QUESTION : Why singapore's economy was extremely vulnerable during 1997 major economic crisis?

The Asian Crisis The countries in Southeast and East Asia were struck by a major economic crisis in mid-1997. Exhibit 1 provides macroeconomic information on regional economies. As speculative pressures against the local currencies mounted, there was an exodus of foreign capital from the region causing severe economic dislocation. The sharp devaluation of currencies, starting with the Thai Baht, continued through the latter half of 1997. Many of the crisis-affected countries suffered their worst economic recessions for decades the following year (1998). Several factors rendered the Singapore economy extremely vulnerable to the crisis. These included the economy's small size, relative openness to external trade (foreign trade amounted to over 300% of GDP). Transformation of De Bank heavy reliance on foreign investment and MNCs (Over its long term rate. However, strong fundamentals 3.000 MNC affiliates in manufacturing, biotechnology, including a balanced budget, large foreign reserves and information technology, electronics, engineering a strong banking system allowed Singapore to chemicals, financial services and business services withstand the effects of the crisis more effectively than sectors accounted for 18% of registered companies, and its neighbors. Though the Singapore dollar depreciated approximately 60% of total assets in the corporate marginally against the US dollar, in real terms it sector). Consequently , maintenance of macroeconomic steadily appreciated against regional currencies. As a stability and a climate conducive to the inflow of result demand for its exports started shifting to foreign investment was an overriding policy objective neighboring countries. To restore competitiveness, the for the Singapore government government implemented a series of policies to reduce Singapore felt the full impact of the crisis in 1998, labor costs and lower taxes. when GDP growth slowed down to 1.5%, much below