Infrastructure and Skills: Some lessons from
Singapore’s experience
Parth S. Tewari, The World Bank Group
Bogota, July 17t...
Seven decades ago when over 90% of India was rural Mahatma
Gandhi had asserted that

"The future of India lies in it’s vil...
By 2050, 70% of the world will live in cities and this will have
significant implications
Cities Matter: socially, politic...
Today’s Discussion

• The World Bank Group context

• What makes a city competitive?
• Some lessons from the Singapore exp...
The World Bank Group’s mission is to reduce global poverty
which is delivered through five organizations
The World Bank

I...
Competitive Industries (CI) global practice operates at the
unoccupied middle, bridging macro and micro
Long-term shifts i...
CI initiated US$1 billion* in new projects in 2012

Not exhaustive

Macedonia
Developing high-value
manufacturing, unlocki...
CI is witnessing a surge in demand for lending and technical
assistance
2.5

$2.2 B
2

Lending
portfolio

1.5
1

$1 B

0.5...
Various product themes form part of CI engagements
1

3

4

• Investments (e.g. in SMEs) to raise local
economy’s share of...
CI has also empanelled a world-class advisory board to augment
our thinking and to enhance our delivery
1. Dato Sri Idris ...
Today’s Discussion

• The World Bank Group context

• What makes a city competitive?
• Some lessons from the Singapore exp...
City competitiveness is complex and requires an integrated
approach
Unlocking city competitiveness through CI
Collaboratio...
CITY GOVT

NATIONAL
GOVT

Some aspects of the five pillars are beyond “City Limits”
Inter-Ministerial
coordination
Project...
Roles and responsibilities of different agencies in infrastructure
development in Singapore

Air Transport Division
Overse...
Roles and responsibilities of different agencies in skills
development in Singapore

To develop local workforce
and to man...
Today’s Discussion

• The World Bank Group context

• What makes a city competitive?
• Some lessons from the Singapore exp...
Singapore punches above its weight by dynamic policy
implementation and by leveraging its geographic advantage
Singapore’s...
The country has covered a lot of distance in the last five decades…
1960

Today

• No natural resource endowment
• Minimal...
…and the approach is sustainable

Clean air: seeks to phase out diesel use from
factories and industries and to test susta...
Some guiding principles from the Singapore experience

Pragmatic and
dynamic planning

Customized best
practices with
shor...
Singapore’s economy has evolved to stay competitive – 1/2

Import substitution

1960 - 1964

Export
Orientation and
Labor-...
Singapore’s economy has evolved to stay competitive – 2/2
Export
Orientation and
Labor-intensive
Manufacturing

Import Sub...
A well designed focus on petrochemical has made Singapore
Asia’s #1 oil hub
2011 manufacturing output: S$285 B
Jurong Isla...
Jurong Island’s plug and play infrastructure maximizes
value creation

- “Plug and play" infrastructure, saves costs throu...
Skill development covering formal education and vocational
training led to significant productivity improvements for the s...
Industry-specific skill building moves students to growth
sectors, reduces over-supply in lag industries

Ministry of
Manp...
Institute of Technical Education ITE
• Established as a post-secondary technical
education institution in 1992 to promote
...
Singapore’s economy has evolved to stay competitive
Export
Orientation and
Labor-intensive
Manufacturing

Import Substitut...
With changing times, Singapore is pursuing a new frontier yet
again
In the 1990s Singapore decided on a strategy to widen ...
Biomedical sciences identified as one of the sunrise industries
Market sensing approach to sector
prioritization
• Growing...
Co-location of research, delivery, private, public at the biotech
cluster creates opportunities for integrated offerings

...
The cluster helps local and global scientific minds collaborate
Developing home-grown scientific talent
 In 1987, Institu...
Some guiding principles from the Singapore experience

Pragmatic and
dynamic planning

Customized best
practices with
shor...
Some lessons from the Singapore experience
Pragmatic and dynamic
planning

Coordinated execution
with accountability acros...
Some questions for Bogota to further the discussions

• What are the constraints to Bogota becoming a globally
competitive...
GRACIAS!
Parth S. Tewari
Head, Competitive Industries Practice
Finance and Private Sector Development Network
The World Ba...
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Enhancing City Competitiveness of Bogota

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Keynote Address at the Forum on Industrial Policy and City Competitiveness in Bogota, Colombia. Hosted by Secretariat for Economic Development of Bogota and City and UN Habitat

