Since its independence, Singapore has been a symbol of organization and success, especially economically. These days, however, the biggest news in town is the economic downturn in the Southeast Asia region. Singapore grew 7.8% in 1997, a huge figure considering that the US target is no more than 3% per year. In the latest quarter (Q3), Singapore's economy contracted by 1.5%. If the fourth quarter also contracts, it will be considered a recession. The 1.5% decline was the first contraction in 13 years, again an extraordinary feat. The unemployment rate also rose from 2.3 percent to 4.5 percent in September and is expected to approach 7 percent in 1999. The recent economic collapse of many Southeast Asian nations has hurt Singapore for several reasons. Being 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's ports and investments in Singapore are declining. Much of the growth Singapore has maintained has been attributed to the still-strong U.S. economy. With the American economy in serious crisis, Singapore's economy is under even more pressure. Singaporeans are fighting back. Recently they have started to reduce business costs by initiating wage restrictions. They also cut contributions to the Central Provident Fund. Next, they are trying to improve the competitiveness of their exports. They are also encouraging their banks to merge and making their financial sector more liberal to attract more foreign investment. Additional funds will be used for infrastructure and education. High-tech entrepreneurial firms will also receive additional aid. Ultimately, the goal is to prevent the restriction of the free flow of capital, goods and services. Just recently, in November, Singapore took the first steps in merging the futures market with the stock exchange, in order to make the markets more efficient. The country has also hired several people to study their long-term competitive position. The educational objectives remain those of having one computer for every two students. Plans to cut the Central Provident Fund by at least 10% are expected to be revealed soon. The beauty of Singapore is that the cut is expected to be fully accepted with little more than a tear. In fact, the move is fully supported by the majority of Singaporeans.