Templates on globalisation JunLi, Jamie, Poh Choo, Gillian, Huili 4H Can Singapore compete in a globalised world?

Singapore canglobalisation Templates on compete JunLi, high Poh Choo, Gillian, Huili 4H Have Jamie,value-added manufacturing activities in Singapore - Singapore has many factories and industries manufacturing goods as other countries invest in Singapore and there is demand for such activities due to the strong economy. - More than 20 of the world's top thirdparty logistics companies (3PLs) are based in Singapore the preferred logistics and supply chain management hub for both the 3PLs and major manufacturers.

Singapore cannot compete No natural resources/shortage of manpower - Due to opportunities overseas many Singaporeans migrate to other countries in search of work Brain drain shortage of manpower decline in economy Singapore cannot compete - Decline in birth rate ageing population less Singaporeans to contribute to Singapore more Singaporeans needed to support the ageing population lack of manpower economic strifle Singapore is unable to compete

- With the advent of the global economy downturn, as well as greater - Singapore has to rely on other public awareness on carbon emission countries small land area not rich in companies in these two sectors need natural resources which comprises of innovative solutions. non-renewable resources, renewable resources and water resources. The - Infocomm technology both an conservation and management of enabler and transformative force for water resource a huge challenge for manufacturers and logistics providers countries across the globe. to adapt, survive and thrive in the new world order. - The use of land to conserve water has to be integrated with the use of land for The Infocomm Development socio economic growth Water itself Authority, in collaboration with other being a scarce resource, has to be used government agencies, have launched a judiciously. number of infocomm initiatives. - Water is essential agricultural - The main goal is for the Republic to activities and daily activities become a High Value Manufacturing Singapore heavily-dependent on other Hub and Supply Chain Nerve Centre, countries to import water powered by infocomm technology. - As a High Value Manufacturing Hub Singapore is host to high value-added manufacturing and related activities enabled by infocomm Such activities involve leveraging on technology to enable end-to end connections across manufacturing supply chains and complex manufacturing activities. As a Supply Chain Nerve Centre Singapore is where large-scale manufacturers coordinate and control their regional and global supply chains using infocomm technology. These will be supported by a world-class logistics infrastructure. - High demand for manufacturing activities due to income generated better economy gives an edge over competitiorssingapore can compete Non renewable resources in Singapore Natural resource coal, oil, natural gasmillions of years to form cannot be replaced - Singapore has very limited non renewable resources The economy is dependent on oil and natural gas imports. Singapore took a conscious decision to move from fuel oil to natural gas in 2001.Currently natural gas accounts for 80 per cent of the electricity generation. - Due to lack of land Singapore is unable to harness wind energy or other forms of renewable energy to cope with rising demands thus, Singapore cannot compete as other countries have an edge over singapore

Templates on globalisation JunLi, Jamie, Poh Choo, Gillian, Huili 4H Weighing Singapore can compete due to the high value-added manufacturing activities in Singapore. It plays an important role in ensuring Singapores success in a globalised world as the manufacturing activities generate income and increase the output and productivity in Singapore. Workers are sent for skills upgrading to ensure Singapore has the latest manufacturing technology. Singapore may not compete due to lack of natural resources and shortage of manpower. However, methods like NEWater has made it possible to overcome the problem of water shortage and the government have tried various methods to harness renewable energy, with some success. The government has worked with governments from other countries to ensure a constant supply of gas imports. The government has used land reclamation to overcome the problem of land shortage and used land wisely. Foreign talent help to lend much needed expertise and replace the brain drain problems along with the problems of a low birth rate. Hence, the lack of manpower can be resolved by the influx of foreign talent and foreign workers. Hence, Singapore can compete in a globalised world.

Do you agree that Singapore does not benefit from globalization? Benefit Does not benefit

Templates on globalisation JunLi, Jamie, Poh Choo, Gillian, Huili 4H Improvement in standard of living - More trade and countries opening their doors to foreign investments increase in revenue government uses funds for education, health, defence, housing, etc benefit citizens higher standard of living - More free trade consumers can purchase a variety of foreign goods besides local goods increase in lifestyle choices higher standard of living - Singapore originally lack natural resources more trade overcome problem of scarcity of resources development of country i.e. build more infrastructures higher standard of living Widening income gap between rich and poor - Technology advancements in every sector and technology increases demand for workers with high skills and knowledge older generation / lowlyskilled lose out in terms of employment widening income gap - The rich continues to prosper because of better opportunities while the poor and lowly-skilled workers face economic problems such as retrenchments - The lowest 20% of households has seen their incomes per capita decline from 2000 to 2005 - Poverty cycle of the poor

