!

Indonesia 1949-57: 1957-65: 1967: 1970s: 1980s: Remains a primary economy. 1990s:
Backdrop: State rises - Sukarnos Foreign Investment Law - IMF plays central advisory role in Indonesias financial restructuring. More US, - Repelita V: Industry main focus, Agriculture 2nd (1989-94).
as central (failed) Guided by US- trained Indo Japan investment - Repelita III: Agriculture main industry, Mining & Energy 2nd.
- Declining planner in a Economy Economists. (Tax (1979-84) - Private sector still lacked political autonomy
foreign-owned vacuum of concession, guarantee - Oil price surge!
economy social & - Most against expropriation) - 1980: Net FDI US$180m, oil revenues constitute 70% export - Ministry of Trade gives Tommy Suharto monopoly rights to clove
economic investment from - Oil export revenue rises 45.5% in 1970-81 earnings. Foreign loans provide 42% of state development crop, with US$350M financing from Bank Indonesia (reserved for
- No bourgeoisie power. USSR/ 1967: Inter-Governmental budget agricultural producers)
Communist Group on Indonesia - GDP growth rate 7-8%/year.
- Endowed with oil states) (IGGI): 14 nations, funnel - OPEC overproduction, oil prices fall to less than half the 1981 - Liberal economic environment gave existing big businesses chances
for aid ~ $2.5B in 1985/86 - State undertakes developmental projects. prices (1982-86). to expand, continued to preserve monopolies in the real sector.
- Article 33 of - Expropriate
Constitution: Dutch assets 1968: Domestic Capital - Subsidies for agricultural industries (BIMAS program upped rice production by - Oil taxes fall 27%, growth rate halved by 1985. - Eka Tjipta Widjajas Sinar Mas Group expanded edible oils
Right of State to Investment Law (PMDN): 50% by 1980) monopoly to regional paper & pulp production
control strategic - Anti-Chinese Provides licenses, - 3 main export commodities in 1985: Petroleum, Veneer &
industries. discrimination mandatory for all business - Pertamina & Dept of Industry led investments -> State firms produced 75% Plywood, Rubber. (69.3% total exports) - William Soerjadjayas Astra Group expanded from automobiles to
ventures + import cement, 52% paper & machinery products, 40% food manufacturing. banking & real estate
- ISI Strategy: concessions, privileges in - Repelita IV: Industry main focus, Agriculture 2nd (1984-89).
Export oil, gas, credit access, for domestic - Sekneg State Secretariat gave contracts for Govt construction projects. - Automobile production shares: Astra Group 40%, Liem Sioe
minerals, investors. - Need to DIVERSIFY exports. Leongs Indomobil Group 21% (Mid 90s) -> Indonesia failed to
agriculture. - Anti-Chinese ethnic-economic tensions result in Bandung (Oct 1973) & develop capacity to produce engines as a national industry, as
Invest - Bulog State Procurement Malari (Jan 1974) Riots - Deregulation, simplification of licensing procedures, adding tax protectionism (100-300% tariffs) in these lucrative industries kept the
earnings in Agency managing rice incentives & concessions industrial/manufacturing base narrow due to lack of competition in
steel, procurement, distribution - Tensions defused by restricting Chinese investment, providing more industry.
shipyards, & Pricing (1968) credit to small indigenous traders & mandating that all companies - Concentration of economic power with Sino-Indonesian
give state investing under PMDN be 75% Indonesian-owned within 10 years, but businessmen (3.8% of population controlling 73% of END 2000: 3 main export commodities - Petroleum, Garments,
credit + import - Bulog made Bogasari this only made businessmen find indigenous sleeping partners instead economy) Telecommunications Equipment. (30.2% of total exports ->
protection for (owned by state, Liem of growing domestic entrepreneurship. Diversification)
infant Sioe Leong & Suhartos
industries. step-bro) sole flour miller - Backlash from foreign investment, calls for Indonesia to end protectionism, - October 1998 Reform Package loosening banking rules, more
(1969). total non-oil investment falls by 45% from 1974-80. breathing space for banks, boosting investor confidence -> over
- Anti-Dutch, 40 new banks open in 2 years.
Anti-Chinese - Start of central planning
nationalistic with Repelita I (1969) - Lack of transparency in liberalization, concentrated economic
policies power at peak of New Order.
reduced foreign
trade & capital, - Bulog made P.T Sarpindo (owned by Tommy Suharto & Bob
GNP/Capita fell Hasan) a soymeal monopoly (1988).

