Ethos Issue 6, Jul 2009
Staying Ahead of the Game
Bernard Nee and Julia Yap
Singapore’s growth and
transformation from a
developing nation in the early
1960s to the successful and thriving
economy it is today has been the source
of much fascination for many observers.
Ours is a story that appears to defy
conventional economic theory; it has
attracted criticism from some quarters,
particularly for being too “firmly state-directed”.
Part of this is due to an
overemphasis by some on specific details
of Singapore’s economic development,
without understanding the thinking that
underlies our approach.
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“We (the EDB) talk to
companies, listen carefully to
them, what they are thinking,
and what they think are possible
markets and new businesses.” |
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A closer examination of
Singapore’s economic development
strategy demonstrates that the role
played by the Government in anticipating
new and emerging opportunities is
not incongruent with market forces.
Indeed, both elements have been and
will continue to be key to Singapore’s
continued long-run growth.
SINGAPORE’S APPROACH
TO INDUSTRY DEVELOPMENT
Most governments identify industry
sectors to focus on. Where they differ
is how these areas are chosen and what
actions are taken to support their growth.
In practice, the Singapore Government’s
approach can be described as a threestep
process: Listen, Test, and Act.
LISTEN (TO THE MARKET)
Market players (i.e., private sector
companies) determine the success or
failure of a business idea. Recognising
this reality, Singapore Government
agencies are in constant contact with
businesses, listening closely to their
perspectives and requirements.
Through the process of investment
promotion for example, the Singapore
Economic Development Board (EDB)
continuously gathers feedback from
existing and potential investors in Singapore. Ongoing dialogues with
industry leaders, international advisors
and futurists ensure that the EDB keeps
abreast of industry, technology and
demographic trends.
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”We have been talking to young
people here (in Singapore) on
their hopes and aspirations,
what they are interested in,
and what can they do well in.
We are here to create real
jobs for real people.” |
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To identify new growth opportunities,
the EDB also attunes itself to the career
aspirations of Singaporeans by engaging
with tertiary level students, potential
entrants to the job market, and those
already in the workforce. For instance,
the interest of young Singaporeans was
an important motivation for Singapore’s
push into “green” industries and clean
technology. With globalisation and
increasing mobility, notwithstanding
the financial crisis, Singapore will lose
our top talent if we do not ensure that
there are good jobs in growth sectors
that excite Singaporeans.
As a knowledge-based economy, the
need to listen and match the aspirations
of Singapore-based talent with the needs
of businesses is also important because
companies establishing operations in
Singapore do so expecting to fill most of
their positions with people already living
here. It would not make economic sense
for companies to set up in Singapore if
the bulk of their workforce had to be
sourced from abroad.
Through processes such as the
Economic Review Committee (from
2001 to 2003) and the Economic
Strategies Committee, the Government
engages a wide range of stakeholders
as well as the general public in a
national conversation about the growth
directions that Singapore should adopt.
These interactions help to ensure that
Singapore’s growth strategies and
policies do not lose sight of the two
fundamental objectives of Singapore’s
economic development: sustained long
term growth, and good jobs for our people.
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