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    Mohammed Khurshid Gauri
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    The document discusses problems Singapore faces due to its small size and population, including limited potential for growth. It proposes solutions such as driving regionalization efforts to invest abroad and create more skilled jobs. Singapore began encouraging domestic and foreign companies to invest in other Asian economies through incentives and government investment funds. This regionalization drive was implemented in 1994 and resulted in 44 Singaporean firms investing $415 million in other countries. It helped boost Singapore's infrastructure and create an exportable advantage.

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    The document discusses problems Singapore faces due to its small size and population, including limited potential for growth. It proposes solutions such as driving regionalization efforts to invest abroad and create more skilled jobs. Singapore began encouraging domestic and foreign companies to invest in other Asian economies through incentives and government investment funds. This regionalization drive was implemented in 1994 and resulted in 44 Singaporean firms investing $415 million in other countries. It helped boost Singapore's infrastructure and create an exportable advantage.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    14 views6 pages

    Economics

    Uploaded by

    Mohammed Khurshid Gauri
    The document discusses problems Singapore faces due to its small size and population, including limited potential for growth. It proposes solutions such as driving regionalization efforts to invest abroad and create more skilled jobs. Singapore began encouraging domestic and foreign companies to invest in other Asian economies through incentives and government investment funds. This regionalization drive was implemented in 1994 and resulted in 44 Singaporean firms investing $415 million in other countries. It helped boost Singapore's infrastructure and create an exportable advantage.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 6

    Problems

    Low population and limited area


    Surrounded by sea
    Loss of potential investors
    Retraining cost of Singaporean workers
    Less concentration on home-grown firms
    Increase in wage rate
    Solutions
    • Regionalization Drive
    • Incentives and developing programs to entice
    potential investors to stay
    • Invest abroad with own competitive
    advantage
    • Creation of more skilled positions
    Regionalization Drive
    • Began with a recognition of Singapore’s future
    growth in competition with ASEAN economies.
    • Committed to support both domestic and
    Singapore based foreign firms with outward
    FDI
    • Singapore govt. pledged its own reserves to
    invest upon $15billion in Asian projects
    Contd
    • 4 step approach proposed by EDB for potential
    investors:
    – Analyze the market potential of selected Asian
    economies
    – Assemble appropriate business partners
    – Forge linkages back to Singapore
    – Refine the political instruments
    Implementation of Realization Drive

    • Implementing Realization Drive, In 1994, 44


    Singaporean firms invested $415million in
    contracts which was completely new idea.
    • Special tax rates are offered
    • Clustering of technological resources
    • Transfer of goods and materials without local
    tariffs
    Results
    • Boasted with best physical infrastructure
    • Offers additional amenities to investors.
    • It created an exportable advantage for
    Singapore.

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