- Transition to EOI: Non-oil exports rise from 31% to 50%,

agriculture GDP share falls from 24% to 19%, manufacturing
share rises from 13% to 18%, GDP growth rate rebounds
from 2% to 7% within the decade.

- Foreign Investment exceeds US$4.7B in 1989, increasing 6x

from 1980-90.

- Indonesia has Asias largest debt of ~ US$58B!

Philippines 1950s-65: Pioneer of ISI in SEA
- Primary exporter - Export agriculture, expanded by
of sugar etc - Preferential entry to US markets
- Oil importer - Early manufacturing: Processing of export crops (sugar
milling, vegetable oil production).
- Political tutelage,
best start point - Import controls, foreign exchange controls, tax
incentives facilitating ISI
- Made infant industries inefficient
- Manufacturing share of GDP rises: 8% to 20% (1950-60),
agriculture share falls: 42% to 26%
- Anti-Chinese Filipino First movement by Garcia
- 1954 Retail Trade Nationalization Act to eject Chinese
from rice, corn trades
- 1958 Congress Bill for 60/40 Filipino ownership in key
industries
- Thus, Filipino participation in import trade almost tripled
from 1948-65.
- National Development Company secured land for
agriculture, established other agencies, Philippines Sugar
Institute (1951), National Waterworks & the Sewerage
Authority (1995)
- 1960s: Program Implementation Agency (PIA), first
attempt at state economic planning under Macapagal,
implemented currency decontrols in the early 1960s
1967 Investment Incentives Act. Filipinos encouraged to do joint ventures
with foreign firms, especially agriculture TNCs, to reach rural farmers
Despite introduction of new crops, 70% of export value (1967-71) still came
from sugar, coconut forestry products. (Declining prices, narrow export
base)
1970s: Global Recession
1970: Export breakdown: 92% traditional primary products, 7% non-traditional
labor intensive manufactures (garments, electronics)
1970: GDP breakdown: 28% Agriculture, 30% Industry, 23% Manufacturing
Average 6% GDP growth rate, largely financed by international loans, Marcos
development projects like new roads, irrigation systems, tech research.
Consultative Group for foreign advice, support for rural infrastructure
programmes, loaned for state credits
1970s: Cement & textile export breakthrough, garment exports rise 7x.
1972: Martial Law
Intensification of development planning with 22 super-agencies, Planning,
Programming, Budgeting System & Development Budget Coordinating
Committee.
State dominance in all major sectors with Philippine National Oil Company,
National Power Corporation, National Fertilizer Corporation & state banks -
Philippine National Bank & Development Bank of the Philippines
National Economic Development Authority, chaired by Marcos, directed
economic development
Philippine Chamber of Commerce & Industry (PCCI), official representative
of the private sector, 12 designated businesses groups promoting Philippine
exports
Foreign debt at US$2.2B, US$25B by 1983 (in top 10 most indebted nations)
- Philippines is self-sufficient for rice for the first time.
- National Development Company secured land for expansion
1980s: Political instability - succession uncertain, Aquino IIs 1990s: Liberalization & Privatization under Ramos
assassination.
1990: GDP breakdown: 22% Agriculture, 35% Industry, 22%
1980s: Very poor growth: GDP at 1.4%, agriculture at 1.2%, Manufacturing
manufacturing at 0.8%, industry shrinks by 0.1%.
- Chinese community (1.3% of population) controlled 50-60% of Energy sector opened to foreign firms
the economy, partly assisted by cronyism regardless of ethnicity
1992-7: Privatizing state enterprises made $12B extra fiscal budget
Crony Capitalism:
- Philippine Sugar Commission run by Roberto Benedicto did 1993: Breakup of monopolies (partially)
not pass on higher prices to farmers even when sugar prices rose - Cojuangco family owning Philippine Long Distance Telephone with
-> concentrating wealth with the elite 90% market share in the mobile service now had more competition,
- Marcos equity in Lucio Tans tobacco empire, Fortune bringing the total to 13 telecos, but PLDT remained ahead of rivals.
Tobacco - Philippines largest cigarette maker by 1980 with Privatized firms acquired by Marcos former cronies
Marcos favors, even as far as allegedly letting Fortune Tobacco
write self-favoring tax laws! 1993-7: Surge of inter-ethnic tensions against the Chinese elite, rise in
- Marcos bailed out Rodolfo Cuencas Construction Development bank robberies and kidnappings of Chinese-Filipinos with 179-286
Corporation of the Philippines with 3B pesos cases per year, total annual ransom quadrupled from $2.5million
- Easy state credit for crony firms: Marinduque Mining to 10.4million across the period.
Company (15B pesos in debt) & Delta Motors Corporation
(2B pesos in debt) 1994: SEZ Investment peaks, shift to electronic goods exports
1980: GDP breakdown: 23% Agriculture, 37% Industry, 22% 1996: GDP growth peaks at 5.8%
Manufacturing
END 2000: 3 main export commodities - Semiconductor Devices,
Early 1980s: Loss of investor confidence due to instability -> Automatic Data Processing Machines, Petroleum & Oil Products
capital flight (64.7% of total exports -> Export concentration, reliance on tech
exports, but the shift away from fruits to telecomms devices shows
1981-5: Easing transition to EOI venturing into other sectors)
- Tariffs cut to maximum 50% over 5 years, effective protection
for manufacturing cut from 44% to 29%
- General liberalization of import licensing for 1000 items
1983: 90-day moratorium sought on repayment of IMF loans.
1985: Export breakdown: 28% traditional primary products, 60%
non-traditional labor intensive manufactures (like garments,
electronics)
1987 & Beyond: Aquinos Recovery
1987-92: Debt repayment took up 10% of GDP under Aquino

