singapore - top among competitiveness
TRANSCRIPT
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GIBS
12 Pillars of Global
Competitiveness:SingaporeDr. SUNITA JINDAL
ANUJ KAUL(287), NIPUN CHAWLA(278)
4/3/2013
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12- Pillars of Global Competitiveness: Singapore inside Review
Singapore retains its place at 2nd position as a result of an outstanding performance across the entire
Index. The country features in the top 3 in seven of the 12 categories of the Index and appears in the top
10 of three others. Its public and private institutions are rated as the best in the world for the fifth year
in a row. It also ranks 1st for the efficiency of its goods and labor markets, and places 2nd in terms offinancial market development. Singapore also has world-class infrastructure (2nd), with excellent roads,
ports, and air transport facilities. In addition, the countrys competitiveness is reinforced by a strong
focus on education, which has translated into a steady improvement in the higher education and
training pillar (2nd) in recent years, thus providing individuals with the skills needed for a rapidly
changing global economy.
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1. Singapore is attuned to the needs of businesses and the need to protect invention andinnovation Singapore is known for integrity, quality, reliability, productivity, rule of law, and
enforcement of intellectual property rights. These assets are essential in the knowledge
economy. Singapore keeps its tax rates and tax laws competitive and takes a strategic, holistic
approach towards stewardship of key pillars of the economy, such as petrochemicals,
electronics, and clean energy. Most recently, it has mounted an initiative called Future
Singapore. This is designed to develop and test bed new ideas and solutions in the areas of
urban living, wellness, ageing and healthcare, and lifestyle products and services. As a preferred
location for innovation, Singapore has nurtured a robust intellectual property (IP) regime .The
country has placed a great deal of commitment into developing a strong domestic regulatory
framework to protect IP rights. It is currently rated the best place in Asia and 7th in the world for
IP rights protection in the IMD World Competitiveness Report 2011. Similarly, the World
Economic Forums Global Competitiveness Report 2011-2012 ranks the island as having the best
IP protection in Asia, and the second best in the world. Indeed, a consistently reliable IP
environment was what spurred the World Intellectual Property Office (WIPO) in 2009 to set up
its first Asian regional office here. And because of its pro-IP stance, more than 30 leading
biomedical sciences companies have established regional headquarters here as well.
2. The worlds top labour force sustains Singapores leadership position in key knowledge-intensive industries The multi-cultural Singaporean workforce is highly educated, highly
motivated and highly productive. It is also proficient in English the language of international
business. Singapore has a large base of engineering talent, with the number of engineers in
universities and polytechnics expanding steadily each year, in addition to the sizeable pool of
skilled technicians. An open immigration policy has served to enhance Singapores talent pool.
This gives companies the opportunity to source for the best personnel from anywhere in the
world.
In addition, a vast array of training and scholarship programmes are frequently developed by
the government in tandem with industry partners and educational establishments. Such
initiatives ensure that the workforce is future-ready. All this has helped produce a labour force
that is ranked No.1 in the world over the last 30 years. (Business Environment Risk Intelligence's
2008 Labour Force Evaluation Measure report).
Rapid business innovation requires world-class R&D facilities and expertise. The Agency for
Science, Technology and Research (A*STAR) ensures that Singapore has both in ample supply.
With twelve research centres dedicated to a multitude of technological disciplines, Singapore
attracts a world class community of researchers and specialists from the US, Europe and Asia
Pacific region.
In the last decade, Singapore has successfully grown its R&D base, drawn top scientific and
creative talent and nurtured R&D collaborations between the public sector and private
enterprise. Today, Singapore holds global leadership positions in areas of manufacturing such as
electronics and petrochemicals. The city-state remains an attractive base for complex
manufacturing activities, in tandem with its move towards a more knowledge-centric and
research-based economy. This emphasis on innovation and capital-intensive activities and a
globalised workforce has shaped Singapore into a city-state where Chinese and Indian
companies can internationalise, where American and European companies make their entry into
Asia, and where views on the future of this dynamic and fast-evolving region can be forged.