- Increase in income levels e.g. average household income increased from $4940 in year 2000 to $5400 in year 2005 improvement in standard of living Weighing - Makes Singapore globally competitive will not fall behind other countries benefit - Attracts even more foreign investors due to conducive environment further economic growth benefit - Helps build education and healthcare hubs attracts more people from all around the world to study or get medical treatments here economic growth benefit - Government needs to spend more money to support needs of poor lesser money for economic development does not benefit - Tension between the rich and poor social instability if problem not handled properly does not benefit - Poor not given opportunities to prosper may support communism riots social instability drives foreign investments away lesser economic development does not benefit

Templates on globalisation JunLi, Jamie, Poh Choo, Gillian, Huili 4H

Can Singapore deal with the challenges posed by globalization? Challenges: Economic slowdown in other countries Transnational terrorism Ageing population Maturing domestic economy Rise of China and India as competitors Disease outbreak e.g. SARS, bird flu Can deal Singapore introduced many strategies to overcome the challenges Cannot deal Little land and resources available - Singapore is a small country with a total land area of about 700km2 - Singapore needs to develop with limited land - Singapore lacks natural resources.

1. Diversifying the economy

Singapore will be a centre of technology-intensive, high valued-added manufacturing activities e.g. chemical engineering and pharmaceuticals Venture unto life sciences-study of genetics and development of new medical treatments using gene therapy, new drugs and genetically modified food products. Set up Agency for Science, Technology and research (A*STAR) to do R&D capability A*STAR set up research institutes to undertake research in different areas e.g. Institute of Molecular and Cell Biology established in 1987 to develop and support biomedical R&D capability Attract TNCs to set up high valued-added manufacturing activities here e.g. Seagate: provide jobs and affirm Singapore as manufacturing hub Singapore to be regional hub for education and tourism Leading international universities set up branches here e.g. Stanford Uni, Shanghai Jiao Tong Uni

- Little land and resources rely on other countries for resources (through trade) higher production costs more expensive products economic loss fewer foreign investments cannot deal with challenges - Little land to build infrastructure for healthcare, education, etc sectors unable to expand further less competitive lesser economic growth as compared to other countries cannot deal with challenges - Little land and resources not able to support large population drives away foreign talent as they do not benefit small labour force and ageing population less economic development cannot deal with challenges

Templates on globalisation JunLi, Jamie, Poh Choo, Gillian, Huili 4H 2 Integrated Resorts (IRs) to be built in Marina Bay and Sentosa to compete with neighbouring countries for the tourist dollar.

How do the strategies overcome the challenges? With more high valued-added manufacturing activities in Singapore, it creates more jobs in new fields R&D in various manufacturing and Life Sciences activities will give Singapore competitive edge over neighbouring countries and affirms her position as manufacturing and R&D hubs. More revenue earned through foreign investments and injection of foreign capital Promoting all these services ensures Singapores economy is stable in downturn of one sector A stable economy ensures sustainable economic development o Hence the strategies overcome the challenges Weighing

Templates on globalisation JunLi, Jamie, Poh Choo, Gillian, Huili 4H - Limited land can be Singapores problem. However, - Singapore optimize land resources to meet our needs, to safeguard land for further development and to maintain the best quality of life - The URA (Urban Redevelopment Authority) carries out strategic planning on the use of Singapores land (e.g. conservation of historic buildings and areas to preserve Singapores rich architectural heritage) - Thus Singapores land can be put into good use for further development - Singapore lacks natural resources (e.g. water) However, - Singapore has overcome water shortage problems by introducing NEWater. In this way, people in Singapore can get ample amount of water and not worry about water shortage. - Singapore also imports non renewable resources (e.g. oil and natural gas) from other countries. Natural gas now accounts for 80 per cent of the electricity generation. - Hence, Singapore is able to overcome scarcity of land and resources problem. - Increased competition among nations Singapore can lose out due to lack of land and resources as investors are attracted to other investment hotspots e.g. India and China as they offer cheaper labour and products lesser economic development cannot deal