1972-1977: Debt service ratio > 20%, above IMF danger zone. By 1992: Poverty only down by 3%, top 10% in society
controlled 40% of wealth, bottom 30% controlled only 10%
1978: Sugar prices at 7 cents/pound, down from 67 cents in 1974.
- State absorbed 14B pesos of losses for Marcos crony Roberto Benedicto in
the sugar sector

Thailand 1800-1930s: Early Context 1958: Sarits Revolution & ISI 1980s: Rise of EOI 1990s:
Backdrop: - 1855: Browning Treaty gave both Chinese & Western 1951-69: Thailand receives over $900m in aid & loans from US, invited more 1980: Successes of Sarits policies Urban-rural inequity: Bangkok (16.2% of population) controlled 55.4%
traders equal concessions. capital from others, esp. Japan. - 6million baht collected in foreign investment over the last 2 of GDP while Northeast Thailand (34.6% of population) controlled
- Never colonized decades since 1960. 10.6% of GDP in 1990. (Inequity worsened)
- Late 1800s: Govt investment in rice trade to dissipate 1958: Largest 4 banking groups (Bangkok Bank, Rattanarak Bank,
- Autonomous Chinese trader fortunes via Privy Purse Mahaguna Group, Lamsam Group) - only the last was not owned by Sino- - 32.3% of exports are manufactured. - Primary products only constitute 26.9% of exports in 1994, down from
business class - 1890s: Chinese had a patron-client relationship with Thai, dealt with 51 firms. 76.2% in 1975, indicates rise in manufactured exports.
formed, mostly monarch, used Chinese capital labor etc to establish joint - Joint ventures with Japan and US in automobiles (Siam
Chinese state monopolies 1959 World Bank IBRD Report: Urged a limited, infrastructural Motors) & textiles (Saha Union) using domestic capital. END 2000: 3 main export commodities - Semiconductor Devices,
development role for the state, with long-term development planning, boost - 1980-90 overall: Manufacturing & Industry grew the most (6.5% Office Machines, Telecommunications Equipment (23.3% of total
- Plural society - Until 1910: Pax Chakri monarchy promotes growth, trade manufacturing business with private capital and to support ISI with credit & & 7.1% respectively) and agriculture declined the most (by exports -> Diversification)
alongside Chinese businessmen. infrastructure provision which Sarit follows. 12.2%) in share of GDP.
- Constitution
gave state the - 1910s-30s: Private sector growth 1959: Board of Investments (BoI) directly oversaw investment promotion - Average annual growth rate at 7.9%.
right to intervene - 1910s rice trade boom -> Big Five rice barons rose, network activities.
in any nationally- with Chinese firms rather than state patronage - Highest export growth rate in SEA, at 14%
important part of - Rise of new Chinese entrepreneurs meeting demand for new 1959: Industrial Finance Corporation of Thailand (IFCT) provides loans to
the economy. products, ranging from cars, breweries, coconut oil, cigarettes expand private industrial ventures, but credit was largely given to powerful By 1980s: The Chinese (10% of population) control 81% of the