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  • He said this for a couple reasons:XX percent of India at that time used to live in its villagesWe believed that a cell based structure was the most robust way for widespread growth
  • WInfrastructure to be built and improved to sustain rapid urbanization$53 trillion in global infrastructure investment needs over next 20 years: OECDRequired 25 million km of paved roads; 335,000 km of rail tracks by 2050: IEAQuality infrastructure is a key pillar of international competitivenessInfrastructure networks help integrate national markets, is trade enhancing, and positively impacts economic growthTop 3 infrastructure concerns: Effective models of public-private funding partnerships, long term green strategy and managing interdependencies between physical infrastructure and infostructureEducation and skills need to keep step250 million children worldwide unable to read and writeOne in 5 people aged 15 - 24 has not completed primary school and lack the basic skills for life and workEducated, skilled talent pool promotes innovation, attracts right industries, crucial for cities to re-invent themselves, generate more quality human capital through imitation effects
  • http://app.mewr.gov.sg/data/ImgCont/1299/Chapter03-Vision&Goals.pdfBlueprint prepared by the Inter Ministerial Committee on Sustainable Development.The Inter-Ministerial Committee on Sustainable Development (IMCSD) was set up in January 2008 to formulate a national strategy for Singapore’s sustainable development in the context of emerging domestic and global challenges.The IMCSD is co-chaired by the Minister for National Development MrMah Bow Tan, and the Minister for the Environment and Water Resources DrYaacob Ibrahim. The members are: the Minister for Finance MrTharmanShanmugaratnam, the Minister for Transport Mr Raymond Lim, and the Senior Minister of State for Trade & Industry Mr S Iswaran.
  • Forward looking, integrated planningOverriding objective for employment growth.Flexible, adaptive, responsive to market signalsSpecific targets for agencies defined after negotiations with parent Ministry.Ambitious in the long term, practical in the short termEmpowered Agencies, criticalpublic goods- Agencies empowered to act, with sufficient budgetary support - Well qualified civil servants with benefits and flexibility to rotate.- Provide public goods that answer the most critical constraintsAddress cross cutting constraintsPublic-private partnerships to ensure skill up gradationInvesting heavily in a well coordinated transport system that improves inter and intra city connectivity- Integrated structure of urban development with long term plan of density linked to transportation nodes.Incorporating international best practices - International advisors on government committees to provide policy inputs and help strategize.- New growth frontiers inspired by East Asian success (value added mfg from Korea/Taiwan, shipping cluster inspired by Rotterdam/Antwerp, North Carolina research triangle, Silicon Valley models)Pegging performance to milestones- Public service quality pegged to performance benchmarked to milestones.Variable bonuses, high public salaries to attract best talent‘Corporate culture’ in government, with regular feedback loops.
  • 1960 – 64RegulatoryEnv: import tariffs and quotas to protect infant domestic mfgUrban Infrastructure: Establishment of EDB in 1961, Development of Jurong Industrial Estate begins with close coordination between JTC and EDBSkills and Capabilities: “Survival driven” phase, of expanding basic education quickly, Singapore Vocational Institute established within schools systemFinancing: S$100 million starting grant for EDB develop industrial estates, provide utilities. Self-funding, loans from revenue surpluses. Only small % from foreign grants.Innovation and technology: generic standard factories, plug and play industrial environment. Key industries: Printing & publishing, food manufacturing, beverages1965 – 85RegulatoryEnv:Nationalized companies in areas where private sector lacked capital and expertise; Dev Bank of SGP launched wave of investment into local firmsUrban Infrastructure: URA’s 1971 concept plan provided industrial estatesSkills and Capabilities: Technical Education Dept (TED) under Ministry of Education to oversee development of technical secondary education, teachers training;Industrial skills training centers in collaboration with Tata, Rollei and Phillips; Industrial Training Board created to centralize, coordinate and intensify industrial trainingFinancing: Attracted foreign investors to manufacturing and financial sectors; Economic Expansion Incentives Act which granted foreign MNCs 5 years of tax concessions for new investment.Innovation and technology: Key industries: Initially garments, textiles and toys. Moved into electronics like semi-conductors, integrated circuits, personal computers, printed circuit boardsand disc drivesKey companies: Texas Instruments, Seagate Technology, STMicroelectronics, Murata Manufacturing Co and Venture, Tata of India, Philips of Holland and Rollei of Germany, Sony, SiliconGraphics, Lucent Technologies1986 - 97RegulatoryEnv:Urban Infrastructure:Skills and Capabilities: Financing: Innovation and technology: Key industries: Petroleum Refining, Transport Equipment & Oilrigs,Electronic Products & ComponentsKey companies: Chevron Philips, Exxon Mobil, Eastman Chemical, Shell and Sumitomo Chemical97 - 2010RegulatoryEnv:Urban Infrastructure:Skills and Capabilities: Financing: Innovation and technology: Key industries: Electronics,Chemicals, Precision & Transport Engineering, Biomedical ManufacturingKey companies: GlaxoSmithKline, Aventis, Pfizer, Baxter, and Wyeth
  • Practice-oriented curriculum, process-based teachingIT-based teaching and learning environment