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3. Global transportation hub with the most extensive network of trade agreements in AsiaSingapore has built on its advantageous geographical location to become one of the worlds top
transportation hubs for sea and air cargo. Singapores container ports are the busiest in the
world. They offer a choice of 200 shipping lines with links to some 600 ports in 123 countries.
Changi International Airport is linked to some 200 cities in 60 countries, with about 5,400 weekly
flights, providing convenience and effective connectivity for passengers and cargo. The Changi
Airfreight Centre is a 24-hour, one-stop hub for the storing, moving and repackaging of goods
without the need for documentation and custom duties. This has drawn some 6,000 logistics
providers to Singapore, including 21 of the world's top 25 third-party logistics providers. Getting
around the island is effortless with the highly-efficient Mass Rapid Transit system, and bus and
taxi services. On the infocomms front, the countrys broadband network reaches 99 per cent of
the population. International and regional connectivity now stands at 27.6 Tbps to more than
100 countries. Companies here have the necessary land, air, sea, and telecommunications
linkages necessary to move freight and services anywhere in the world, whenever they are
needed.
Singapores extensive trade links provide companies with greater market connectivity through
the reduction of tariff and non-tariff barriers. The Republic currently has the most extensivenetwork of free trade agreements (FTAs) in Asia. Agreements have been signed with key
economies such as US, Japan, Australia, New Zealand, members of the European Free Trade
Association, Jordan, China, Chile, South Korea, India and Panama. Negotiations are in progress
for FTAs with Middle East and South Asian economies. On top of this, Singapore has signed 35
investment guarantee agreements (IGAs), designed to help protect investments made by
Singapore-based companies in other countries against non-commercial risks.
4. Asias best location to work, live and playSingapore is a cosmopolitan country at the crossroads of Asia where people from the region feel
right at home and those from beyond feel welcome. In fact, one in three persons here comes
from abroad, constantly adding to the nation's unique heritage blend. Today, the population is arich mix of different cultures, lifestyles and religions co-existing harmoniously. Being a
consistent top performer in Mercer's Quality of Living surveys over the years, and the top-
ranked Asian city in the 2011 survey, Singapore has taken the work-live-play approach very
much to heart.
The city-state is safe and orderly. Recognised as one of the cleanest and greenest cities in the
world, its public transport system and healthcare services are world-class. This provides a
dynamic business environment, providing plenty of work opportunities locally and overseas.
In fact, there are numerous schools catering to the education needs of expatriate children while
its local schooling system has achieved academic distinction. Its one of the push factors that
make Singapore a great place to raise a family.
Most importantly, the "play" aspect is not forgotten in the Republic. The arts and culture scene
is thriving and growing. From a host of acclaimed museums, such as the ArtScience Museum
located at the luxurious Marina Bay district and countless theatre and musical productions at
world-class venues like The Esplanade Theatres on the Bay.
Singapore is also a gastronomic draw, with a lively dining and entertainment scene that offers
some of the best cuisine in Asia, as well as unique street food. The warm, sunny weather makes
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all-year-round water and outdoor sports possible. There are a wide variety of well-tended green
spaces and exercise facilities such as the East Coast Park and the Botanical Gardens for
relaxation and fun. Singapore is also ploughing resources into state-of-the-art sporting facilities
such as the Sports Hub in Kallang, which will be ready in 2014.
Home for BusinessIt is about deeply rooting companies in Singapore and being their home away from home.
Asias growth story be it China, India or ASEAN will increasingly shape global trade and
investment flows. As manufacturing and service capacity shifts to Asia, coupled with the influx
of engineering talent, companies increasingly turn their focus to Asia.
Singapore can then be the ideal location for companies to locate some of their key decision
makers to feel the pulse, spot opportunities and leverage the network of relationships in the
region. Companies find in Singapore a stable and trusted base where they can exploit their
knowledge and IP assets, undertake key activities which give them a competitive advantage, as
well as drive their growth from Asia.
At the same time, Singapores global connectivity as well as the marketplace of thought and
perspective it offers makes it an ideal neutral base from which Asian companies can expand
their presence worldwide.