etc, formed associations + asked for indigenous business bourgeoisie like the Thai Farmers Bank & Bangkok Bank, not small economy, had strong links to international capital too (Saha
rights against Western traders capitalists. Union, Sahapathanapibul Group in consumer goods)

End result - 1929 survey: 20,259 rice traders, 3709 rice
millers, 12,738 timber traders, 7053 forestry product
traders
1932 bloodless revolution: Economic Nationalism, state-
led development
- Phibuns Thai economy for Thai people, drive out
foreigners by competing via state enterprises
- Ministry of Defenses cotton & paper mill
- Ministry of Economic Affairs investment in sugar
factories, created Thai Rice Company for middlemen to sell
rice exports to, TRC handles 70-80% of export rice in 1939!
- State held equity in Siam Steam Navigation Company
(shipping firm -> Diversification)
Mid 1930s-Late 1940s: Setup pubic utilities, grow domestic
consumer goods to replace European imports, expand
primary product trade in tapioca processing, sugar milling
1947-57: Postwar State-led development
Bangkok Chamber of Commerce concerned about
uncertain investment climate, high risk of profitable
enterprises being nationalized
1960s annual GDP growth rate averages 8%.
1960 Promotion of Investment Act providing tax holidays, exemptions and
conditional profit repatriation.
1960 exports: only 1.2% are manufactured goods.
close to IMF danger zone at 20%
First Development Plan (1961-6): Credit provision for investment a key thrust,
focus on agricultural infrastructure with irrigation, crop research
New state agencies formed: National Economic and Social Development
Board (NESDB), Bank of Thailand
Until Early 1960s: Thailand remains a primary produce exporter: Rice, rubber,
tin & teak constitute 50%-90% of exports, since the 1800s.
1964-72: Foreign capital only accounts for 12% of total capital formation
Second Development Plan (1967-71): 2 Development Plans collectively
focused on giving privileges towards encouraging ISI.
By 1968: Export value of other crops exceed rice value for the first time, with
state assistance with tractor & fertilizer provision, introduction of new crops.
Early 1980s: Of 70 leading business groups, only 3 were not
owned by Sino-Thai businessmen. One is the Crown Property
Bureau (managed royal assets and had holdings in land and non-
agricultural enterprises like Siam Cement)
Mid 1980s: Debt at 38% of GDP, debt-service ratio at 19.7%,
1985: Several export taxes abolished, special credit facilities for
exporters at Bank of Thailand, firms allowed full foreign
ownership if they exported all or most of their output.
- 3 main export commodities in 1985: Rice, Vegetables &
Roots, Rubber. (28.7% total exports)
Flow of funds loosened, investors allowed to borrow overseas,
more foreign banks and small finance companies opened.
Even in 1986: 11 of 19 largest Thai firms are state-run
Sixth Five Year Plan (1987): Scaling back of state role in the
economy to just a planner, supporter and facilitator of private
sector activity.

