Globalization and Singapore's Economic Development

Fifty years ago, the city-state of Singapore was an undeveloped country with a GDP per capita of less than US $320. Today, it is one of the world's fastest growing economies. Its GDP per capita has risen to an incredible US $60,000, making it the sixth highest in the world based on Central Intelligence Agency figures. For a country that lacks territory and natural resources, Singapore's economic ascension is nothing short of remarkable. By embracing globalization, free market capitalism, education, and strict pragmatic policies, the country has been able to overcome their geographic disadvantages and become a leader in global commerce.

Upon independence, Singapore experienced many problems. Much of the city-state's three million people were unemployed. More than two-thirds of its population was living in slums and squatter settlements on the city's fringe. The territory was sandwiched between two large and unfriendly states in Malaysia and Indonesia. It lacked natural resources, sanitation, proper infrastructure, and adequate water supply. In order to stimulate development, Lee sought international assistance, but his pleas went unanswered, leaving Singapore to fend for itself.

Globalization in Singapore

During colonial times, Singapore's economy was centered on entrepôt trade. But this economic activity offered little prospect for job expansion in the post-colonial period. The withdrawal of the British further aggravated the unemployment situation.

The most feasible solution to Sinagpore's economic and unemployment woes was to embark on a comprehensive program of industrialization, with a focus on labor-intensive industries. Unfortunately, Singapore had no industrial tradition. The majority of its working population was in trade and services. Therefore, they had no expertise or easily adaptable traits in the area. Moreover, without a hinterland and neighbors who would trade with it, Singapore was forced to look for opportunities well beyond its borders to spearhead its industrial development.
Pressured to find work for their people, the leaders of Singapore began to experiment with globalization. Influenced by Israel's ability to leap over its Arab neighbors who boycotted them and trade with Europe and America, Lee and his colleagues knew they had to connect with the developed world and to convince their multinational corporations to manufacture in Singapore.
In order to attract investors, Singapore had to create an environment that was safe, corruption-free, low in taxation, and unimpeded by unions. To make this feasible, the citizens of the country had to suspend a large measure of their freedom in place of a more autocratic government. Anyone caught conducting narcotic trade or intensive corruption would be met with the death penalty. Lee's People Action Party (PAP) repressed all independent labor unions and consolidated what remained into a single umbrella group called the National Trade Union Congress (NTUC), which it directly controlled. Individuals who threatened national, political, or corporate unity were quickly jailed without much due process. The country's draconian, but business-friendly laws became very appealing to international investors. In contrast to their neighbors, where political and economic climates were unpredictable, Singapore on the other hand, was very predictable and stable. Moreover, with its advantageous relative location and established port system, Singapore was an ideal place to manufacture out of.
By 1972, just seven years since independence, one-quarter of Singapore's manufacturing firms were either foreign-owned or joint-venture companies, and both the U.S. and Japan were major investors. As a result of Singapore's steady climate, favorable investment conditions and the rapid expansion of the world economy from 1965 to 1972, the country's Gross Domestic Product (GDP) experienced annual double-digit growth.
As foreign investment poured in, Singapore began focusing on developing its human resources, in addition to its infrastructure. The country set up many technical schools and paid international corporations to train their unskilled workers in information technology, petrochemicals, and electronics. For those who could not get industrial jobs, the government enrolled them in labor intensive un-tradable services, such as tourism and transportation. The strategy of having multinationals educate their workforce paid great dividends for the country. In the 1970s, Singapore was primarily exporting textiles, garments, and basic electronics. By the 1990s, they were engaging in wafer fabrication, logistics, biotech research, pharmaceuticals, integrated circuit design, and aerospace engineering.

Singapore Today

Today, Singapore is an ultra industrialized society and entrepôt trade continues to play a central role in its economy. The Port of Singapore is now the world's busiest transshipment port, surpassing Hong Kong and Rotterdam. In terms of total cargo tonnage handled, it has become the world's second busiest, behind only the Port of Shanghai.

