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SINGAPORE'S GLOBALIZATION STRATEGY*
For Singapore, it is not a question of whether to globalize, but how to globalize. While Singapore may be handicapped by its small size and lack of natural resources, it seems that these drawbacks could be less of a problem as the world economy becomes more sophisticated. Physical size and natural resources will become less important for economic growth when compared with human capital, information, and knowledge in the future. To build the city-state, the Singaporean government adopted a number of bold strategies to develop its economy, making it a leader among the newly industrialized nations involved in the region. Singapore's export-oriented industrialization evolved in several stages and had to overcome obstacles along the way. Its success was dependent on enlightened government policy in cultivating good relations with multinational corporations and cooperation between the government-run and private enterprises. A review of the economy in the last decade gave birth to the Strategic Economic Plan of 1991. Besides underlining the importance of the manufacturing and service sectors, the plan also emphasized the regionalization and globalization of the economy. While the Asian economic crisis has affected Singapore's development, it has not changed Singapore's determination to globalize and liberalize its economy.
Introduction
When statehood was thrust upon Singapore in 1965, the primary challenge for the newly independent city-state was economic survival. Its leaders also knew very well that a sound economic footing was the foundation of a viable nation. However, it was obvious that Singapore was greatly handicapped by its small population and hence small domestic market. Moreover, it does not have natural resources and a hinterland. The major asset of the new Republic was its strategic position. As the major port between the Indian and Pacific Oceans and situated next to the Straits of Malacca, Singapore had developed itself into a respectable entrepot. Apparently, the leaders of Singapore were not satisfied with the traditional role of a middleman in the regional economy. To build a nation, Singapore adopted an export-oriented industrialization strategy. The policy option chosen was to plug the nation into the global economic system. Its globalization strategy was guided basically by two features: the promotion of foreign investments in Singapore and the continuation of a free trade policy that would...