  • http://www.oecd.org/countries/singapore/46581101.pdfManpower Ministry works with EDB (responsible for promoting specific industry groups) to identify critical manpower needs and project demands for future skills. Ministry of Education and the institutions of higher and post-secondary education then use these skill projections to inform their own education planning, especially for universities, polytechnics and technical institutes.. Manpower planning approach helps students to move faster into growing sectors, reduces oversupply in areas of declining demand, and targets public funds more efficiently for post-secondary education. Institutional level: policy and implementation consistency through close relationship between the ministry of education, the national institute of education (the country’s only educator training institution), and schools. the ministry is responsible for policy development, while nieconducts research and provides pre-service training to educators. nie’s research is fed back to the ministry and is used to inform policy development Since nie professors are regularly involved in ministry discussions and decisions, it is relatively easy for nie’s work to be aligned with ministry policies. nie is Singapore’s only institution for training prospective teachers, but professional in-service development for teachers comes from various institutions/sources besides nie.
  • As a matter of policy, all students in Singapore receive 10 years of general education in schools. Upon completion of secondary education,about 90% of a student cohort will progress to post-secondary education and training in Junior Colleges, Polytechnics or the institutes of ITE. JuniorColleges provide an academic high school education for the top 25% of a school cohort who prepare for a university education. The next 40% of school leavers would enter the Polytechnics for a wide range of practical-oriented three-year diploma courses in engineering and technology, applied sciences,business and health sciences. The lower 25% of a school cohort, in terms of academic abilities, are oriented towards vocational technical education and training in ITE. These students receive training in a wide range of full-timeNational ITE Certificate (Nitec) courses in engineering, info-communications,applied sciences and business or apprenticeship training. Within the national education and training system are formal pathways for those who have donewell to progress from the ITE to the Polytechnics, and Polytechnics to the Universities.
  • 1960 – 64RegulatoryEnv: import tariffs and quotas to protect infant domestic mfgUrban Infrastructure: Establishment of EDB in 1961, Development of Jurong Industrial Estate begins with close coordination between JTC and EDBSkills and Capabilities: “Survival driven” phase, of expanding basic education quickly, Singapore Vocational Institute established within schools systemFinancing: S$100 million starting grant for EDB develop industrial estates, provide utilities. Self-funding, loans from revenue surpluses. Only small % from foreign grants.Innovation and technology: generic standard factories, plug and play industrial environment. 1965 – 85RegulatoryEnv:Nationalized companies in areas where private sector lacked capital and expertise; Dev Bank of SGP launched wave of investment into local firmsTechnical Education Dept (TED) under Ministry of Education to oversee development of technical secondary education, teachers trainingUrban Infrastructure: URA’s 1971 concept plan provided industrial estatesSkills and Capabilities: Industrial skills training centers in collaboration with Tata, Rollei and Phillips; Industrial Training Board created to centralize, coordinate and intensify industrial trainingFinancing: Attracted foreign investors to manufacturing and financial sectors; Economic Expansion Incentives Act which granted foreign MNCs 5 years of tax concessions for new investment.Innovation and technology: 1986 - 97RegulatoryEnv:Urban Infrastructure:Skills and Capabilities: Financing: Innovation and technology: 97 - 2010RegulatoryEnv:Urban Infrastructure:Skills and Capabilities: Financing: Innovation and technology:
  • In the 1990s Singapore decided on a strategy to widen its industrial and service sectors Manufacturing was being displaced by services as a proportion of GDPFinancial and business services took off but were maturing Next growth trajectory would come from that higher value added services that would need research based cluster of activities. The Research, Innovation and Enterprise Council set the agenda and sector for promotionNew science institutes were set-up such as the Institute of Molecular and Cell Biology and Singapore Institute for Clinical SciencesThe relevant ministries are called upon to set in place appropriate actions to effect the policy direction. The various agencies under the ministries then create action plans that support these directions from the ministries. The research institutes and laboratories then become recipients of funds for their selected programs. There is a consistent application of policy prescriptions across the ministries and vertically through to the different research agencies, thereby providing a glue for pursuing different research programs
