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• Internal factors that affect Singapore• External factors that affect Singapore• Economic strategies for sustainable development• Environmental strategies for sustainable development

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• Limited land

• Shortage of water

• Dependence on imported technology

• Environmental pollution

• Racial vulnerability

• A small and open economy

• Shortage of skilled labour

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Economic Slowdown in Other CountriesEconomic Slowdown in Other Countries

Socio-Political Unrest in Other CountriesSocio-Political Unrest in Other Countries

Environmental IssuesEnvironmental Issues

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How it affects:- Singapore relies on other countries for natural resources - sells to other countries its manufactured goods- reduction in imports and exports mean less business for Singapore. This affects the economy.

Economic Slowdown in Other CountriesEconomic Slowdown in Other CountriesEconomic Slowdown in Other CountriesEconomic Slowdown in Other Countries

Example- Currency Crisis in 1997 and 1998- slowdown in economic activities- many workers lost jobs- Singapore ran into recession

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How it affects:- strong links among countries due to globalisation- countries are inter-related to one another- when one country is affected, others are involved

Socio-Political Unrest in Other CountriesSocio-Political Unrest in Other Countries

Examples- World War II and Singapore’s involvement- Social unrest in Vietnam and refugee problems in Singapore- Political unrest in Indonesia and Singapore’s investment

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How it affects:- air, noise and land pollutions have no boundary- what happens in one country – impact on its neighbours

Environmental IssuesEnvironmental Issues

Example 1 - forest fires in Indonesia in 1997- haze in Singapore leading to unhealthy living conditions

Example 2- collision of two oil tankers in 1997- affected people as well as marine life

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1. Moving Towards a

Knowledge-Based

Economy

2. Improving Workers’

Employability

3. Promoting Manufacturing and Services as Twin Engines of

Growth

4. Building an Information

Technology (IT) Infrastructure

5. Going Regional

and Global

6. Developing Local

Entrepreneurship and

Technoprenuership

7. Promoting Research

and Developmen

t

8. Attracting Foreign Talent

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What is it:- information and knowledge drives economy- need to be knowledgeable, creative and innovative- need to train and upgrade

1. Moving Towards a Knowledge-Based Economy1. Moving Towards a Knowledge-Based Economy

How to achieve it: - greater emphasis on training and upgrading- choose right type of training- no use memorising everything in this computer age more important to review and analyse, in coming up with creative & sound suggestions to issuesvalue-addedness at all levels of manufacturing & service industryEG?

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1. Moving Towards a Knowledge-Based Economy1. Moving Towards a Knowledge-Based Economy

Results:-Maintain long-term competitive edge-Workforce that is more skilled to compete in knowledge-intensive industries eg electronics, IT

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What is it:- new technology and rapid changes obsolete workers - important to keep the workers employable

2. Improving Workers’ Employability2. Improving Workers’ Employability

How to achieve it:- upgrading of skills, eg part-time courses at Bukit Merah Skills Development Centre - retrain rather than retrench employees- training in new areas, eg ITEGs?

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after 2000: promoting continuous learning among workforce•Workforce Devp Agency in 2003: ensure competitive workforce through skills upgrading (new Stat board under MOM)

• target main competencies for IT, creative, financial industries•Data management, game development etc!•http://app2.wda.gov.sg/wsq/Common/hompage.aspx to find out more!

•Employability Skills Systems – new skills to adapt to new job demands and changing work environment•Skills Development Fund: financial assistance to employers to encourage them to train and upgrade skills of their workers

2. Improving Workers’ Employability2. Improving Workers’ Employability

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What is it:- promoting high-technological manufacturing- at the same time promoting services-if one sector fails, can rely on the other sector

3. Promoting Manufacturing and Services as Twin Engines Of Growth

How to achieve it:- a regional service centre (promote services)

- centres of education and research in Singapore- better service eg. DBS and POSB - regional headquarters here

- manufacturing services (promote manufacturing)- import raw materials from other countries and export as refined products

WHY?

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3. Promoting Manufacturing and Services as Twin Engines Of Growth

•Centre for technology intensive, high value-added manufacturing activities

•Attract MNCs to set up technology-intensive, high value-added manufacturing activities here eg electronics, Seagate (hard disk drives), chemical engineering (Jurong Island:chemical hub for ExxonMobil and Shell), Life Sciences (Biopolis)

Generates more jobs locally

Affirms Singapore’s position as a manufacturing hub

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3. Promoting Manufacturing and Services as Twin Engines Of Growth

•Aims to be regional hub for services

•Education (University of Pennsylvania Wharton School of Business, University of Chicago Graduate School of Business, Shanghai Jiao Tong University, Stanford University set up branches in Singapore)

•Strengthen Singapore’s position as a choice tourist destination in SEA•Innovative in offering man-made attractions so as not to lose out to competitors in the region (Integrated resorts (IRs) Marina Bay and Sentosa)

Jobs creation Generate further economic growth to withstand intense regional competition

Reduce dependence on single industry/market

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What is it:- invisible network linking different parts of Singapore - links Singapore with rest of the world- good IT structure would encourage more investment

4. Building an Information Technology (IT) Infrastructure

How to achieve it: 1991 to 1995 - $2 billion for National Technology Plan - IT 2000 Plan (1992)

- prepare Singapore for the IT age through use of computers in workplaces, public places and schools1996 to 2000 - $4 billion National Science and Technology Plan - Singapore ONE (1996)

- world’s first nation-wide network

Purpose?

