Updated slides for Strategies to sustain Singapore's economy.

1. How is Singapore affected
by globalisation?

2. 22nd June 2015

5. 22nd June 2015

7. What is Singapore’s situation right now?
• Disease outbreaks e.g. SARS, bird flu
• Rise of China and India as competitors
• Economic slowdown in other countries
• Ageing population
• Maturing domestic economy
• Transnational terrorism
• Integration of new
migrants

8. Biggie question…
• How does Singapore
earn enough money
to survive in the
world?
• How can Singapore
remain
competitive?

9. Strategies for survival
• Diversifying the economy
• Nurturing growth of Small and Medium
Enterprises (SME)
• Venturing abroad
• Expanding market reach through economic
cooperation
• Managing resources efficiently
– Developing people
– Attracting foreign talent
– Managing the environment

12. 1. Diversifying the economy
• Singapore aims to be a centre for technology-
intensive, high value-added manufacturing activities
such as chemical engineering and pharmaceuticals.
• On top of that, Singapore also venture into other areas
like Life Sciences, which involves the study of genetics
and development of new medical treatments using
gene therapy, new drugs and food products that have
been genetically modified. This would also involve
setting up supporting institutions.
• Other market sectors include being a regional hub for
services such as healthcare and education.

13. 1. Diversifying the economy
For example, organizations such as Agency for
Science, Technology and Research (A*STAR) was
set up to build up Singapore’s research and
development (R&D) capability. Many research
institutes have been set up by A*STAR to
undertake research in different areas.

18. 1. Diversifying the economy
Diversifying the economy helps to generate jobs
for Singaporeans, it also helps to reduce
Singapore’s dependence on a single industry or
market. This means that even if one sector of
the economy slows down, other sectors can help
Singapore’s
economy.

19. 2. Nurturing growth of Small and
Medium Enterprises (SMEs)
SMEs make up a large percentage of businesses
in the Singapore economy. They provide jobs
and support the operations of TNCs by
supplying them with components in the
manufacturing process.

20. • For example, Spring Singapore is being set
up to help the development of SMEs in
Singapore.
• In Spring Singapore, they offer
financial aids to new
companies that are being set up
so that they will be able survive
for the first five years. They also
offer help to existing companies
in forms of capabilities
development or branding
assistance.
2. Nurturing growth of Small and
Medium Enterprises (SMEs)

22. Another example would be tax exemption for
new companies on their first $100 000 income
for up to three years. These are different ways in
which the government supports SMEs to grow.
2. Nurturing growth of Small and
Medium Enterprises (SMEs)

23. With strong government support, it
creates a competitive environment to help
nurture the growth of SMEs in Singapore,
without hindering any foreign investment
opportunities. With the growth of SMEs,
Singapore will continue to attract
investments as a regional manufacturing
and service hub and sustain its economy.
2. Nurturing growth of Small and
Medium Enterprises (SMEs)

24. 3. Venturing abroad
Due to limited land and labour resource, Singapore
has to look beyond its national boundary to achieve
further growth.
There are two ways in which Singapore ventures
abroad – regionalisation and investing in new
markets.
By regionalisation, Singapore can invest in nearby
countries that have abundant land, lower labour costs
and new markets. Singapore companies provides the
investments while host countries provide land and
labour for Singapore companies. This would benefit
both Singapore and its partners economically.

25. 3. Venturing abroad
For example, Singapore cooperated between Singapore
and India to set up an International Tech Park in
Bangalore, India. It was a joint venture between
Singapore and Indian businesses where Singapore
companies invested while India provided skilled IT
professionals.

26. Singapore High Commissioner
in International Tech Park

27. Thus, in this case, host countries were able
to benefit economically and Singapore
was able to sustain its economy through
internationalization. This will further help
Singapore sustain its economy.
3. Venturing abroad

28. 4. Expanding market reach
through economic cooperation
Due to Singapore’s small domestic market, there is
a need to establish trade ties with countries around
the world to enable local companies to sell their
goods to a larger market.
One way to expand the market reach is for the
government to sign Free Trade Agreement (FTA)
with other countries. FTA will help to bring
countries about a closer economic collaboration.

