Effects of the Economic Downturn in Japan and Singapore

The current study examines the effects of the 2008 financial crisis on the Singaporean IT (Information Technology) sector and focuses primarily on the trends experienced thereupon among the various IT projects in progress within this industry. The importance of this crisis is highlighted by the fact that it forced Singapore into a drastic and critical recession and threatened to stall the entire southeast Asian economy. According to GDP (Gross Domestic Product) estimates, which were released by the Ministry of Trade and Industry of the government of Singapore, the country was expected to grow from -2% to 1% in the year 2009, an estimate lower by 1% to 2% as measured in November 2009 (Daniel 2010).
Beginning November 2008, global demand and investments in trade had been paralyzed and in turn had an adverse impact on several economic sectors in Singapore such as wholesale, retail, transport, and storage sectors. For instance, the manufacturing sector is estimated to have contracted by 3.7% in 2008 and is a bit better than the 5.8% contraction for the year 2007 (Bradley 2009). The services and construction sectors also registered a slower rate of growth by as much as 5.3% (the figures were an incredible 17.3% in 2007) (Bradley 2009). Laying a primary emphasis on mitigating job losses, the government of Singapore responded to the crisis by adopting several measures. Amongst them, one of the most significant initiatives implemented included a job-retraining program aimed at improving the professional skills of workers and to reduce the burden on businesses by paying for related expenses incurred over job training. In several other cases, the government also closed down several projects or instructed businesses to do so if it felt that they were too resource-intensive or hampering the reversal of the crisis (include author).
A broad review of related literature and news reports (include&nbsp.authors) suggests that the IT industry was generally favored and supported by the government during this period of economic recession and restructuring.&nbsp.