SINGAPORE

Past Perfect, Future Tense?

Abhishek Varadarajan Bhaskar Nagarajan Dinesh Sathiaraj Kalyana Krishnan Rahul Ganesh Sankaranarayanan Balachandran Udaykumar Sengunthar

Agenda
Introduction
Birth of Independent Singapore The Rise of Singapore From 1980s through 1990s A Knowledge Economy for future growth

Introduction
Symbol of Asias Economic Emergence

Rise as a regional hub : Early 19th century to 1960

Value Added Production : 1970s 1980s

Hub of Service Industries : 1990s

Political and Global Challenges

Birth of Independent Singapore

Pu-luo-chung Singapura Singapore

Advent of British East India Company

Growth of regional Entrepot

World War II and Independence

The Early Years

Scarcity

Unemployment Social Unrest

No Capital or Technology

Losing Dominance in Shipping

PROBLEM

SOLUTION

THE RISE
Export Oriented Industrialization Technology Intensive Businesses

Income Tax Relief

Promotion of Tourism

Intensive Govt Regulation

Free Port for Shipping

Communication Infrastructure

Air Traffic Hub

From Low cost to High Value

Need for paradigm shift
Scarcity of Labor coupled with high cost Potential peril to Core Competence

Economic remediation strategies

Factors of production; From Labor intensive to Capital intensive Outsource threats (i.e.) Labor intensive model Spur high technology adoption in production Promotion of Service industry

The Paradigm Shift

Technology focus areas Electronics & Telecom Specialty chemicals & Pharmaceuticals Optical & Photocopying equipments Financial services Governmental Support Investment in R&D, educational infrastructure Enhance lingual dexterity Foster corporate aids & training programs Collaboration with international SMEs & highly skilled workforce through immigration

Focus Areas in 1980s

Panchatantras The five some
Entrepot Trade Petroleum refining & Shipping Export oriented manufacturing Goods & Services for domestic use Banking, Finance, Telecom & Tourism

Economic Rationale
Concept of Scarcity Specialization Demand & value conservation using IPRs as vehicles

The 1985 Slowdown

International slump in Petroleum, Shipping & Electronics

Highly dependent economy upon global demand supply of goods

Free trade policy

The good news

The Early to Mid 1990s

Melting pot of cutting-edge technology Infrastructure growth The giant leap

Market expansion overseas

Attraction of Foreign Investments
Establishment of Industrial parks in Indonesia, Vietnam Hub & Spoke Model

SINGAPORE A KNOWLEDGE ECONOMY

Vulnerability to Battle crisis, suffer dips in external GDP growth & again bounce development back

Shift in focus to industries less dependent on trade

Aimed at becoming a more services and knowledge driven economy

Knowledge Driven Singapore

Achievement of core competence to differentiate and reduce vagaries
Emphasis on niche areas Bio-Tech, Nano-Tech, international education, tourism et. Al Business friendly tax structure to better attract companies in such emerging areas

Strengthen trade impacting GDP

Signing of FTAs with JAPAN, Oz, NZL, the US & INDIA

Future Growth Initiatives

Huge Investments in R &D

A centre for advanced biomedical discoveries & innovations. Areas include health care biotech and medical tech. Attract companies working on R&D & high caliber research talents Aggressive Marketing Biopolis of Asia 500 acre science park as part of BMS initiative

Alternative Energy for Future Growth

National Environment Agency setup to encourage R&D and to formulate policies Investment into R&D of solar cells and biofuels Financial support for development of new clean energy technologies & for implementation of pilot projects Measures to make the state a hub for nano & environ technologies NUSNNI setup in 2002 & IESE in 2005 for value added commercialization

MEDICAL & EDUCATIONAL SERVICES

Tap growing demand for medical & healthcare services and become a regional hub Launch of Singapore Medicine Educational Services for GDP Tap international education market and attract more foreign students, Middle class hopefuls and business executives willing to hone their skills Diversified range of courses, projected the state better & offered an insight into opportunities for employment & business Culminated with the launch of Singapore Education

FUTURE GROWTH INITIATIVES

Hub for Islamic Finance, Wealth Management & Infrastructure Finance

Connected Singapore & Digital Exchange Strategy

Digital Cinema Exchange by IDA

Games Exchange & Singapore Games Bazaar

FUTURE GROWTH INITIATIVES

Complex BPOs & Business Continuity/Disaster Recovery (BC/DR) Standards

International Arbitration & Legal Services

Great Singapore Sale Increase in Tourist Arrival

Integrated Resorts & Spaceport Singapore

Challenges
Outbreak of SARS Excessive dependency on Foreign economy Rising Labor and Real Estate costs Increased competition for refining industry Competition from other regional hubs Constant revision of worker wages Death penalties Software piracy and other illegal activities Global terrorism threat

In Conclusion
Sue Generis Forefront Of Knowledge

Transformation

Fruitful Aristocracy

Financial & Business Hub

Questions