Land scarce Singapore looks underground for space

We need resources to produce goods or services. The main resources that are applicable to the society are normally referred to the inputs or factors of production. 

There are four basic factors of production:

• land
• capital
• labour 
• entrepreneurship

We will soon face the problem of scarcity of these three factors as the resources are limited.

 

The concept of scarcity states that our human wants are unlimited while the resources is not. Scarcity occurs when human desire more things than the available resources can provide. With the limited resources we have, human have to make rational choices on the usage of resources to maximize their benefit and profit gain by sacrificing some goods or services. The value of giving up the goods or services is known as the opportunity cost.

Based on the link of the article below, we can see that Singapore is facing the problem of scarcity in land. The factories, buildings and the population in the country are increasing gradually but they have limited land space. 

Therefore, the Singapore government has started to look for solutions for this matter. They have a new plan for releasing land or ground for housing and industry by closing golf courses and army training ground and also paving over some of the nature reserves. The government has make a choice to lease the land or ground for housing and industry purpose and sacrifice golf courses and military ground. The value of giving up the golf courses and military ground is the opportunity cost.

Besides that, the Singaporean considered to develop and make full use of the underground space due the scarcity of land in the country. The Jurong Town Corporation has study and do research on the “underground” project. 

The corporation has overseen the construction of a huge underground oil bunker in rock cavern. As a result, a surface area of six petrochemical plants has freed up. To overcome the problem of land scarcity, the Singapore government and corporations has think of many solutions and also made sacrifices.

Written by: Lian Vickki 0315648

Resources: http://newsinfo.inquirer.net/363211/land-scarce-singapore-looks-underground-for-space