This monograph written for the Institute of Policy Studies (Singapore) focuses on the structural weaknesses in the Singapore economy, in particular those which the author feels have been under-appreciated. Thus he pays special attention to the effect government intervention has had on the economy and finds that several unintended consequences of policy actions have accumulated over the years. Several of these have become serious constraints on Singapore's ability to adjust effectively to the rising challenges in the global and regional environments. With these aspects in mind, the monograph: analyses the nature of the challenges faced by the Singapore economy. assesses the structural weaknesses which inhibit effective adjustment to address them, and seek out their root causes. makes recommendations as to specific policy changes that are necessary. The author asserts that Singapore will retain a sufficient critical mass of regional manufacturing and service activities to remain a dynamic growth centre in the Asia-Pacific region, and that the impact of increasing competition, especially from China and Malaysia, has been exaggerated. It estimates that the Singapore economy can, if the right policy and corporate sector changes are made, grow at around 5% per annum for the coming decade. This is a positive outlook given that Singapore has already achieved one of the highest per capita GNP levels in the world. The Institute of Policy Studies (IPS) is a public policy think-tank established in 1987 under the patronage of the Prime Minister of Singapore. The IPS#s objectives are to: promote interest in and studies of issues which are of major concern to Singapore act as a bridge between the government, the business community, scholars, journalists and other opinion-makers in Singapore. To this end, the IPS: conducts research and publishes the findings. organises conferences, lectures, closed-door discussions and executive briefings.