Since its independence, Singapore has been a symbol of organization and success, particularly economic. But these days, the big news in town is the economic slowdown in the Southeast Asian region. Singapore grew 7.8% in 1997 – a huge figure considering the US target is no more than 3% per year. In the last quarter (Q3), Singapore's economy shrank by 1.5%. If the fourth quarter also contracts, it will be considered a recession. The 1.5% drop is the first contraction in 13 years, once again a tremendous achievement. Even the unemployment rate rose from just 2.3% to 4.5% in September and is expected to approach 7% in 1999. The recent economic collapse of many Southeast Asian countries has hurt Singapore for several reasons. As a major port, a huge amount of trade from countries like Indonesia and Malaysia passes through Singapore. With the recent negative economic events in these countries, Singapore ports as well as investments in Singapore have declined. Much of the growth maintained by Singapore has been attributed to the strength of the US economy. As the US economy is challenged, Singapore's economy is under even more pressure. Singaporeans fight back. They have recently started to reduce business costs by initiating wage restrictions. They also reduced contributions to the Central Provident Fund. Then, they try to improve the competitiveness of their exports. They are also encouraging their banks to merge and further liberalizing their financial sector in order to attract more foreign investment. Additional funds will be used for infrastructure as well as education. High-tech companies will also get additional help. Finally, the objective is to prevent the restriction of the free movement of capital, goods and services. Just recently, in November, Singapore took the first steps in merging its futures market with its stock exchange to make their markets more efficient. The country has also hired several people to study its long-term competitive position. The educational objectives remain to have one computer for two students. Plans are expected to be published soon for a reduction of at least 10% in the Central Provident Fund. The beauty of Singapore is that the break should be completely accepted with little more than a cry. In fact, this decision is fully supported by most Singaporeans..