Role of Transnational Corporations in Transfer of Technology to Singapore

Abstract

The transformation of Singapore from a trading economy to one of the newly industrialising countries (NICs) owes much to its policies towards the transnational enterprises or the multinational corporations (MNCs). As Singapore is a small island with no natural resources, the reliance on MNCs is necessary for economic survival. The MNCs have brought with them the much-needed capital, modern technology and managerial skills. They have also created employment opportunities for the local labour force and access to world markets through their distribution network. However, the mere presence of MNCs is not sufficient to provide the impetus for fast economic growth. It is the transfer of technology to the local industries that provides a solid foundation for building a modern industrial economy.