This posting researches and explains the factors behind economic growth in Hong Kong and Singapore

International trade in Southeast Asia is pinpointed to several different places. In particular, this region is a source both as a starting or halfway point for everyday goods and services. This area is quite advantageous because it borders the South China Sea, one of the busiest seafaring oceans in the world. The economic impact for any country or city with a port in this region is greatly affected. From as far north as Hong Kong (Xianggang) to as far south of Indonesia, international trading is extremely productive. Due to its significant economic impact, this region embodies Hong Kong and Singapore as its leaders in international trade (The Essential Atlas of the World, 2005).

According to recent history, Hong Kong and Singapore likely have some of the world's best economies. These cities encompass estimated populations of roughly ten million people between the two cities, making them some of the most densely populated cities in the world (State Gov, 2006). Due to such large populations, both cities have reached economic supremacy in two totally different ways. For example, Hong Kong was previously under British rule but opened its borders to trade with southern China (State Gov, 2006). With an influx of people heading to Hong Kong to work, it yielded economic success. Many other countries utilized Hong Kong for its manufacturing, finance, and commercial success as a model.

Singapore, on the hand, exhibits a highly skilled work force, making it attractive to investors around the world (State Gov, 2006). Although it has no natural resources, the government in Singapore became export-oriented and combined its pro business attitude; this combination promoted its economic success .(State Gov, 2006). In addition to exports, manufacturing is also a driving force in Singapore based largely because of its location on the South China Sea (State Gov, 2006).

Similarly, these two cities also possess an excellent tourism bureau that has earned top honors among travelers in the Far East. The tourism industry earns both cities billions of American dollars that contribute directly to their economies. This contribution results in Hong Kong's stable banking system and virtually no public debts. In addition, Singapore also has included tax cuts and rent reductions to lower costs of doing business there (State Gov, 2006).

The raw numbers associated with the economic success of Hong Kong and Singapore are outstanding considering the differing sizes of the two. Hong Kong uses its contacts from the UK, while Singapore must compete with Kuala Lumpur and its massive skyscrapers. The United States leads both cities in foreign investments and with its strong contribution of import and exports. Despite these factors, these two economic giants apply a formula that works for its people and for everyone around the world.

The most appealing method of growth between Hong Kong and Singapore that is encouraging for a newly industrialized economy is Singapore. Because of its location close to the South China Sea, along with its tax cuts, it is more advantageous. A main reason is that these factors lower the costs of conducting business there. This break alleviates pressure for a new business when having to deal with higher taxes. Both areas offer many benefits; it just depends on what type of business an investor is seeking to start.