  • co-location of public and corporate offers unprecedented opportunities for the integration of scientific capabilities. Not only does it fosters close linkages by stimulating interdisciplinary research, it further acts as a catalyst in forging international links with renowned scientific institutions through research and graduate training partnerships. As a result of the close collaboration between the biomedical sciences and physical sciences here, private companies can also draw on the capabilities and expertise of the research community to grow their businesses. Phase 1 of Biopolis comprises of a seven-building complex linked by skybridges and offers a built-up area of 185,000 sqm and two buildings, Chromos and Helios, are dedicated to biomedical players from the private sector.54 The other five buildings (Centros, Genome, Matrix, Nanos and Proteos) house five of the seven biomedical research institutes under the Agency of Science, Technology and Research (A*STAR), Singapore's lead agency for scientific research and development under the aegis of the Ministry of Trade and Industry and they are the BioInformatics Institute (BII), the Bioprocessing Technology Institute (BTI), the Genome Institute of Singapore (GIS), the Institute of Bioengineering & Nanotechnology (IBN) and the Institute of Molecular and Cell Biology (IMCB).55This research community is fully supported by state-of-the-art infrastructure including shared resources and services catering to the full spectrum of R&D activities andgraduate training.56 Phase 2 of Biopolis, which adds another 37,000 sqm of built-up area, was opened in October 2006 and is expected to achieve occupancy by end 2007 and two new buildings, Neuros and Immunos, will house public research units as well as corporate R&D laboratories. Biopolis is part of a master plan for a much larger 200-hectare development known as one-north and there are provisions for expansion to cater to a growing demand for biomedical R&D space.Following the completion of Biopolis Phase 1 and 2, the Singapore government is anticipating the demand for more biomedical R&D space beyond 2007 and so the one-north Master Plan identifies the land south of the Biopolis for future development of biomedical facilities.58 Targeting mainly private research institutes and incubator research activities, Biopolis 3 is a multi-tenanted research facility which will bridge private and public sector research work by encouraging close collaboration and is intended to extend basic research activities into other segments of translational and clinical research, as well as medical technology (MedTech) research.59
  • co-location of public and corporate offers unprecedented opportunities for the integration of scientific capabilities. Not only does it fosters close linkages by stimulating interdisciplinary research, it further acts as a catalyst in forging international links with renowned scientific institutions through research and graduate training partnerships. As a result of the close collaboration between the biomedical sciences and physical sciences here, private companies can also draw on the capabilities and expertise of the research community to grow their businesses. Phase 1 of Biopolis comprises of a seven-building complex linked by skybridges and offers a built-up area of 185,000 sqm and two buildings, Chromos and Helios, are dedicated to biomedical players from the private sector.54 The other five buildings (Centros, Genome, Matrix, Nanos and Proteos) house five of the seven biomedical research institutes under the Agency of Science, Technology and Research (A*STAR), Singapore's lead agency for scientific research and development under the aegis of the Ministry of Trade and Industry and they are the BioInformatics Institute (BII), the Bioprocessing Technology Institute (BTI), the Genome Institute of Singapore (GIS), the Institute of Bioengineering & Nanotechnology (IBN) and the Institute of Molecular and Cell Biology (IMCB).55This research community is fully supported by state-of-the-art infrastructure including shared resources and services catering to the full spectrum of R&D activities andgraduate training.56 Phase 2 of Biopolis, which adds another 37,000 sqm of built-up area, was opened in October 2006 and is expected to achieve occupancy by end 2007 and two new buildings, Neuros and Immunos, will house public research units as well as corporate R&D laboratories. Biopolis is part of a master plan for a much larger 200-hectare development known as one-north and there are provisions for expansion to cater to a growing demand for biomedical R&D space.Following the completion of Biopolis Phase 1 and 2, the Singapore government is anticipating the demand for more biomedical R&D space beyond 2007 and so the one-north Master Plan identifies the land south of the Biopolis for future development of biomedical facilities.58 Targeting mainly private research institutes and incubator research activities, Biopolis 3 is a multi-tenanted research facility which will bridge private and public sector research work by encouraging close collaboration and is intended to extend basic research activities into other segments of translational and clinical research, as well as medical technology (MedTech) research.59
  • Forward looking, integrated planningOverriding objective for employment growth.Flexible, adaptive, responsive to market signalsSpecific targets for agencies defined after negotiations with parent Ministry.Ambitious in the long term, practical in the short termEmpowered Agencies, criticalpublic goods- Agencies empowered to act, with sufficient budgetary support - Well qualified civil servants with benefits and flexibility to rotate.- Provide public goods that answer the most critical constraintsAddress cross cutting constraintsPublic-private partnerships to ensure skill up gradationInvesting heavily in a well coordinated transport system that improves inter and intra city connectivity- Integrated structure of urban development with long term plan of density linked to transportation nodes.Incorporating international best practices - International advisors on government committees to provide policy inputs and help strategize.- New growth frontiers inspired by East Asian success (value added mfg from Korea/Taiwan, shipping cluster inspired by Rotterdam/Antwerp, North Carolina research triangle, Silicon Valley models)Pegging performance to milestones- Public service quality pegged to performance benchmarked to milestones.Variable bonuses, high public salaries to attract best talent‘Corporate culture’ in government, with regular feedback loops.
  • Did they kill any industry????
  • Enhancing City Competitiveness of Bogota