Home for InnovationIt is about leveraging Singapores strengths in systems integration and shifting the focus from
sourcing solutions to co-creating solutions with industry partners. The global trends of
urbanisation, ageing and rising affluence are creating demand for new products and services
solutions which Singapore itself needs. Working together with partners from both the private
and public sectors, companies can tap on Singapore as a living laboratory to collaborativelyconceptualise, co-create and test-bed new solutions for commercialisation in Asia and globally.
In the process, the people of Singapore will enjoy greater quality of life with easy access to
tomorrows leading edge solutions today.
The collaboration between PUB Singapores national water agency and Toray Industries,
Inc. is one of the first fruits of this initiative. The collaboration will see the two parties working
to develop water treatment-related technologies and products that will help in coping with the
anticipated global water shortage.
In addition, Changi General Hospital has partnered Intel to test-bed the Mobile Clinical
Assistant, a lightweight mobile device that provides information on patients conditions and
test results to caregivers who are on the move.
Home for TalentIt is about positioning the country as a hub where talent is harnessed and developed to drive
business and innovation in Asia. Already a city with one of the highest quality of living
standards in the world1, Singapore continues to step up efforts to attract, develop and retain
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talent. Many international names have responded favourably, by setting up shop on the
islands friendly, safe shores.
For example, Lenovo launched a digital and social media centre of excellence, while social
media giants like LinkedIn and Facebook have set up their regional headquarters here. Joining
the bandwagon are renowned firms Lucasfilm Limited and DigiPen Institute of Technology
global leaders in the digital industry.
Singapore has also built herself up as the education hub of the region. One good example is the
global consumer goods giant, Unilever. Named Unilever Four Acres Singapore, the global
leadership development centre is Unilevers first corporate university in Asia. With Singapore
as its base, Unilever Four Acres Singapore will attract and groom future leaders to grow its
business in the desired markets.
In addition to the talent development belt, leading education institutions such as the Human
Capital Leadership Institute, INSEAD Asia campus and the University of Chicago Booth School of
Business have also chosen Singapore as their control tower for talent in Asia.
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12 Pillars of Global Competitiveness: Singapore
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Reasons why the Singapore is 2nd
top most competitive country
1. Institutions :
2. Infrastructure:
Singapore is well-served by air, sea and telecommunications connectivity. In telecommunications
connectivity, Singapore has a nationwide broadband network infrastructure, sufficient for your every
business need. As one of the world's busiest port, Singapore is the hub for about 400 shipping lines to
more than 700 ports worldwide. Besides having outstanding seaport facilities, the Singapore Changi
Airport is also a leading air hub renowned worldwide for its efficiency. Its quality infrastructure, skilled
workforce and excellent service in cargo handling have won high acclaim from its users. The airport has
garnered a total of 16 awards so far in the year 2002.
Our excellent connectivity, strategic location, world-class infrastructure and congregation of global
industry experts and professionals offer business executives and business event organisers opportunities
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for business and knowledge exchange and the ease and convenience of doing business or organising an
event. Singapores excellent air links, network readiness and trade links with key economies connect
Singapore to the world, offering a truly international market for the exchange of business opportunities,
ideas and products.
Good telecommunications networkSingapore is one of the most competitive telecommunications hubs in the Asia Pacific. This is further
enhanced by its recent liberalisation of the telecommunication industry in early 2000.
TransportationTravelling around Singapore is a cinch! An efficient public transportation network of taxis, buses and the
modern Mass Rapid Transit (MRT) rail system ensures that getting from point A to point B is hassle-free
and extremely affordable.
Financial System
Singapore is also well-plugged into the international financial system. It is the 4th largest foreign
exchange trading centre in the world, the 5th largest trader in derivatives and the 9th largest offshore
lending centre. The Singapore Exchange (SGX) is recognised as a leading stock market in Asia and one of
the world's leading derivatives exchanges.
3. Macro-environment:
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According to the Economist Intelligence Unit, Country Forecasts Report in December 2011, the country
was ranked the most attractive as an investment location, both regionally and globally. Factors taken
into consideration for ranking purposes were supportive government policies, attractive labour market
conditions, a sound infrastructure and financing efficiency.