1952: Chinese required to form 3 centralized associations for
gold, jewelry and banking businesses respectively to utilize
their wealth better for the economy.
By Mid 1950s: Chinese businesses from the 1930s rice boom
and banking sector formed alliances with the coup group in
power:
- Many state monopolies were semi-governmental and joint
ventures with these businesses e.g. Sophonphanich
Familys presidency over the Bangkok Bank. (Private
sector resilience)
By 1969: Irrigation land expanded to 2.2m hectares (up from 600,000 NESDB relieved of supervisory role over state investments in
hectares in 1947) 1988
1971: For the first time, manufacture & industry overtake agriculture in share of Urban-rural inequity: Bangkok (16% of population) controlled
GDP (totaling at 47.3% together vs agriculture at 29.8%) 48.2% of GDP while Northeast Thailand (34.6% of population)
controlled 12.9% of GDP in 1989
1973: Largest 4 banking groups dealt with 173 firms. Thanom, Praphas,
Narong involved in a total of 137 firms, given state protection
1973: No foreign debt!
1975: Primary exports constitute 76.2% of total exports

1973-6: Oil shock, US withdrawal from Vietnam political chaos under General
Prems democratic experiment -> Rapid capital flight, end of US aid.

1979: 308 of 500 largest local firms fully Thai-owned

- Largest 4 banking groups dealt with 295 firms, Bangkok Bank held 1/3
market share, financed 42% of all Thai exports.

-> Despite rapid industrial growth, ISI was inert, benefitting only 15-20 families
of elites. Level of protection doubled the 1970s against strong Japanese
investment in textiles and auto assembly.

Malaysia 1956: Federal Land Development Authority (FELDA) 1970: 75% of households below poverty line are Malay 1980s: Return to ISI under Mahathir, new focus on heavy 1990s: Industrial Deepening & Widening
Backdrop: formed. industry
1971: New Economic Policy (NEP), (alongside Second Malaysia Plan 1990-95: 20% increase in exports, fall in primary exports (hence rise in
- Plural society 1958: Pioneer Industries Programme: processing primary 1971-75) restructure Bumiputra employment and corporate capital 1981-85: 4th Malaysia Plan: Industry expenditure industry rose Industrial Exports).
products (rubber, tin, timber) & consumables (beverages, ownership (given that Malays owned 2% of corporate wealth, 63% from 15.3% to 27.3% total expenditure. - Highest export growth rate in SEA, at 20%
- Divided biscuits) foreigners & 35% other Msians), eliminate identification of ethnicity with
occupationally by economic function, elevate the Bumiputras economic status. 1981: Heavy Industry Corporation of Malaysia (HICOM) made Skills Development Centers across states, first in Penang, 1989.
ethnicity, 1959: Initially, 18 Pioneer firms. ! state investments in cars, cement, steel, motorbikes and highway
economically - Corporate Equity Target of 30% for Malays set for 1990. development projects. - 1990: Action Plan for Industrial Technology Development, to make
specialized labor. 1960s: - Provided subsidies & protection for Bumiputras in the domestic Malaysia a high-tech, industrialized economy with trained workforce by
- Laissez-Faire ISI under Pioneer Industries Programme - Bumiputra Commercial & Industrial Community (BCIC) proposed to capital goods industry, helping form Bumiputra companies like 2020
- Strong focus on support equity and managerial control to raise a Bumiputra business class. Proton, Kedah Cement, Perwaja Steel (in Terrebganu).
Bumiputra rights - Lacking a development strategy, domestic market - 1992: 13 state enterprises privatized.
(enshrined in saturated with manufacturing growth saturating at ~ 9% - Industrialization efforts dominated by Chinese (Kuok Brothers, Hong Leong 1980-84: Non-oil primary commodity prices fall, public debt
Article 153 of GDP in the 1960s. Group) worsened with HICOM programs backed by state loans, - Human Resource Development Act
Constitution) - inefficiencies of public sector causing 64.3% of deficit (1980-85)
- 1968: Attracting Foreign Investment: Investment Incentives - Now 246 Pioneer firms (1971), consumption goods share of industrial output - Double Deduction Training Incentive, Human Resource
- Equity as Act. rose from 21.9% to 31.2% & consumer durables share rose from 12.6% to Privatization (1983) Development Council
economic goal 24.1% but no focus on any key industry, Malaysia Incorporated (1983) to make public sector competitive
by: selling off state companies, private finance of state projects, - 1993: Malaysian Technology Development Corporation (MTDC)
- FELDA directed state investment to urban & rural development to support contracting private firms for state projects, making state invested in 8 firms for R&D
Bumiputras economically. monopolies competitive again. - Malaysia Industry-Government Group of High Technology
(MIGHT) formed to identify & promote investment opportunities for
- Rubber Industry Smallholders Development Authority (RISDA) helped Ethnic Deregulation, increasing foreign investment innovative firms.
finance Malay rubber smallholders for better crops. - Chinese (28% of population) controlled 69% of economy.
- 1995: Ministry of Science, Technology & Environment (MOSTE)
1971: Free Trade Zone (FTZ) Act - Tariff-free platforms for firms exporting min. 1985: Industrial Master Plan identifies strategic sectors to appraisal of HR institutions to create & sustain skilled labor for high-
80% of output, investment surges. develop. tech economy