    1. 1. Infrastructure and Skills: Some lessons from Singapore’s experience Parth S. Tewari, The World Bank Group Bogota, July 17th, 2013 1
    2. 2. Seven decades ago when over 90% of India was rural Mahatma Gandhi had asserted that "The future of India lies in it’s villages“ 2
    3. 3. By 2050, 70% of the world will live in cities and this will have significant implications Cities Matter: socially, politically and economically  Emerging points of engagement and delivery for corporations  Nodes of growth outperform rest of the country and generate ideas that shape the world  Urbanization structurally changes social fabric Effective models of public-private funding partnerships Long term green strategy Hard infrastructure and soft infrastructure 3 $53 trillion of global infrastructure investment needed in next 20 years + One in 5 people aged 15 - 24 has not completed primary school and lack the basic skills for life and work
    4. 4. Today’s Discussion • The World Bank Group context • What makes a city competitive? • Some lessons from the Singapore experience 4
    5. 5. The World Bank Group’s mission is to reduce global poverty which is delivered through five organizations The World Bank International Bank for Reconstruction and Development International Development Association International Finance Corporation 5 Multilateral Investment Guarantee Agency International Centre for Settlement of Investment Disputes
    6. 6. Competitive Industries (CI) global practice operates at the unoccupied middle, bridging macro and micro Long-term shifts in broad development Economy-wide Government investment, policies to provide public goods with high economic returns Unlocking investments, growth and jobs Spatial; value chain; industry levels Private sector investment Short-term development outcomes at smaller scale (e.g. through better financing and strategies) Firm-level 6
    7. 7. CI initiated US$1 billion* in new projects in 2012 Not exhaustive Macedonia Developing high-value manufacturing, unlocking the potential for agribusiness and upgrading trade logistic services Afghanistan Creating a resource growth corridor around large-scale mine investments Realizing potential of Buddhist tourist circuit West Bank/Gaza Value chains in agribusiness and ICT Haiti Developing tourism destinations and enterprises in the north of the country, around citadels, national park, and cultural heritage Brazil Economic competitiveness components in subnational projects India Vietnam Regional industrial competitiveness project to develop jobs in the refinery value chain Niger Indonesia Development of meat and butchery industry and supporting mining value chains City competitiveness planning and analysis capacity building (labs) Africa: multiple countries Growth poles and Value Chain projects in Mozambique, Nigeria, Burkina Faso, Madagascar, DRC, Senegal, Kenya, Ghana, Ethiopia, Cote D‟Ivoire and Tanzania. * Actual or estimated loan commitment 7
    8. 8. CI is witnessing a surge in demand for lending and technical assistance 2.5 $2.2 B 2 Lending portfolio 1.5 1 $1 B 0.5 0 Last Year Technical assistance This Year 50+ advisory projects providing high-level knowledge and TA to governments, including 12 in conflict affected countries 8 Some new projects • Vietnam regional competitiveness • Haiti Business Development and Investment Project • Mozambique Integrated Growth Poles Project • Macedonia Competitiveness DPL Timely new knowledge • Competitive SMEs paper • Africa Competitiveness Report 2012 • Sector Prioritization toolkit • Growing Africa: Unlocking the Potential of Agribusiness • Industrial Policy Implementation
    9. 9. Various product themes form part of CI engagements 1 3 4 • Investments (e.g. in SMEs) to raise local economy’s share of an industry‟s upward and downward value chain, facilitate moving up the value chain, and build clusters. Competitive SMEs • Inclusive policies and initiatives that support the development of a small but high potential section of SMEs, called competitive SMEs, which drive economy‟s competitiveness Zones and growth poles Competitive cities 5 • Areas of exceptional policy regime and public goods provision composed of competitive industry clusters • Targeted actions to unlock the growth potential of several industries based around an exogenous asset, through provision of public goods Analytical approaches 2 Value chains and linkages • Policies and investments at an urban level to create more competitive local urban economies based on a city‟s „economic vocation‟ Common objective: remove the binding constraints to rapid growth of competitive industries 9 • Analytical tools to diagnose the problem (i.e., what constraints are most important) and optimal solutions (i.e., what actions yield greatest economic return) • Cross-cutting for all other products, or offered as stand-alone
    10. 10. CI has also empanelled a world-class advisory board to augment our thinking and to enhance our delivery 1. Dato Sri Idris Jala, CEO, PEMANDU 7. Prof. Dani Rodrik, Harvard University 2. Shri Arun Maira, India Planning Commission 8. Prof. Ricardo Hausmann, Harvard University 3. Prof. Eduardo Bitran, Ministry of Public Works, Chile 9. Prof. Charles Sabel, Columbia University 4. Prof. Antoni Subira, Ministry of Industry, Catalonia 10.Prof. Francis Fukuyama, Stanford University 5. Mr. Clinton Dimes, CEO BHP, China 11.Prof. Mushtaq Khan, SOAS 6. Mr. Kibati Mugo, DirectorGeneral, Kenya Vision 2030 Delivery Board 10
    11. 11. Today’s Discussion • The World Bank Group context • What makes a city competitive? • Some lessons from the Singapore experience 11
    12. 12. City competitiveness is complex and requires an integrated approach Unlocking city competitiveness through CI Collaboration between public and private: • to identify opportunities and constraints • to jointly agree on targeted support program • Jobs Demand for support • Incomes 1 2 3 4 Regulatory environment Infrastructure City specific financing Skills and capabilities Advisory services and technical assistance Coordination across stakeholders, joint policy dialogues Public and private financing, institution s, special purpose vehicles 5 Technology and innovation Private investment (e.g., IFC in firms, PPP) Programmatic support across WB and IFC 12 • Investments Guarantee services