4. Health and primary education:
Singapore's education system has been described as "world-leading" and in 2010 was among those
picked out for commendation by the British education minister Michael Gove. With education made
compulsory, Singapore has a 96.1% literacy rate for the year 2011.
5. Higher Education and Training:
Singapore has also built herself up as the education hub of the region. One good example is the global
consumer goods giant, Unilever. Named Unilever Four Acres Singapore, the global leadership
development centre is Unilevers first corporate university in Asia. With Singapore as its base, Unilever
Four Acres Singapore will attract and groom future leaders to grow its business in the desired markets.
In addition to the talent development belt, leading education institutions such as the Human Capital
Leadership Institute, INSEAD Asia campus and the University Of Chicago Booth School Of Business havealso chosen Singapore as their control tower for talent in Asia
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6. Goods Market Efficiency:
According to the Globalisation Index 2012, Singapore came in after Hong Kong and Ireland as the
country preferred for foreign trade and investment. A number of factors have contributed to this
achievement, namely the countrys strategic geographic location, connected networks with the rest of
the world, strong legal system and attractive tax system. In its BERI Report 2011-II (August 2011), US-
based research institute Business Environment Risk Intelligence (BERI) ranked Singapore first out of 50
major investment destinations in a ranking that assesses operations, politics and foreign exchange. With
no restrictions on the repatriation of profits and the import of capital, along with the most favourable
operating conditions and strong diplomatic ties, Singapores stable political and economic climate
creates an ideal environment to invest in.
7. Labour Market Efficiency:
Based on the Business Environment Risk Intelligence (BERI) Report 2011-I, Singapore enjoys the highest
ranking for labour force in terms of workers productivity and general overall attitude; as displayed by
superior business performances with advanced technology and low labour unit costs in relation to the
value of goods and services produced.
According to the IMD World Competitiveness Yearbook in 2011, Singapores workforce is highly
motivated; making for one of the most productive labour forces in the region. This ranking is due to
effective company policies in place, a generally conducive working environment and attractive living
conditions in the country. The IMD World Competitiveness Yearbook in 2011 states that Singapore has
one of the most skilled labour pools in the region due to sound education policies, the ready availability
of training programmes and attractive incentives for local and foreign talent. The mind-set of
Singaporean talent is generally positive and makes for a productive working environment. According to
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the Global Competitiveness Report 2011 2012 by the World Economic Forum, Singapore enjoys better
working conditions and higher rates of productivity due to more open communication channels and
camaraderie between employee and employer. s found in the Global Competitiveness Report 2011
2012 by the World Economic Forum, Singapores labour regulations are one of the most effective and
flexible in Asia when it comes to hiring talent as compared to the rest of its neighbours. These include an
attractive tax system and effective manpower regulations.
8. Financial Market Development :
In its BERI Report 2011-II (August 2011), US-based research institute Business Environment Risk
Intelligence (BERI) ranked Singapore first out of 50 major investment destinations in a ranking that
assesses operations, politics and foreign exchange. With no restrictions on the repatriation of profits
and the import of capital, along with the most favourable operating conditions and strong diplomatic
ties, Singapores stable political and economic climate creates an ideal environment to invest in.
Investment friendly climate:
FDI inflow in Singapore increased at a CAGR of 23.4 percent between 2005 and 2011. Government
provides tax incentives, depreciation schemes, favorable loan conditions, and high-quality industrial
estate to attract investment.
Manufacturing of electronics, pharmaceuticals, and petroleum remain primary magnets for
investment. Government is also trying to attract MNC investment in high-technology sectors while trying
to expand the countrys role as a global financial center.
9. Technology readiness :
Residential and Corporate wired broadband subscription for the nation.
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10. Market Size:
According to the Globalisation Index 2012, Singapore came in after Hong Kong and Ireland as thecountry preferred for foreign trade and investment. A number of factors have contributed to this
achievement, namely the countrys strategic geographic location, connected networks with the rest of
the world, strong legal system and attractive tax system.
11. Business Sophistication:
12. Innovation:
In its Global Competitiveness Report 2011 2012, the World Economic Forum has ranked Singapore as
having the best IP protection based on the infrastructure and incentives put in place by the government
to encourage innovation by existing and emerging industries.
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