July 17th, 2012
05:26 PM GMT
Editor’s note: Outlook is CNN's in-depth look at business climates around the world. To August 12, 2012, we’re focusing on Singapore.
Singapore (CNN) – Singapore may rock when economic crises hit Europe or the U.S., but it is well placed to come through turbulent times, Piyush Gupta, CEO of DBS bank, told Richard Quest.
“Singapore gets buffeted quite widely,” he said, as its economy is closely correlated with the fortunes of the U.S., Europe and, to a degree, China.
The CEO of the Singapore-based bank since 2009, Gupta believes that the way the Singaporean government guides industry makes the city state more resilient than many.
“You try and build resiliency so that the ups and downs, while they are sharp on an average cycle, keep Singapore progressing well,” he said.
“The way the Singapore government does it is not by fear; it’s not a Soviet-style way of command control. The Singapore model uses market forces…to encourage industry to march to a particular rhythm.”
As a 30-year veteran of the banking industry Gupta thinks that perhaps Singapore’s approach could be a guide for others during unpredictable times.
“The last five years have taught us that every economy in the world needs to use some degree of market leavers and not just leave everything to market forces.”
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