30. For example, Singapore has FTA with the ASEAN
countries, New Zealand and even Japan.
4. Expanding market reach
through economic cooperation

31. Singapore has also cooperated with other countries in
the setting up of Special Economic Zones (SEZs) such as
Bintan, Batam and Karimun in Indonesia. This functions
as zones of rapid economic growth by using tax and
business incentives to attract foreign investment.
4. Expanding market reach
through economic cooperation

34. Through FTAs and SEZs, Singapore is able
to reach out to greater market and obtain
economic cooperation with the neighbouring
countries. This helps to generate more
revenue which will allow Singapore’s
economy to grow.
4. Expanding market reach
through economic cooperation

35. 5. Managing resources efficiently
• Developing people
– Promoting local entrepreneurship and
technopreneurship
– Promoting continuous learning among the workforce
• Attracting foreign talent
• Managing the environment
– Managing limited land resources
– Cooperation with regional and international
organisation
– Public education

36. 5. Managing resources efficiently
• Singapore is a small country and it is important that
the resources available are well managed and used.
By managing resources, Singapore can maximise its
opportunities in a globalised world.

37. 5. Managing resources efficiently
Workforce
The only resource Singapore has is people and it
is important that the workforce is skilled and there
are enough skilled labourers to meet the demand
of the growing economy. Promoting local
entrepreneurship or developing the local
workforce through training are ways that can
increase Singapore’s workforce.

38. Example for Workforce
• For example, Singapore promotes entrepreneurship
by amending bankruptcy laws to allow entrepreneurs
who have failed to start a business again.
• Singapore has also set up Singapore Workforce
Development Agency (WDA) to equip people with
better skills to tackle the globalising economy,
thereby promoting continuous learning.
• Singapore also has embarked on SkillsFuture, which
encourages Singaporeans to pick up new skills as part
of lifelong learning.
5. Managing resources efficiently

40. Attracting Foreign Talent
• As Singapore is experiencing a declining birth
rate and it requires new skills in a knowledge-
based economy, there is a need to attract
foreign talent to meet its manpower needs.
• Foreign talent has the advantage of bringing
along overseas business contacts. Thus
drawing foreign talent will help create more
business opportunities and jobs in Singapore.
5. Managing resources efficiently

42. Example of Attracting Foreign Talent
• For example, Singapore has been increasing
the number of citizenship granted for
foreigners interested to stay in Singapore due
to economic benefits.
• In 2001, there was 6500 people granted
citizenship. However, in 2005, the number
nearly doubled to 12900 people.
• This is done through attractive
education and housing packages
for foreign talents.
5. Managing resources efficiently

44. Managing the environment
• The land area of Singapore is only about 680
square kilometer and it is important that there is
proper planning for land use. Land planning is a
challenge as not all the land can be developed.
• Singapore also needs to take care of its
environment so that future generations can
continue to enjoy the clean and green
environment enjoyed by the present generation.
5. Managing resources efficiently

55. Example of Managing the environment
• For example, water catchment areas already take
up 40% of the land area. Height restrictions
imposed by airports on buildings limit how high
some of the buildings can be.
• The government needs to think about the long
term benefits for decisions regarding the use of
land.
• There are also public campaigns and education
to spread awareness among Singaporeans to
take care of the environment.
5. Managing resources efficiently

56. • With the correct management of people and
resources, Singapore can become more
productive and efficient, thereby ensuring a
sustainable development and progress for
Singapore.
5. Managing resources efficiently

58. In Short…
• Diversifying the economy
• Nurturing growth of Small and Medium Enterprises
(SME)
• Venturing abroad
• Expanding market reach through economic
cooperation
• Managing resources efficiently
– Developing people
– Attracting foreign talent
– Managing the environment

59. • Explain how economic cooperation with other
countries is an effective way for Singapore to
manage challenges in a globalising world. [5]
• Explain two other strategies used by Singapore to
manage challenges in a globalising world. [10]

60. • Explain how the promotion of continuous
learning among the workforce contributes to
the efficient management of resources.
• Explain two other strategies that contributes
to the efficient management of resources.

61. • Explain how careful land planning helps
Singapore to manage the environment. [5]
• Explain two other ways that Singapore
manages the environment. [10]