The widening income gap between the rich and poor is a significant impact of globalisation for Singapore.

However, there are also other significant impacts of globalisation as well. Widening income gaps refer to the gap in income between the richest and poorest class of people in Singapore. Richer people in Singapore are able to invest and expand their wealth further by going overseas. However, poorer people at the bottom of the income gap do not have these resources to invest or to set up a company to increase their wealth. So as richer people in Singapore get richer by investments, poor people in Singapore do not have a fair share of Singapores annual revenue because they do not have the capital to invest. Globalisation has increased this gap and as rich people can go overseas to earn more money because of globalisation, it has increased the income gap dramatically. Improvement in standard of living refers to the increase of income levels, through trade and foreign investments which will then lead to revenue earnings. Governments use these revenues for education, health, defence, housing and transportation. The people living in Singapore can thus benefit and can enjoy a higher standard of living. The improvement of standard of living in Singapore can be shown from the World Bank's social and economic indicators. With free trade, consumers can purchase a variety of foreign goods apart from local goods. Therefore, this will allow the choices in lifestyle to be increased, and hence, enabling the people to lead a better quality of life. Thus, it is also a significant impact of globalization for Singapore. Increased competition among nations in investments and markets is another significant impact of globalisation for Singapore. Globalisation led to countries facing more intense competition so that Trans National Corporations (TNCs) seek out location to help them lower the production cost of their items. As such, countries compete with each other secure the deal and to get them to invest in their countries. China was one of the major countries that needed more foreign investors and welcomed them in the late 1970s. China was the top choice for many foreign as it offered lower production costs as compared to others. This caused many cities such as Suzhou, Wuxi and Dalian to develop quickly and get modern facilities. Globalisation is a serious economic impact as it allowed countries to be more competitive and attract more investors into their country which will in turn help them generate revenue and allow them to get more modern facilities. This is a cycle as more investors would be attracted to the country which has advanced facilities and because they invest in the country, the country is then able to prosper and get the facilities needed. Weighing all the points, I believe that widening income gap is the most significant impact of globalisation for Singapore as it will last for the longest period of time. If the income gap between the rich and poor in developed countries is very wide, resentments will arise among the people. This will increase the tension and the possibilities of social problems. The rich prosper from better economic opportunities while the poor or lowly-skilled will suffer

retrenchments and the loss of income. If conflict or violent protest breaks out, the country will take a very long time to recover from the loss. Thus, the widening income gap is the most significant impact of globalisation for Singapore.

Group 3 Tan Wen Yi, Nicholas Yeo, Choi Cai Ying, Tan Zi Jian