1975: Industrial Coordination Act (ICA), screening firms for NEP
characteristics to be registered.
- New state agencies give Bumiputras abundant, interest-free finance riding on
the rise in oil prices of the late 70s: Perbadangan Nasional (National Trading
Corporation PERNAS in 1978), Permodalan Nasional Berhad PNB
(National Equity Corporation), other State Economic Development
Corporations (SEDCs)
- 3 main export commodities in 1985: Petroleum & Oil
Products, Semiconductor Devices, Automatic Data
Processing Machines (54.4% total exports)
1986: Promotion of Investments Act incentivizing foreign
capital, especially if into an export-oriented industry.
1986: North-South Highway Project contracted to United
Engineers owned by UMNO, political cronyism.
- 1996: Multimedia Super Corridor Project
NEP Corporate Equity Target 30% failed, still good increase in
Bumiputra corporate share from 2.4% in 1971 to 20.3% in 1990, poverty
rate fall from 40.3% in 1971 to 15% by 1990
END 2000: 3 main export commodities - Semiconductor Devices,
Automatic Data Processing Machines, Petroleum & Oil Products
(44.5% of total exports -> Diversification)

Singapore 1950s and before: Early export orientation: Trading port,
Backdrop: SG dealt with a wider range of goods than other SEA
economies, not just primary commodities like rubber, tin,
- No natural pepper, petroleum but also manufactures like textiles.
endowment
1947: 30.9% of workforce in services sector, 23.2% in
- Entrept trade commerce, 16.5% in manufacturing vs 8.1% in agriculture.
based strategic
location Late 1950s: Foreign advice, industrialization begins
- 1955: International Bank for Reconstruction &
- Merger & Development (IBRD) Report recommends expanding
Separation from industrial sector, attracting FDI, state plays infrastructural role
Malaysia
- 1959: Lyle Report echoes IBRD
> Pioneer Industries Ordinance exempts pioneer product
manufacturers from prevailing taxes for a given duration
> Industrial Expansion Ordinance gives varying levels of
income tax breaks as firms expands
1960: Manufacturing contributes 13.2% of GDP.
- 1961 Winsemius Report reiterates previous two reports,
prompts Development Plan 1961-64 + formation of EDB in
1961
> 58% of $871m development budget was for economic
development.
- 1964: Slight slowdown in growth of manufacturing due to
Indonesian policy of Konfrontasi
INDEPENDENCE
End of Common Market for sustainable ISI with Malaysia
1968: EDB makes subsidiaries - DBS, JTC, National
Productivity Board.
- Restructured education system focusing on technical,
vocational studies (Ngee Ann College, Singapore Poly,
1968/9). Enrollment upped 8x in the next decade.
1970s: New Challenges, reorientate to export, away from ISI
- British bases withdrawn (1971), 40,000 jobs lost (10% national income)
- Rising competition from industrializing Malaysia, Indonesia.
States export concessions, human capital development:
- Tax concessions for exporters
- MAS lowers interest rate to finance export transactions
- Export Credit Insurance Scheme (1976) to lower export risks, commercial
or otherwise.