Is globalization a boon or a bane? Boon Bane

Templates on globalisation JunLi, Jamie, Poh Choo, Gillian, Huili 4H Increase awareness of foreign culture People around the world become aware of different cultures since they can learn about the history, culture and different ways of life through travelling, surfing the Internet and watching foreign movies. With more understanding of different cultures, people can be more tolerant and accommodating to others. People can also infuse into the culture of the country better. Widening income gap between rich and poor Rapid development in some countries which own most of the manufacturing equipment, but transnational corporations are able to draw investments, skilled people and resources away from the developing countries, and thus, there is an increased volume of international trade which bring a lot of revenue. Developing countries would have loss opportunities to prosper, which can lead to ongoing cycle of poverty. Within a country, there may be tension between the rich and the poor which can result in social problems. Weighing Globalization is more of a boon than a bane as: - Social stability is very important. With lack of understanding of foreign culture, the country may offend the other countries unintentionally and lose their chances of more economic development as diplomatic ties may be ruined may lead to conflict between the countries. - Whereas, the income gap within a country can be solved with governments critical thinking and planning to alleviate the problem - So the impact of understanding foreign cultures is more important than the impact of the widening income gap - Thus globalization is more of a boon than a bane

Globalization is more of a bane than a boon as: - Impact of the widening income gap between rich and poor is greater than the impact of understanding foreign culture - Country already has a problem with developing due to the loss of local talents (brain drain) - Furthermore with possible internal tension caused by citizens, the country can hardly develop may not maintain a competitive edge with other countries economy downfall - While understanding foreign culture is important, it does not cause problems within the country, and so the government can cope with improving the country - Globalization brings more harm than benefits, thus globalization is more of a bane than a boon

Templates on globalisation JunLi, Jamie, Poh Choo, Gillian, Huili 4H Are the strategies to maximize opportunities and overcome challenges of globalization in Singapore effective? Effective More business opportunities for Singapore - Diversifying the economy : A*Star set up, (venturing into biomedical and sciences industry) Attracting TNCs for more high-value added manufacturing activities Regional hub for education and tourism (many overseas universities set up local branches here) (building of MBS and RWS) - Venturing aboad Suzhou Industrial Park in 1994, International Tech Park in Bangalore, India. Singtel in overseas market, with investments in over 20 countries. Singapore government investing in new markets such as Middle East, Africa, Latin America, Central and Eastern Europe - Expanding market reach through economic cooperation Need to establish trade ties with countries around the world to expand market reach Though Free Trade Agreements (FTA) Benefits of FTA : more choice of goods and services, improved service standards with international competition, cost savings (no taxes) , larger market, more profit. Special Economic Zones(SEZ) - rapid economic growth using tax and business incentives to attract foreign investments. - Managing resources efficiently ~ developing people: promoting local entrepreneurship and technopreneurship - amending bankruptcy laws to allow entrepreneurs who failed to start a business again. giving recognition to outstanding Not effective The SMEs do not have much of an impact - make up a large percentage of businesses in the Singapore economy, important providers of jobs. support operations of TNCs by supplying them with components in manufacturing process. - not successful because they face many problems running their businesses not able to compete with big corporations with more resources. do not have expertise in advanced technology to bring their operations up-to-date. family-run, shortage of skilled professionals to manage company. face a small domestic market as many of them do not have capital to venture abroad.

Templates on globalisation JunLi, Jamie, Poh Choo, Gillian, Huili 4H entrepreneurs to inspire more entrepreneurs to achieve greater success. ~ Attracting foreign talent: for manpower, overseas business contacts, thus creates more business opportunities. adds diversity to cosmopolitan Singapore. foreigners with good paper qualifications and specialized skills such can make up for the lack of local expertise. ~ Managing the environment environmental preservation, economic development and social progress are the three pillars of sustainable development. ~ Managing limited land resources Singapore country is small, thus need for proper land planning. high standard facilities for housing, education, transportation, commerce and defense can be developed, thus can sustain its growth. Weighing Strategies to maximize opportunities and overcome challenges of globalization in Singapore are effective because there are now more business opportunities for Singapore. Through diversifying the economy, many foreigners will be attracted to investing in other economic sectors such as education, biomedical industry and tourism. Thus, more revenue can be generated and the economy will rise. By venturing abroad, the Singapore government can have more and larger markets to invest in, thus increasing our business opportunities. When Singapore cooperates economically with the countries through FTAs and SEZs, we expand our market reach and thus create more business opportunities. By managing resources efficiently, we develop our people, attract more foreign talent, manage the environment and limited land Strategies to maximize opportunities and overcome challenges of globalization in Singapore are not effective because the SMEs do not have much of an impact. They face many problems running their businesses, such as not being able to compete with big corporations with more resources, not having the expertise in advanced technology to bring their operations up-to-date, lacking skilled professionals to manage the company and facing a small domestic market as many of them do not have capital to venture abroad. These problems lead to them being overtaken by the more competitive and bigger companies who have the manpower and resources that SMEs lack. On the other hand, SMEs make up a large percentage of businesses in Singapore and are important providers of jobs. Hence if SMEs are not doing well and

