Short answer? Yes.
Lacking natural resources, all the country has to offer is the
services of its people. If the cost of living continues to rise
(pricing Singaporean labour out of a competitive world market), and
if Singapore does not keep up with world standards, a collapse is
entirely possible.
Is it likely? I hope not. For the first 20 years of Singapore's
independence, the government did a brilliant job because it
understood Singapore's position as a newly-industrialised country
that could produce quality goods at a competitive price, especially
with a population that was willing to shut up and do what it was
told. Over the next 20 years, they lost the edge because they
failed to recognise the need for the country to evolve in line with
the economy. Now we've got panicked efforts to make Singaporeans
more creative and enterprising, but at the same time, the advantage
given to GLCs make the playing field far less than even. Right now
it's up to the government to quit yanking on the leash, and instead
to let Singaporeans go out and do their thing in a less
strictly-regulated environment.