Singapore's tourism industry is also thriving, attracting over 10 million visitors annually. The city-state now has a zoo, night safari, and a nature reserve. The country recently opened two of the world's most expensive integrated casino resorts in the Marina Bay Sands and the Resorts World Sentosa. The country's medical tourism and culinary tourism industries have also become quite marketable, thanks to its mosaic of cultural heritage and advance medical technology.
Banking has grown significantly in recent years and many assets formerly held in Switzerland have been moved to Singapore due to new taxes imposed by the Swiss. The biotech industry is burgeoning, with drug makers such as GlaxoSmithKline, Pflizer, and Merck & Co. all establishing plants here, and oil refining continues to play a huge role in the economy.
Despite its small size, Singapore is now the fifteenth largest trading partner of the United States. The country has established strong trade agreements with several countries in South America, Europe, and Asia, as well. There are currently over 3,000 multinational corporations operating in the country, accounting for more than two-thirds of its manufacturing output and direct export sales.
With a total land area of just 433 square miles and a small labor force of 3 million people, Singapore is able to produce a GDP that exceeds $300 billion dollars annually, higher than three-quarters of the world. Life expectancy is at an average of 83.75 years, making it the third highest globally. The corruption minimal and so is the crime. It is considered to be one of the best places to live on earth, if you don't mind the strict rules.
Singapore's economic model of sacrificing freedom for business is highly controversial and heavily debated. But regardless of philosophy, its effectiveness is certainly undeniable.

http://geography.about.com/od/economic-geography/a/Singapore-Economic-Development.htm

S'pore to build up its foreign reserves shield

Section: Front Page
By: TEH SHI NING
Publication: The Business Times 22/09/2012
Page: 1,6
No. of words: 965

As global risks grow, PM says reserves will make safety nets stronger; S'poreans will be given skills to face competition

tshining@sph.com.sg

Singapore

SINGAPORE has to build up its foreign reserves to strengthen social safety nets, as part of its response to the risks and challenges of the future, Prime Minister Lee Hsien Loong said last night.

In his keynote address to 350 senior guests of the Economic Development Board, Monetary Authority of Singapore, Government of Singapore Investment Corporation and Temasek Holdings at the first Singapore Summit's welcome dinner, Mr Lee laid out how he sees Singapore responding to threats and possibilities facing Asia and the world.

"We have to build up our foreign reserves to strengthen our social safety nets, and to cope with volatility and uncertainty. People sometimes ask us, 'Why do you need to have a sovereign wealth fund? The world is safe and you can float your currency.' But we tell them, there are things which you cannot calculate and your models may not predict all the events which can go wrong," he said.

Apart from building its reserves, Singapore is also strengthening itself against globalisation's risks in other ways, such as equipping people with the skills and mindset to face inevitable competition.

"We have to know that it's impossible for us to shield ourselves completely from the competition. There is no place to hide.

However high your seawall, however strong your barrier, the pressure is there. And it will seep through, and we must be ready to meet it," Mr Lee said.

As a small country, Singapore will have to adapt and "take the world as it is".

"We cannot imagine ourselves changing the world," he said.

But it does have the advantage of being closely linked to key Asian markets – China, India and Asean – and enjoying the presence of many multinational companies already in Singapore.

"Our survival depends on our living the Global-Asia story – connecting Asia to the world and vice versa," Mr Lee said, explaining how Singapore must harness the "Global-Asia Confluence" – the summit's theme – to be a springboard for companies venturing into and out of Asia.

Singapore will also need to continue promoting economic integration and free trade "through many ways, because there is no single path forward, and because doing it on a multilateral basis through the World Trade Organization and the Doha Round has become too difficult", Mr Lee said.

As technology transforms the world, with IT and robotics revolutionising entire industries, Singapore must also master technology. "Whether it's broadband on fibre, whether it's intelligently managing our city traffic, whether it's being more efficient with a smart grid in our energy utilisation – if technology is applicable, we should be able to use it to the max," he said.

But the impact of technology on societies must be managed carefully. Already, technology has hit income distributions, with a huge premium on talent and huge pressure on unskilled and routine jobs. So Singapore needs to educate its people to use technology to thrive in the new economy and not be sidelined, he said.

Societies worldwide will undergo major change as social media continues to alter the way people interact with one another and with their governments.

"The Internet helps societies organise more effectively, for example through e-government, but it also makes it harder for societies to take a longer view, because governing becomes a 24-7 referendum," Mr Lee said.

This will be a challenge for all societies – "whether it's America, with its free and open roots, whether it's China, trying its best to keep social order and a lid on discontent, or whether it's Singapore, finding its way forward as a very small player in a very uncertain world".

