land. In Singapore, land is one of its slowest production. Singapore has a low domestic production rate of ten percent of total food consumption and nine percent of seafood consumption (World Bank, 2023). Despite its rich agricultural land and seaports, Singapore is dependent on imports, exports, and trade. Food, textiles, and petroleum products are the main exports, along with chemicals and technological equipment. Aircraft, crude oil, electronic components, iron, and steel are Singapore’s top imports (Observatory of Economic Complexity, 2023). The second factor of production is labor. The labor invested by individuals in producing goods and services. For the most part, Singapore does not have a minimum wage. The labor supply and market demand dictate wages. Companies pay their employees according to their experience, abilities, and competencies (Dezan Shira & Associates, 2023).
The third factor of production is capital. Singapore is listed as one of the world’s leading sources of capital investment. Singapore has made twenty-nine billion eight hundred million in capital investments in 2023 (Singapore Business Review, 2023). The final factor is entrepreneurship. Singapore is an innovative global hub. It is home to many tech startups. Block71 is a global business connector and ecosystem builder founded in Singapore with a focus on startups (Block71, 2023). This ecosystem has opened the doors for many small businesses providing networking and finance sources. In the last several years, over nine hundred investors have invested in these startups, seventeen percent being Singaporeans and eighty-six percent based outside of Singapore (NUS Enterprise, 2022).