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What is it:- limited land and labour resources - need to look beyond Singapore for investment mutual benefits – long-term growth potential diversify investments

What is it:- limited land and labour resources - need to look beyond Singapore for investment mutual benefits – long-term growth potential diversify investments

5. Going Regional and Global

How to achieve it:i. Go Regional (Regionalization)

- invest in countries that have abundant land, lower labour costs and new markets- provide infrastructure, expertise and money; in return, host country would provide land and labour for Singapore’s companies1989/94: SIJORI1994: Suzhou Industrial ParkInternational Tech Park in Bangalore, India

How to achieve it:i. Go Regional (Regionalization)

- invest in countries that have abundant land, lower labour costs and new markets- provide infrastructure, expertise and money; in return, host country would provide land and labour for Singapore’s companies1989/94: SIJORI1994: Suzhou Industrial ParkInternational Tech Park in Bangalore, India

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How to achieve it: ii. Go Global

- 1997 and 1998 recession in Southeast Asia- global investment e.g. Africa and Latin America

- EDB: business opportunities in region and tax incentive schemes for companies which set up factories overseas

- TDB: grants for companies to move to new markets; contacts authorities for overseas investment

- government: provides opportunities eg. setting up of Southern Africa Investment Fund of US$100 million

Investments in Australia, Indonesia, India, Middle East, Africa, Latin America, Central and Eastern Europe

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What is it:- ensuring entrepreneurs are highly skillful- need to transform entrepreneurs into technopreneurs

6. Developing Local Entrepreneurship and Technopreneurship

How to achieve it: - role played by government

- established one-stop centre to assist technopreneurs- allows for changes in law to accommodate risk taking e.g. change in bankruptcy law

- educational opportunities- technopreneurial skills taught in NUS and NTU

Kenny Yap of Qian Hu Fish Farm, a local ornamental fish service provider, Creative Technology, Hyflux

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What is it:- development of own talent pool and own technologies- importance of successful R&D

7. Promoting Research and Development

How to achieve it:- encourage local enterprises to partner with universities and national research institutions- encourage international partnerships to promote science and technology exchanges eg. joint projects with countries like China, Germany and India

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- recruit more foreigners in areas where talent is inadequate- learn from foreign talent to improve own labour force

How to achieve it:- more foreigners in fields like petrochemicals and wafer fabrication - Research Scientists and Engineers- information centres overseas e.g. London and Hong Kong- foreigners in local universities- foreign talent could provide avenue for more business opportunities overseasEGs?

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1. Moving Towards a

Knowledge-Based

Economy

2. Improving Workers’

Employability

3. Promoting Manufacturing and Services as Twin Engines of

Growth

4. Building an Information

Technology (IT) Infrastructure

5. Going Regional

and Global

6. Developing Local Entrepreneurship

and Technoprenuership

7. Promoting Research and Development

8. Attracting Foreign Talent

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Why do you think the Asian currency crisis caused adecline in visitor arrival from ASEAN countries to Singapore?

ASEAN countries were the most affected by the currency crisis. Due to the crises, the people in these countries hadless money to spend. They thus avoided Singapore as the cost of living in Singapore is very high.

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How will the decline in visitor arrivals affect other related economic activities?

Impact on service industry – employees will lose their jobsdue to reduced tourists (eg retail, hospitality, F&B, tourism)

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Why do you think that human knowledge is consideredthe key factor for Singapore’s successful future growth?

Since Singapore has no natural resources, it has to ensurethat its human resource is very good. As such, there is animportant need to ensure that the people are knowledgeableand prepared for the challenges ahead.

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What problems will the retrenched workers andeconomy face if workers refuse to be retrained?

If they refuse to retrain, they will not be able to get another job easily. As such, they will be financialburdened. This would mean an increase in unemployment, which would worsen the economy as money circulation would be reduced.

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Why do you think the Singapore government needs tohelp the private companies by co-investing with them?

This would ensure that the private companies are well-equipped and prepared to face challenges.

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Why do you think some Singaporeans may choose to livepermanently in other countries?Why do you think some Singaporeans may choose to livepermanently in other countries?

Pull Factors:Some of them might feel comfortable staying on as they are used to the lifestyle there.Opportunities to pursue passion

Push Factors: Others might decide to settle down overseas due to the inability to cope with the fast pace of Singapore life.Lack of opportunities

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How do you think Singaporeans can stay rooted to Singapore while living abroad?How do you think Singaporeans can stay rooted to Singapore while living abroad?

With IT facilities freely available overseas, they can keepin touch with what is happening in Singapore through emailsand internet access. NS & other common experiencesHome & FriendsConnection with the community & surroundings sense of ownership

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Do you agree that maximising our strengths and minimising our weaknesses are sensible approaches to planning for our future? Explain your answer.