Singapore is especially affected, being small, open, and fully wired up. So while there is a need to exploit fully the Internet and social media, Singapore will also need to institute safeguards against misuse and strengthen the community's cohesion and identity. This is necessary for Singapore to be able to "hold its own in a very porous and rapidly changing world", Mr Lee said.

While preparing to ride these global waves of change, Singapore also needs to prepare for critical risks: the long and painful resolution of the United States and Europe's deep-seated economic troubles, rising nationalism due to the euro's woes in Europe and in Asia because pride in economic success has rekindled old territorial disputes, as well as the shifting strategic balance of power as China becomes stronger.

"We need an economy which is resilient, able to cope with a protracted global downturn. We need a strong armed forces and a Home Team of security and police to protect ourselves against security threats and dangers. We need to build social cohesion to strengthen our sense of togetherness," Mr Lee said.

On balance, he believes it is likely that these risks will be contained and that Singapore faces a "challenging, but bright future".

The three-day summit, chaired by former foreign minister George Yeo, is organised by the Global-Asia Programme Office. Participants include World Trade Organization director-general Pascal Lamy, Standard Chartered group chief executive Peter Sands, former World Bank president Robert Zoellick and other business leaders and thinkers serving as international advisers to the EDB, MAS, GIC and Temasek.


The Global-Asia Programme Office, an inter-agency initiative led by the EDB and MAS in collaboration with the Ministry of Trade and Industry, Ministry of Finance, GIC and Temasek, intends to host the Singapore Summit annually.

A rich, diverse heritage shaped by interactions

Section: Saturday Insight
By: ANDREA ONG
Publication: The Straits Times 09/02/2013
Page: C4
No. of words: 1395

On the eve of Chinese New Year, Senior Parliamentary Secretary Sim Ann shares with Andrea Ong what it means to be a Chinese Singaporean today. She heads the Bicultural Taskforce, a group of People's Action Party MPs exploring new ways for the Government to engage the Chinese community more effectively


CHATROOM SIM ANN

What do you think it means to be Chinese Singaporean in this day and age?

There definitely is a Chinese Singaporean identity. It's not so easy to define, but the way I see it, it's a rich and diverse heritage shaped predominantly by pre-Independence immigration patterns.

For most of the Chinese Singaporeans here, our forefathers were from the southern provinces. Our origins influence the way we speak, the things we eat and also our outlook. Most of our forefathers had very humble beginnings in Singapore. That imparts a certain flavour to our identity – very down to earth, very practical. We look at the world with the eyes of working men and women.

There are also other interesting elements. Those who arrived in Singapore the earliest had to change a lot to adapt. So you also have groups within the Chinese community whose forefathers adapted very well to colonial society and underwent English education, such that these families were very close to the Western mould in their outlooks and practices. Then you also have another group, the Straits Chinese, with their own unique heritage.

It's hard to pin down what it means to be Chinese in Singapore. But I see it as a rich tapestry of experiences and complex human interactions which reflects the fact that Singapore was and still is a crossroads for East and West.



How have Chinese Singaporean culture and traditions evolved over the years?

We've preserved quite a fair bit of customs and traditions. I think many people have this experience. They don't realise just how traditional they themselves or their family members are until they get married. That's when it all hits you, my goodness, you have to prepare all these gifts and auspicious items. Family members who may never have professed any interest in traditional culture may suddenly insist that you must look at the almanac for wedding dates.

So I would say that some of these elements run quite deep in our DNA and they will surface at various milestones in our lives.



Has there been an erosion in Chinese Singaporean identity?

There is definitely growth and change. I think it is constantly evolving. But whether there is erosion depends on your perspective. I notice that quite a number of young people are quite interested in issues regarding personal and group identity. As long as there is that interest, I can't really see that people will lose touch with their roots.



What would you say to the Chinese-educated members of the older generation who may be concerned that traditional Chinese values and language are fading?

This is a group of community stakeholders whom I respect very much. I understand where they are coming from. It is a noble aspiration to see a society where many are able to achieve a strong grasp of their mother tongue. Let's keep at it and work at it, but at the same time recognise and celebrate the diversity within the Singapore Chinese community.

