Singapore′s globalization strategy

Abstract

For singapore, it is not a question of whether to globalize, but how to globalize. While Singapore may be handicapped by its small size and lack of natural resources, it seems that these drawbacks could be less of a problem as the world economy becomes more sophisticated. Physical size and natural resources will become less important for economic growth when compared with human capital, information, and knowledge in the future. To build the city-state, the Singaporean government adopted a number of bold strategies to develop its economy, making it a leader among the newly industrialized nations involved in the region. Singapore's export-oriented industrialization evolved in several stages and had to overcome obstacles along the way. Its success was dependent on enlightened government policy in cultivating good relations with multinational corporations and cooperation between the government-run and private enterprises. A review of the economy in the last decade gave birth to the Strategic Economic Plan of 1991. Besides underlining the importance of the manufacturing and service sectors, the plan also emphasized the regionalization and globalization of the economy. While the Asian economic crisis has affected Singapore's development, it has not changed Singapore's determination to globalize and liberalize its economy.