- Small Industries Finance Scheme (1976) to help small industries expand for
export orientation
- Foreign-affiliated firms make up 71% of SG exports (1976).
- Investment Breakdown: Main Industries
Japanese: Textiles & Electronics
British: Advanced Manufacturing
US: Petroleum
Mid 1970s: Slight slowdown in growth of manufacturing due to global recession
1977: Under PAPs stable governance, lost man-days fall by 99%. 27.2% of
population employed in manufacturing, highest increase among all sectors from
1947. Import & Export of machinery tripled and trade of crude materials fell to
one third from 1960.
Investment promotion policies:
- Tax exemption for Pioneer status firms
- Free profit repatriation
- Simpler immigration for skilled and capital-rich people.
1978: Capital flow restrictions abolished, SG-based firms allowed full foreign
ownership. Govt keeps upgrading infrastructure.
1980s: Second Industrial Revolution of 1979 - Tech,
Services, Regionalization
1980: Manufacturing contributes 29.1% to GDP, regionally highest
manufacturing share, up from 20.5% in the 1970s
1981: GIC set up to invest in high-tech MNCs overseas.
1983: Singapore Technologies Corporation set up to promote
advanced tech.
1984: Value-add in productivity per worker doubled from 1979
status due to tech integration.
- 3 main export commodities in 1985: Petroleum & Oil
Products, Semiconductor Devices, Automatic Data
Processing Machines (39.8% total exports)
Mid-1980s recession: Shift to a total business center with
emphasis on service sector
1986: Economic Committee under LHL: Vision of a Total
Business Center, providing a range of clustered corporate
services
- Co-opted private interests by incorporating private sector views
to reach this conclusion.
1990s: Regionalization
1990s: Fall in Industry, Manufacturing GDP shares from by 4% & 2%
from the previous decade
Government Role by 1990:
- 70 Stat Boards
- Owned 50 companies with 566 subsidiaries through 3 holding
companies: Temasek, Singapore Technology & Health Corporation
Holdings
- State corporations in vital Industries (Neptune Orient Lines, SIA
1972, Singapore Pretroleum Company 1969)
Over 60 TNCs Asian headquarters in SG
1990s: Setup of Johor Riau Growth Triangle with Indonesia &
Malaysia, Suzhou Industrial Park in China.
1989-90: Singapores outward FDI doubled from S$8.7B to S$16.9B
Inequity: 1990 MOF Census showed 20% of households have
incomes <$700, 50% < $2100, top 10% >$9700 per month.
1993: Singapores outward FDI reaches S$28.2B
1994: Regional Business Forum (RBF) bringing together public &
private sector representatives to co-ordinate regionalization drive.
1995: S$1B Cluster Development Fund (building on 1986 vision of
Total business center)
END 2000: 3 main export commodities - Semiconductor Devices,
Automatic Data Processing Machines, Petroleum & Oil Products
(50.2% of total exports -> Concentration of exports, reliance on
electronic exports.)
!

- Integrated other subsidiaries like CPF, POSB (to accumulate

domestic capital), Neptune Orient Lines (1969) to cut
freight cost for SG-manufactured goods.

- Foreign investment in manufacturing rise 24x from 1965-70.