The language environment has also become more complex. I have been noticing a number of what I call latent Chinese speakers. I think over time we will see more of them. These are students who went through 10 years of Chinese lessons in our schools. They may feel they didn't learn very much or resisted learning, but as chance brings them into contact with Chinese-speaking environments, like if they are posted to work in China, they find it's not that difficult to pick it up again and plug into the environment.



How has the Chinese Singaporean identity been affected by globalisation and Westernisation?

This is actually where the larger Singapore identity becomes important. Our dedication to honesty, hard work, thrift, teamwork, multiracial harmony – these are all very important values that define not just Chinese Singaporeans but also Singaporeans as a whole.

Singaporeans exposed to forces of globalisation also realise that it's not about becoming like someone else. We have to retain our own uniqueness and distinctiveness in order to stand out.



Why do some Singaporeans still feel a sense of unease towards the mainland Chinese?There are clear differences in terms of habits between local-borns and newcomers. My own sense is that where our people most feel a sense of difference is, say, the volume at which people speak and hearing unfamiliar accents. It also matters how quickly the newcomers pick up local habits like queueing at a respectable distance behind someone at the ATM for instance.

Because these are visible differences, they can sometimes also be the quickest to cause misunderstanding and offence.



What can be done to bridge the gap between the local and mainland Chinese?

The pace of bringing in newcomers cannot be faster than society's ability to digest the change. Communication and interaction are also key. I encourage Singaporeans to speak up if you feel that someone is invading your space or if you feel that someone is doing something, which if he or she changed it, would make both of you a lot more comfortable.

For the newcomers, they really need to understand us. Some of them come thinking that all Chinese Singaporeans speak Mandarin. Clearly that's not the case, and that's something many of them grapple with only when they arrive. Having an open mind and being prepared to adjust expectations are very important.



Have Chinese Singaporeans been doing enough to integrate with the other races?

I think Singaporeans have been very forthcoming and friendly on the whole. What always remains important in Singapore is to maintain the common space and not let it shrink. As long as there is enough common space in schools, in the workplace, in the community, in national service, then the dynamics will work themselves out over time.



Does religion have an impact on Chinese Singaporean identity?

I see cultural and religious identities as overlapping, so I would hesitate to say that any changes in religious affiliation would have a very clear impact on cultural identity.

I've been to many Taoist festivals celebrating deities' birthdays. I find them all fascinating because every deity has a different story and the kind of human bonds that keep a temple going are very interesting facets of society.

But if I were to interact with Chinese churchgoers, I also find that many of them have their own sense of identity. Some churches have very well-developed Chinese services and they go to great lengths to translate and even compose original hymns in Chinese.



How do you celebrate Chinese New Year and has it changed?

The way I celebrate Chinese New Year has pretty much remained the same. My family has distilled it to the two really important customs, the reunion dinner and the visiting. For the dinner, my mother, who is the chief cook of the family, will usually outdo herself. As part of her Chinese Singaporean identity, she is a very eclectic cook, so on her table you would find assam fish head curry next to char kway teow and sometimes prata. That's also part of the Singaporeanness that I enjoy, having a rojak dinner table.

More green spaces can reduce environmental impact of urban growth

Bold: benefits of green spaces

SINGAPORE: The recently released Draft Master Plan by the Urban Redevelopment Authority (URA) has promised more green spaces around planned new neighbourhoods, and experts say this could help reduce the environmental impact of urban growth significantly.

But they also emphasise that environmental sustainability will require more than just the building of facilities and hardware.

Some of the green features surrounding new residential and industrial developments that are laid out in the Master Plan include new bio-retention ponds to remove pollutants from storm water run-off, harnessing wind to naturally cool new buildings, and parks to bring recreational spaces closer to home.

Experts say these features can help reduce what is known as the urban heat island effect.

The effect occurs when the temperature in highly built-up developments is higher than rural areas, and can affect local wind and weather patterns.

They say that green spaces will also create more liveable surroundings.

Colin Tan, director and head (research and consultancy) at Suntec Real Estate Consultants, said: "In a densely-populated environment, we do feel the effects of overcrowding.

"And I think some of these green elements help to reduce some of these overcrowding feelings, and may be good for mental health."

