Ethos Issue 6, Jul 2009

Staying Ahead of the Game
Bernard Nee and Julia Yap

Nevertheless, there is a perception that local companies have been disadvantaged by the strong presence of foreign multinational corporations (MNCs) in Singapore. The reality is that local companies have benefited tremendously from this growth. For instance, the supplier base for MNC operations in Singapore has become increasingly local. Many home-grown companies such as MMI, Sunningdale and Venture, have successfully partnered MNCs, both locally and in their regional expansion.

Singapore’s aerospace sector is another example where strong links between local firms and foreign MNCs have led to the growth of a highly competitive industry. Our local companies, SIA Engineering and ST Aerospace, are amongst the world leaders in airframe maintenance and modification. They have multiple partnerships with Pratt and Whitney, Rolls Royce and other major manufacturers, spanning engine overhaul, nacelle, landing gear, hydraulics and component repair. These, together with the presence of other complementary global manufacturers and local small and medium enterprises, have resulted in a comprehensive aerospace cluster that is at the global forefront of aerospace maintenance, repair and overhaul.

Naturally, Singapore is proud when local firms grow to become internationally recognised brands. In recent years, an increasing number of local entrepreneurs have also spawned promising business start-ups, many of which have become industry leaders. An example is Hyflux, with its expanding footprint in Singapore, China, Middle East, North Africa and India. Together with SPRING and International Enterprise Singapore, the Singapore Government hopes to nurture more of such home-grown businesses going forward.

PREPARING FOR THE FUTURE
Singapore’s choices for industry development have not been decisions made on the spur of the moment. For example, the development of the biotech industry dates back to the 1980s when EDB started studying the industry and recognised that we needed to build up our capabilities—this resulted in the founding of the Institute of Molecular and Cell Biology in 1987. At the same time, by the late 1990s, Singapore had become a key node in the global manufacturing network of leading pharmaceutical companies such as GSK, Sanofi-Aventis, Schering-Plough, Merck, Wyeth and Pfizer. With the completion of the Human Genome Project and the capabilities that we had built up, the timing was opportune in 2000 for Singapore to mount a bigger push to promote the Biomedical Sciences sector.

The Singapore Government will continue to Listen—to market participants, futurists, and Singaporeans, Test—ideas with the market, and Act—on opportunities. In today’s fast-evolving economic landscape, no one can predict the next big idea with certainty, but through Listen, Test and Act, Singapore stands prepared for emerging opportunities and will be in a position to capitalise on them.

Bernard Nee is Executive Director of the Strategic Planning Group at Singapore’s Economic Development Board. Julia Yap is Assistant Head in the Strategic Planning Group.

Page 1 I 2 I 3