    13. 13. CITY GOVT NATIONAL GOVT Some aspects of the five pillars are beyond “City Limits” Inter-Ministerial coordination Project Implementation Units Agency coordination Performance management PRIVATE SECTOR Ease of doing business Lobbying for industryspecific policy changes Regulatory Environment Highways Ports Airports National Grid PPP Laws Land Use plan Connectivity and access to markets Quality and availability of utilities implementing Infrastructure Projects Utility costs National Tax Revenues Fiscal Management Municipal Tax Revenues Road, Water Taxes Immigration Policies to attract talent Finance for Capital Up gradation National Skills Development Plan Innovation Policy Knowledge hubs Investing in R&D Linking firms with academia Adopting innovative technologies Talent Recruitment Investing in R&D Training Programs Adopting innovative technologies Skills Innovation City Bonds Equity and Debt Allocation of capital Urban Infra Financing 13
    14. 14. Roles and responsibilities of different agencies in infrastructure development in Singapore Air Transport Division Oversees the planning and development of civil aviation policies Provides inputs to and implements civil aviation policies in Singapore Corporatized; manages and reinvests in Changi Airport Sea Transport Division Oversees maritime policies Responsible for overall development and growth of port of Singapore Land Transport Division Oversees land policies which strive to maintain a world-class land transport Responsible for planning, operating, and maintaining land transport infrastructure and systems, including roads and train tracks Corporatized; Owns and operates operates Jurong Port Keppel and Pasir Panjang Terminals Owns and operates public bus and rail systems; listed on SGX Source: Various Singapore Government websites; Team analysis 14 Master Planning National land use planning authority; coordinates closely with infrastructure agencies on planning and implementation [Ministry of National Development] Industrial Park Planning and Development Plan, promote and develop industrial landscape [Ministry of Trade and Industry] Energy Market Regulator and Promoter Regulate and promote energy sector [Ministry of Trade and Industry] Infocomm Regulator and Promoter Regulate and promote infocomm sector [Ministry of Communications and Information]
    15. 15. Roles and responsibilities of different agencies in skills development in Singapore To develop local workforce and to manage foreign talent policies Directly manage primary, secondar y and preuniversity education providers Directly manage inflow of foreign talent through comprehensive system of To develop and strengthen the employment Continuing Education and passes, S-passes Training System to encourage and work permits lifelong learning and advancement Each of three universities exists as separate statutory board Institute of Technical Education exists as separate statutory board Council of Private Education Each of five regulates and polytechnics develops private exists as separate education statutory board providers Source: Various Singapore Government websites; Team analysis 15
    16. 16. Today’s Discussion • The World Bank Group context • What makes a city competitive? • Some lessons from the Singapore experience 16
    17. 17. Singapore punches above its weight by dynamic policy implementation and by leveraging its geographic advantage Singapore’s share of World Basis points 220 38 7.6 0.05 0 ~0 Land Energy resources1 Basic Materials2 Human and natural endowments 1 Energy resources include petroleum, natural gas and coal 2 Basic materials scan included Iron ore, Copper ore, Bauxite Source: World Bank; USGS; EIA; Team analysis 17 Population GDP Trade
    18. 18. The country has covered a lot of distance in the last five decades… 1960 Today • No natural resource endowment • Minimal industrial base (mainly in non-durable consumer goods) • Withdrawal of British military base • Low education base • High unemployment (~9%) • Small domestic market and loss of a common market, i.e. Malaysia • Over-dependent on entrepot trade and servicing British navy base • #1 Ease of Doing Business • #1 Gallup Net Migration Index • #1 skilled labor in Asia-pacific • #2 WSJ Index of Economic Freedom • #2 in best investment potential (BERI) • #2 WEF Global Competitiveness Index • #11 Economist Quality of Life Index • Asia‟s most “Tech-ready” City, PwC Global IT Report Source: Various websites; Team analysis 18
    19. 19. …and the approach is sustainable Clean air: seeks to phase out diesel use from factories and industries and to test sustainable energy generation from hydrogen fuel and solar. Clean water: focuses on supplying water to all homes and industries through the national „Four Taps Strategy‟ of sourcing water from its own reservoirs, from Malaysia, from recycling (NEWater), and through desalination. Clean land: emphasizes the continuing recycling efforts at the national scale to ensure that virtually no waste will be going into landfills in 50 years. Source: Singapore‟s Sustainable Development Blueprint 2009 19
    20. 20. Some guiding principles from the Singapore experience Pragmatic and dynamic planning Customized best practices with short feedback loops Coordinated implementation with accountability across agencies 20
    21. 21. Singapore’s economy has evolved to stay competitive – 1/2 Import substitution 1960 - 1964 Export Orientation and Labor-intensive Manufacturing Capital intensive manufacturing 1965 - 1985 1986 - 1997 $50,000 Innovative competitiveness 1997 – 20XX $46,241 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $395 CAGR of 10.2% $0 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Source: Civil Service College of Singapore (May 2012) 21
