Singapore’s Future as a NIC
Although it was evident before 1984 that the course of the ‘Second Industrial Revolution’ was failing to match official expectations, Singapore’s policy-makers were not overly concerned. This view changed, however, with the advent of a dramatic economic downturn in 1985. The fact that this downturn followed on the heels of a sizeable electoral swing against the PAP in the December 1984 general election was probably a contributing factor in the suddenness of the policy response. The potential that adverse economic conditions created for further opposition gains was not lost on the PAP. The comprehensiveness of the review also indicated that the downturn was not regarded as a temporary phenomenon but as part of longterm structural change. As a result the major assumptions underlying the ‘Second Industrial Revolution’ strategy, and indeed Singapore’s future as a NIC, were subjected to scrutiny. In what transpired, the role of industrialisation in Singapore’s future development strategy and the means by which industrialisation would be promoted were re-assessed. Though at the time of writing this re-assessment has only just taken concrete policy shape, the overriding theme to the government’s measures is clear: the manufacturing sector is no longer expected to fulfil the role originally envisaged under the ‘Second Industrial Revolution’.
KeywordsDirect Foreign Investment Manufacturing Sector Industrial Revolution International Capital Eastern Economic Review
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