“This overcrowding sometimes manifests itself in the "not-my-backyard" syndrome. You have people complaining about eldercare, hospice located next to you. Sometimes, it is not that people are heartless. But they feel that it is overcrowding --buildings more tightly packed together, feeling of claustrophobia."

The Master Plan focuses on environmental sustainability, and experts say this could be beyond just green features such as bio-retention ponds.

It could also be in the construction process, such as using recycled concrete from demolished buildings and using materials that have a low carbon footprint.

Dr Kua Harn Wei, Assistant Professor at the National University of Singapore's School of Design & Environment said: "We do need to see how we can green the entire process of building, rather than just focusing on the green features of the by-product."

But he said that environmental sustainability also needs buy-in from society, to integrate the "software" into the "hardware".

Dr Kua said: "Sustainability is not just about infrastructure, it's not waiting for the government or authorities to build things for us. It's about how we make use of these facilities in a responsible manner.

“So the onus is also on us, as the users and consumers, on how to make this whole Master Plan a success."

Dr Kua said this means residents must act responsibly to ensure everyone benefits from the new facilities and spaces.  

http://www.channelnewsasia.com/news/singapore/more-green-spaces-can/895046.html

S'pore to retain green spaces as city grows

PM says conservation and development can go together; fifth and longest nature way soon

ROBIN CHAN
POLITICAL CORRESPONDENT
AUDREY TAN

Prime Minister Lee Hsien Loong yesterday gave his pledge to keep green places in Singapore even as the city continues to be developed, insisting that conservation and development can go together.

He made this commitment at the opening of the Singapore Botanic Gardens Heritage Museum, where he shared personal memories that showed his affection for nature and the Gardens, and also highlighted the Government's vision to have more park land and new green routes connecting communities and places all across Singapore.

"We may not be able to have such large parks like the Istana all over Singapore, and also we can't afford to preserve every single green patch on this little island," he said, referring to the grounds of the Istana where his office is, and which is home to a variety of trees, shrubs and wildlife.

"But we are determined that we will leave green lungs and natural spaces all over the city as we build our city. We can do that and we will do that. Then our people can always be in touch with nature, never far from green spaces and blue waters."

In line with the commitment to greening, Singapore will get its fifth and longest "nature way" early next year, he said.

Tengah Nature Way will be a route planted with specific trees and shrubs to help the movement of birds, butterflies and small animals, and it will connect the Bukit Timah and Central Catchment Nature Reserves, in the centre of Singapore, with the Safti Live Firing Area out west.

The 12.8km route will be longer than the other four existing ones at Admiralty, Kheam Hock, Tampines and Yishun, which are all part of plans to have 60km of such nature ways by 2015.

While not yet finalised, the route will run along the Bukit Batok estate including Old Jurong Road and Bukit Batok West Avenues 2, 3 and 5.

The public will get a chance to plant trees on the new nature way starting from early next year.

PM Lee noted that Singapore's greening efforts have been going on for 50 years, since the first Tree Planting Day in 1963, which was followed by integrating parks and green spaces into the housing estates and developing a sustainable Singapore blueprint.

And as it moves on to its next phase to become a "city in a garden", Singapore will have 900 more hectares of park land across the country, or two times the size of Toa Payoh town, he said.

"We will be connecting our communities and places where we live through parks, garden, streetscapes and skyrise greenery. So green streets, green lungs, green buildings," he said.

These parks will not be passive green areas, but will be focal points for the community, hosting cultural performances, nature tours and other activities.

Singapore's rapid development as a city-state has often raised concerns about the preservation of nature, and participants from varied backgrounds lamented what they believed to be the prioritisation of economic over environmental issues at a separate Our Singapore Conversation event on greenspaces yesterday.

The theme of conservation and development being able to go hand in hand was therefore a key message that emerged from the four-hour discussion organised by the Nature Society (Singapore) and Young NTUC.

One group suggested that development could take place in already built-up areas in the south, so that existing green areas located further up north, such as Bidadari, could be retained for their biodiversity.

Said Ms Dorothy Ng, 33, who works in communications: "I think that conservation and development need not be contradictory."


COMMENTS
> Green spaces are natural areas in the country for example the parks and gardens like the Singapore Botanical Garden and Gardens by The Bay for aesthetic and recreational purposes.