Templates on globalisation JunLi, Jamie, Poh Choo, Gillian, Huili 4H resources, and thus, we will have more talented people working with us, and a larger workforce. Also, we will have sustainable development due to good environmental preservation and better use of land for our various needs. Hence, the strategies to maximize opportunities and overcome challenges of globalization in Singapore are effective. are forced to close operations, many Singaporeans will become jobless and thus, this shows that this strategy to maximize opportunities and overcome challenges of globalization in Singapore are not effective. Also, if SMEs, close down, they cannot provide TNCs with components and the TNCs may have to find other sources.

Does Singapore face a threat from other countries?

Face Economic depression in other countries will affect SG A depression is a time when there is a great decrease in business actitives with widespread unemployment When Great Depression hits America, it affected many of her trading partners, including Singapore Singapore was badly affected as she depended on America for its trade. Does not face Have high valued-added manufacturing activities in Singapore help SG remain competitive Singapore will be a centre of technology-intensive, high valued-added manufacturing activities e.g. chemical engineering and pharmaceuticals Venture unto life sciences-study of genetics and development of new medical treatments using gene therapy, new drugs and genetically modified food products. Set up Agency for Science, Technology and research (A*STAR) to do R&D capability A*STAR set up research institutes to undertake research in different areas e.g. Institute of Molecular and Cell Biology established in 1987 to develop and support biomedical R&D capability Attract TNCs to set up high valued-added manufacturing activities here e.g. Seagate: provide jobs and affirm Singapore as manufacturing hub Singapore to be regional hub for education and tourism Leading international universities set up branches here e.g.

Templates on globalisation JunLi, Jamie, Poh Choo, Gillian, Huili 4H Stanford Uni, Shanghai Jiao Tong Uni 2 Integrated Resorts (IRs) to be built in Marina Bay and Sentosa to compete with neighbouring countries for the tourist dollar. How does Singapore not face a threat from other countries? With more high valued-added manufacturing activities in Singapore, it creates more jobs in new fields R&D in various manufacturing and Life Sciences activities will give Singapore competitive edge over neighbouring countries and affirms her position as manufacturing and R&D hubs. More revenue earned through foreign investments and injection of foreign capital Promoting all these services ensures Singapores economy is stable in downturn of one sector A stable economy ensures sustainable economic development o Hence, Singapore does not face a threat from other countries

How does Singapore face a threat from other countries? Decrease in trade and business o Singapore , which was closely involved in the trading of tin and rubber, was affected as the demand for certain commodities including tin and rubber dropped o Because Singapores economy depended largely on overseas trade, the depression caused companies in Singapore to suffer losses. o Singapores total trade with the West dropped, lesser revenue was earned. High rates of unemployment o Business sentiments were so poor that many businessmen, particularly those who depended on overseas trade, lost their wealth or became bankrupt. o Businessmen cut expenses by retrenching workers. o Result in widespread unemployment and hardship. o It was extremely difficult for the unemployed to find new jobs as there were limited jobs available. Weighing

I think Singapore does not face a threat from other countries. Local entrepreneurs will become innovative and take risks in business ventures to compete with foreign countries. Upgraded skilled employees will be able to handle new job demands, adapt to changing environment in globalizing world. Employees become more efficient, knowledgeable and talented to drive industries, giving Singapore competitive edge.

Templates on globalisation JunLi, Jamie, Poh Choo, Gillian, Huili 4H

Furthermore Singapore would not have suffered much from the economic depression in other countries. FTAs enable Singapore to have more choice in goods and services. With no taxes, Singapore can sell goods in more countries and earn more profits Collaboration enables foreign countries to invest, creating more jobs Hence, Singapore would not face a threat from other countries.