    22. 22. Singapore’s economy has evolved to stay competitive – 2/2 Export Orientation and Labor-intensive Manufacturing Import Substitution 1965 - 1985 1960 - 1964 Innovative Competitiveness Capital-intensive Manufacturing 1997 – 20XX 1986 - 1997 Regulatory Environment • Import tariffs, quotas to protect infant manufacturing • Twin engines approach of manufacturing and services • Nationalized where private sector lacked expertise (GLCs) • Cluster development strategy adopted • Business friendly investment climate • Focus on higher value-added industries (e.g. biomedical sciences) Urban Infrastructure • Jurong Industrial Estate begins development • EDB established in ‟61 • URA‟s 1971 concept plan provided industrial estates just outside central ring • Plug-and-play industrial environment • Seven offshore islands reclaimed into Jurong Island • 2 technology corridors marked for development • URA instituted “impact-based” zoning • Industry-specific infrastructure prioritized Skills & Capabilities • Survival-driven phase • Basic education expands quickly • Technical Education Department set up at the Ministry of Education • Skills training centers with Tata, Rollei and Phillips • ITE established for high quality technical and vocational education. • Local industry upgrading program • Programs to nurture local science and R&D talent, and attract foreign high skilled labor introduced Financing •S$100 million start up grant for EDB •Loans to companies from revenue surpluses • FDI in manufacturing through Economic Expansion Incentives Act • Services growth through headquarter tax incentives • S$1 billion CDF launched to catalyze high growth clusters • EDBi, investment arm of EDB, sets up department for biomedical sciences • Singapore Sciences Park 1 built • National Computer Board formed • Close coordination between industry and tech institutes for technology sharing • Major resource commitment made to science and R&D in schools and colleges Innovation & technology • Generic standard factories Discussed further Source: Civil Service College of Singapore (May 2012) 22
    23. 23. A well designed focus on petrochemical has made Singapore Asia’s #1 oil hub 2011 manufacturing output: S$285 B Jurong Island: benchmark petrochemicals cluster  Single island formed in 1995 from 7 small islands  3000 hectares costs $7 billion in reclamation costs Singapore Is:  Asia‟s Leading oil hub (3rd largest trading hub globally)  Hosts 95 industry heavyweights, such as BASF, Celanese, Exxonmobil, Dupont, Mitsui Chemicals, Chevron Texaco, Shell and Sumitomo Chemical.  Drawn investments of US$42 billion and employs about 8,000 people as of 2012.  Top 5 export refining hub at a single location  Top 10 global chemicals hub Source: Economic Development Board of Singapore (Apr 2013) 23
    24. 24. Jurong Island’s plug and play infrastructure maximizes value creation - “Plug and play" infrastructure, saves costs through shared third-party utilities and services, and build synergy through product integration. - Logistics hub: storage tanks, chemical warehouses, tank filling, cleaning and maintenance, drumming and waste treatment facilities. Also used by companies to do trans-shipment, bulk breaking and distribution Source: Economic Development Board of Singapore (Apr 2013); JTC (Apr 2013) 24
    25. 25. Skill development covering formal education and vocational training led to significant productivity improvements for the sector Formal education Vocational training  Chemical Process Technology Centre (CPTC) trains recruits for energy and chemical industry  Institute of Chemical and Engineering Sciences undertakes world class research programs and processes for chemical industry.  ITE established as a post-secondary technical education institution in 1992  World-class facilities: ITE College East 2004, S$184.6 million), ITE College West 2010 $260 million, ITE College Central coming in 2013.  Highest proportion of locals employed and skills profile among manufacturing industries  Remuneration/worker for chemical sector is twice that of the manufacturing average Source: Economic Development Board of Singapore (Apr 2013); Speech by Minister of Trade and Industry (2009) http://www.news.gov.sg/public/sgpc/en/media_releases/agencies/mti/speech/S-20090925-1.print.html?AuthKey= 25
    26. 26. Industry-specific skill building moves students to growth sectors, reduces over-supply in lag industries Ministry of Manpower Specific Industry Groups Univs, Polytech nics and technical institutes Identify critical manpower needs; project demands for future skills. EDB Ministry of Education Use skill projections to inform education planning Results: - Across the board boost in skills in every job through partnership of enterprises, people, unions and government - Deepening capabilities among Singapore companies to seize opportunities in new markets and industries. - Making Singapore a distinctive global city to attract the best talent. Source: OECD Case Study on Singapore’s education system 26
    27. 27. Institute of Technical Education ITE • Established as a post-secondary technical education institution in 1992 to promote Vocational Training • Practice-oriented curriculum, process-based teaching • IT-based teaching and learning environment • High employability in the job market. Learning: • Policy shift towards Vocational Training to go hand in hand with development • Changing public perception and positioning ITE As a Post-Secondary Institution • Leveraging industry partners to develop specialized skills • Use ITE as a tool to attract right type or FDI Source: International Symposium on vocational training, keynote address by Dr. Law Song Seng, Director and CEO, ITE 27
    28. 28. Singapore’s economy has evolved to stay competitive Export Orientation and Labor-intensive Manufacturing Import Substitution 1965 - 1985 1960 - 1964 Innovative Competitiveness Capital-intensive Manufacturing 1986 - 1997 1997 - 2010 Regulatory Environment • Import tariffs, quotas to protect infant manufacturing • Twin engines approach of manufacturing and services • Nationalized where private sector lacked expertise (GLCs) • Cluster development strategy adopted • Business friendly investment climate • Focus on higher value-added industries (e.g. biomedical sciences) Urban Infrastructure • Jurong Industrial Estate begins development • EDB established in ‟61 • URA‟s 1971 concept plan provided industrial estates just outside central ring • Plug-and-play industrial environment • Seven offshore islands reclaimed into Jurong Island • 2 tech corridors marked for development • URA instituted “impact-based” zoning • Industry-specific