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Sustaining Economic Development In A Globalising World

1. Key Driving Force

   • Transportations
     • Reduce time taken for:
       • Travel
         • 20th Century
           • commercial jet aircraft
           • ocean-going vessels
           • containerisation
             • ability to transfer container to ocean-going vessels
               • save time
               • reduce cost
         • 19th century Steam Engine
     • Objects moved from 1 to another area
     • Built efficient and integrated transport infrastructures
       • facilitate movement
     • easy transport of goods and improve trading
   • Communications
     • movement of information from 1 place to another
     • different location
       • faster and convinient
       • via
         • telephone
         • smartphone
     • conferencing satellite technology
       • allow message to be sent instantly worldwide
     • optical fibres
       • high carrying capacity
       • high speed transmission
     • Internet
       • allow access to new products and information
       • TNCs control and coordinate worldwide business easily
   • Transnational Corporations (TNCs)
     • Large registered corporation firms that operate in several countries
       • operations our of origin country
         • Toyota
         • Microsoft Corporations
       • for new market and low production cost
     • coordinated and controlled by head quarter
     • source for component from world before assembling
     • made economies more integrated

2. Impacts of globalisation

   • Social
     • loss of local culture
       • global brand such as Starbuck and McDonald dominate consumer market
       • spread of pop cultuer
         • influence youth negatively
           • lost of local culture
     • Increased awareness of foreign culture
       • more aware of different culture
         • through
           • surfing the net
           • travelling
           • watching foriegn movies
   • Economic
     • income level have increased
     • foriegn investment
       • increase revenue earned
     • negative impact
       • increase competition among nations
       • talented people are in great demand
         • best brain in developing counries goes to the developed countries
           • through high salaries and superior standard of living
           • hard for developing countries to catch up with developed countries
       • widening income gap of rich and poor
         • TNCs can relocate talents from less developed countries to much more developed countries
   • Environmental
     • Environmental Degradation
       • rainforest in many countries have been cut down for:
         • agricultural, industries, transportations, agriculture
         • result in: soil erosion,extinction, flooding and haze
           • Three Gorges Project
     • global warming
       • release large amount of greenhose gases
         • increase in global temperature
     • measures
       • global agreement
       • alternative source of energy

3. Singapore's Strategies

   • Diversifying the economy
     • Life Sciences
       • study of genetics and development of new medical treatment
       • A*STAR set up to build R&D capability
         • set up institute in different areas
           • Example: Institute of Molecular cell Biology
     • Attract set-up of TNCs
       • generate jobs
     • tourism and economic
       • set-up of IRs
         • competition from neighbouring countries
         • cause lack of natural attractions
       • international universities set up schools here
   • Venturing abroad
     • limited land and labour resources
       • regionalisation
         • invest in nearby countries with abundant land, low labour cost and new markets
     • 1980s
       • Chinese delegates came to learn our success
         • SuZhou Industrial Park established
     • SingTel invested over 20 countries
   • Economic cooperation with other countries
     • free trade agreement(FTAs)
       • enjoy more goods and service
       • improve service standards
       • cost saving as no taxes
       • increase profit as sell goods in more countries
       • local companies find it easier to venture abroad
     • Special Economic Zones(SEZs)
       • less stringent economic laws
       • use taxes and business incentive to attract investors
   • Nurturing SMEs
     • families business that operate locally
     • support TNCs operation
     • provide jobs
     • schemes
       • SPRING Singapore
         • various loan scheme
     • ASME
       • new companies grant tax exemption by government for 1st $100,000 income for 3 years
   • Managing Resources Efficiently
     • Developing people
       • Promote entrepreneurship and technopreneurship
         • bankruptcy law ammended
           • Give chance to entrepreneur that failed business to try again
       • Singapore Workforce Development Agency
         • Employability Skills Systems
           • help employee to adapt to new jobs and environment
             • Skills Development Fund provide financial assistance to encourage employer to train and upgrade skills of workers
     • Attracting foreign manpower
       • low birth rate and require new skills
         • support social and development needs
         • take up low paying jobs
         • help kick start new high value added sectors
     • Managing environment
       • manage limited land resources
         • 40% - water catchment areas
         • limited height of building
         • preserve nature sites
         • limited land for waste disposal
       • public education
         • adopt environmental friendly ways
         • education of students in school
         • Bring Your Own Bag Day
         • Do The Right Thing. Let's Bin It!
       • Cooperation
         • international
           • Reduce use of harmful ozone depleting substances
             • Kyoto Protocol in 2006, to reduce greenhouse gases emission
         • Regional
           • ASEAN
             • Haze issues
               • Discuss measures to combat issues