International diversification of large business groups in Singapore.

• Main Authors: Chua, Shin Ling., Tan, Grace Ya Hui., Loh, Lee Peng.
• Other Authors: Tsui-Auch, Lai Si
• Format: Final Year Project
• Language: English
• Published: 2009
• Subjects: DRNTU::Business::International business
• Online Access: http://hdl.handle.net/10356/15055
• Institution: Nanyang Technological University

The 1997 Asian Financial Crisis has greatly caused undesirable impact on the global economy, including Singapore. The lesson to be learnt from the crisis is the risk of concentrating business in one region. In order to minimise such risks faced by the corporate sectors in future, the Singapore government has strongly urged local companies to diversify internationally. Government-linked corporations (GLCs) are the key mechanisms for government intervention in the “market-driven guided economy” of Singapore. Family-controlled companies (FCCs), constituting the majority in the top public-listed companies in the Singapore Stock Exchange (SGX), constitute to another business group that drives Singapore’s economy. Therefore, these two types of corporations are of great significance to understand the local corporate sectors’ strategies towards international diversification. Our main motivation for doing this study is to find out the reasons that drive local companies to diversify internationally and whether the government has played any part in their strategies. It is important to study the success of the government’s initiatives during the last Asian financial crisis. Singapore can then apply the lessons learnt on the next major recession so as to ensure Singapore’s sustainable competitiveness. Due to the rising economies of China and India in recent years, these two regions are singled out to measure the local companies’ diversification strategies and patterns towards these two emerging markets. Therefore, the four major areas to be analysed for this paper are regions outside Singapore but within Asia, beyond Asia, China and India. Due to the rising economies of China and India in recent years, these two regions are singled out to measure the local companies’ diversification strategies and patterns towards these two emerging markets. Therefore, the four major areas to be analysed for this paper are regions outside Singapore but within Asia, beyond Asia, China and India.