infrastructure prioritized Skills & Capabilities • Survival-driven phase • Basic education expands quickly • Technical Education Department set up at the Min of Education • Skills training centers with Tata, Rollei and Phillips • ITE established for high quality technical and vocational education. • Local industry upgrading program • Programs to nurture local science and R&D talent, and attract foreign high skilled labor introduced Financing •S$100 million start up grant for EDB •Loans to companies from revenue surpluses • FDI in manufacturing through Economic Expansion Incentives Act • Services growth through HQ tax incentives • S$1 billion CDF launched to catalyze high growth clusters • EDBi, investment arm of EDB, sets up department for biomedical sciences • Singapore Sciences Park 1 built • National Computer Board formed • Close coordination between industry and tech institutes for technology sharing • Major resource commitment made to science and R&D in schools and colleges Innovation & technology • Generic standard factories Discussed further Source: Civil Service College of Singapore (May 2012) 28
    29. 29. With changing times, Singapore is pursuing a new frontier yet again In the 1990s Singapore decided on a strategy to widen its industrial base from manufacturing and service sectors to higher value added services that would need research based cluster of activities. Sets the agenda and sector for focus and promotion Relevant ministries called upon to set in place appropriate policies Relevant agencies create action plans to support direction from ministries Research institutes and laboratories then become recipients of funds for their selected programs Source: NRF presentation 2006 29
    30. 30. Biomedical sciences identified as one of the sunrise industries Market sensing approach to sector prioritization • Growing market for research in diseases prevalent in Asian ethnic groups • Exploitable gap, since US clamp down on stem cell research • Culture of celebrating science learning in Singapore, existing pharmaceutical manufacturing  2.4% of GDP spent on R&D in 2006  24,500 scientists and engineers employed  $18.8 bn of biomedical manufacturing output in 2007; $10.1 bn in value added 30
    31. 31. Co-location of research, delivery, private, public at the biotech cluster creates opportunities for integrated offerings • Phase 1: Two buildings dedicated to private sector biomedical players. Five more buildings house seven biomedical research institutes that are under A*Star. • Phase 2: Two more buildings house public research units, corporate R&D labs. • Phase 3: Multi-tenanted research facility bridges private and public sector research work 31
    32. 32. The cluster helps local and global scientific minds collaborate Developing home-grown scientific talent  In 1987, Institute of Molecular and Cell Biology set up at NUS  A*Star and EDB launch $1 bn scholarship program to fund undergraduate and graduate training for scientists  PhD students to work with leading global scholars, then continue PhD research in Singapore  Long gestation period signals commitment to developing the industry Attracting global talent  “Signaling” to wider industry that Singapore was creating a global biomedical industry  Attracted established leaders in the field to be part of new cluster  Nobel Prize winners and well known scientists take the helm of newly formed research institutes, IMCB and Genome Institute  Liberal policy for inward migration of high-skilled workers Forming a global network  Singapore Global Network: Karolinska Institute of Sweden, University of Sydney Cancer Centre, Cambridge University and US National Cancer Institute International Advisory Panels with top researchers  Biotech firms like Glaxo, Eli-Lily, Schering-Plough, Lonza use Singapore as a research base Source: Singapore government case study on biomedical cluster development 32
    33. 33. Some guiding principles from the Singapore experience Pragmatic and dynamic planning Customized best practices with short feedback loops Coordinated implementation with accountability across agencies 33
    34. 34. Some lessons from the Singapore experience Pragmatic and dynamic planning Coordinated execution with accountability across agencies Customized best practices with short feedback loops • Structural shift in economy four times over four decades • Ongoing Prioritization of sunshine sectors leveraging human capital strengths and high global demand potential • Land Acquisition Act allowed government to reclaim and amalgamate seven islands to form Jurong • Economic Expansions Incentives Act, OHQ Tax Incentives, ITE setting up, tie ups with Philips, Tata were pragmatic institutional responses to industry demands. • EDB, URA, JTC work in tandem to deliver Jurong cluster • EDB‟s BioOne Capital and BMSG work with A*Star‟s BMRC to support the biomedical cluster • Ministry of Manpower, Education and EDB work together to identify and mitigate skills gaps • Well qualified civil servants have flexibility to rotate and are paid well • Public service quality pegged to performance with variable pay • A carefully crafted culture of a learning society • International advisors on government committees to provide policy inputs and help strategize • New growth frontiers inspired by Korea/Taiwan‟s success in value added manufacturing • Biopolis inspired by North Carolina research triangle, Stanford/Silicon Valley nexus • Strong links with private sector allows constant feedback 34
    35. 35. Some questions for Bogota to further the discussions • What are the constraints to Bogota becoming a globally competitive city? What are urgent problems to solve in the regulatory, infrastructure, access to finance, skills and innovation pillars? • What are Bogota‟s next potential industry success stories and how can they be effectively energized? • How to implement competitiveness reforms in Bogota – what kind of pragmatic planning, execution support and international lessons does the city need? 35
    36. 36. GRACIAS! Parth S. Tewari Head, Competitive Industries Practice Finance and Private Sector Development Network The World Bank Group, Singapore ptewari@worldbank.org 36

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