Download SEQ: Which of the following is the most important strategy in helping

SEQ: Which of the following is
the most important strategy in
helping Singapore to overcome
challenges brought about by
Globalisation?
(i) Diversifying the economy
(ii) Venturing abroad
(iii) Managing resources efficiently
Challenges brought about by
Globalisation. Bring this up in INTRO
• Intensive competition from other countries. E.g.
China + India
• Economic problems in other countries affecting
Singapore
• Increase mobility of people and companies
-lead to brain drain? Companies outsourcing to
other countries?
• Local access to foreign goods may reduce the
size of the local market for local producers.
Diversifying the economy
• Important strategy that ensures that the
Singapore economy is not over-reliant on a
particular area.
• Examples:
• Diversify manufacturing to include
technologically intensive, high value-added
activities such as chemical engineering and
pharmaceuticals. Venture into Life-Sciences,
build up on Research and Development.
A*STAR and IMCB. 2010: Bio-electronics
• Tourism
• Regional Hub for Education
• Financial + modern services hub
• Leading consumer business centre etc
Diversifying the economy
• Analysis? How does diversifying the economy
with the above examples help to overcome
challenges brought about by Globalisation (this
is also the link)
• By diversifying itself into different secondary and
tertiary sectors, this strategy ensures that
Singapore is not overly-reliant on any particular
area, such that the economy is still sustainable
even if one sector collapses, or if the work is
outsourced to other countries.
• By re-inventing herself, Singapore ensures that
she is always up-to-date and in tuned with global
trends, so as to leverage on the positive forces
of Globalisation, rather than be eliminated by
other competitors.
Venturing Abroad
• Due to Singapore’s limited land, labour
resources and market size, Singapore has to
look beyond its national boundary to achieve
further growth. This can be achieved through
regionalisation, through investing in nearby
countries that have abundant land, lower labour
costs and new markets. This is important as
Singapore companies are also competing with
foreign companies and it is restricted by the
small market size in Singapore.
• E.g. Singtel expanding into regional markets in
Thailand.
Venturing Abroad
• Moreover, Singapore needs to spread its
investment around the world to ensure that
Singapore’s economy is maintained even if one
region is weakened.
• -Investing in new markets such as Middle East,
Africa, Latin america and Central and Eastern
Europe.
• -Also investing in China: Suzhou Industrial park
1994
• -and in the International Tech Park in Bangalore
India.
Venturing Abroad
• Analysis: As globalisation has brought about the
movement of MNCs around the world,
Singaporean companies also have to venture
abroad to benefit from the ‘comparative
advantage’ that some countries, such as India and
China have in terms of providing low cost labour;
and to play a bigger role in the regional and
international market once the Singapore national
market becomes saturated, in order to yield
greater revenue for Singapore, which in turn will
give it the means to upgrade its infrastructure
such that it still remains appealing to overseas
investors. Venturing abroad to diverse regions
also ensures that Singapore is somewhat
cushioned from global recessions that tend to
affect Western developed countries more.
Managing resources efficiently
• Management of human resources is the most
important strategy in helping Singapore to
overcome challenges brought about by
Globalisation.
• Crucial for Singapore, as human resource is
Singapore’s only resource.
• Need to ensure that people have the right skills
and minds to thrive in a globalised world
• Also need to instill in Singaporeans a strong
sense that Singapore is home. To prevent brain
drain.
Managing resources efficiently
• Example: Government needs to be appreciative of talent
and come up with various methods to stretch and nurture
these talents. So as to prevent a brain drain from
occurring due to the perception that Singapore is unable
to nurture its talents. Provision of scholarships. +
attracting foreign talent.
• E.g. promoting entrepreneurship and technopreneurship
to develop talent. National productivity fund – provides
funds to support industry
• E.g. Promoting continous learning for PMETS and
workers. (Singapore Workforce Development Agency est
in 2003) Programmes like employability skills system
(ESS) to equip and upgrade skills of workers.
Managing resources efficiently
• Analysis:
• Extremely important that Singapore manages its
resources efficiently. Ensures that workforce is
up-to-date and competitive, so as to lessen the
chances of MNCs outsourcing to another
country due to superior workforce in the other
country.
• Needs to develop its own human resource rather
than be reliant on foreign talent which might be
more mobile in that they have no emotional ties
to Singapore.
• Therefore, need to ensure that Singaporeans
are not only well-trained and skilled, but also
have the commitment to Singapore, and have
the desire to see Singapore progress further.
Conclusion
• Managing resources efficiently is the underlying
and therefore most important factor. Without
skilled and a flexible workforce, Singapore would
not be able to diversify its economy as this
requires re-training of workers and constant upgrading of skills. Like-wise, it is not possible to
venture abroad if Singaporean companies do
not have the resources to not only manage the
national market, but also the capabilities to
manage the regional and international market.
This requires a talented workforce which is
comfortable in working in different cultural
environments, and have an open-mind towards
adapting to local conditions.