> "But we are determined that we will leave green lungs and natural spaces all over the city as we build our city. We can do that and we will do that. Then our people can always be in touch with nature, never far from green spaces and blue waters." 

> Due to our growing population, most green spaces have been compromised to build more housings for the population. Thus, the government is trying to put in effort to retain as many green spaces as they can.

> It is necessary because it balances out our urban environment and enhances the social, recreational, environmental, physical and mental health, educational and economic well being of our community.


Hui Yi :-----)

URA's green ideas get experts' approval

URA's green ideas get experts' approval

Section:	Home
By:	FENG ZENGKUN, AUDREY TAN
Publication:	The Straits Times 23/11/2013
Page:	B24
No. of words:	517

They back nature expansion, stress execution must be well managed

By FENG ZENGKUN

ENVIRONMENT CORRESPONDENT

and AUDREY TAN

PLANS to expand green spaces in Singapore and link them up have won the support of nature activists and experts here. They called for more such links but said the execution will have to be carefully managed.

More green spaces and corridors can lower the island's temperature, foster greater appreciation of nature and help to retain rainwater and reduce flash floods, they said.

But if mismanaged, the links can boost the population of unwanted animals such as wild boars, lead them to more habitats and increase the risk of human-animal conflicts.

The experts were interviewed by The Straits Times on the new Urban Redevelopment Authority blueprint that includes plans to expand green spaces such as nature areas and parks, and new, natural pathways to link them.

This Draft Master Plan 2013 guides land use in the next 10 to 15 years with revisions every five years.

Under the master plan, the National Parks Board will introduce more than 60km of "nature ways" by 2015.

These are routes planted with specific trees and shrubs to help the movement of birds, butterflies and small animals between two green spaces.

In the longer term, a larger eco-corridor will be built through the future Tengah town to let wildlife pass between the Western Water Catchment and the Bukit Timah and Central Catchment Nature Reserves.

The chairman of Seletar Country Club Nature Group, Mr Foo Jit Leang, said linking green spacescreates a larger foraging area for animals such as monkeys, and they may be less likely to venture into residential areas in search of food.

Other experts said the expanded habitats keep the fauna healthy.

Animals trapped in small, fragmented spaces may breed within their families, leading to genetic defects in their offspring. The drop in genetic diversity also makes them more vulnerable to disease and habitat changes.

The green spaces also cool the city since man-made building materials absorb and radiate more heat than natural surfaces, said Associate Professor Tan Puay Yok from the National University of Singapore's department of architecture.

But Nature Society council member Tony O'Dempsey said ecological studies are needed to determine each link's "customers" as well as optimum size.

"The risk is that feral species will use the links to get into the nature reserves and damage the habitats, so we need to know what species are in the terminal locations as well as along the way. Some wildlife management may be needed," he added.

The vegetation along the links should also match those of the connected areas to sustain the animals and critters throughout, said Nanyang Technological University's environment club, Earthlink.

"Some examples would be fruit trees that provide food for birds, squirrels and other small mammals. Climbers and lianas that link up one tree to another can also provide an 'aerial highway' for tree-dwelling animals."

New Housing and Development Board estates and private condominiums may soon be required to set aside a stipulated amount of space for greenery.

• PHOTOS

File photo: Blocks of HDB flats in a neighbourhood.

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SINGAPORE: New Housing and Development Board estates and private condominiums may soon be required to set aside a stipulated amount of green space.

Speaking at a conference on Thursday, Minister of State for National Development Desmond Lee said the ministry will be exploring the possibility of introducing a minimum requirement.

This is one way to ensure that pervasive greenery continues to exist in Singapore.

Mr Lee said that where new developments displace existing greenery, they should fully or partially replace the lost greenery by other means.

This can take the form of landscaping, rooftop gardens, or vertical greenery like green walls.

Mr Lee also added that the ministry will study how to add more greenery to public infrastructure such as sheltered walkways and bus shelters.

Some industry players told Channel NewsAsia this will bring about higher quality living spaces for residents, but not necessarily at much higher costs.

Frven Lim, deputy MD of building consultancy services at Surbana International Consultants, said: "By stipulating certain base requirements, it means that the base standard of all designs henceforth would be of a higher standard.

"By providing green spaces, it just means that the built-up areas are translated into another form. It's not necessarily going to bring up the costs. It might, but probably not in a significant way."