Achieving Growth through Corporate Partnerships and Joint Ventures: Will Singapore's Strategic Leap into the Region Work?

• Main Authors: ZUTSHI, Ravinder K., TAN, Wee Liang
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2000
• Subjects: Economic Development; Singapore; International Joint Ventures; Alliances; Confucian Ethics; Asian Studies; Entrepreneurial and Small Business Operations
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/246; https://ink.library.smu.edu.sg/context/lkcsb_research/article/1245/viewcontent/auto_convert.pdf
• Institution: Singapore Management University

One of the characteristic features of the East Asian economic development strategy has been the interventionist role of the government in the economic sphere (Amsden 1989; Kwon 1994; Wade 1990; Zutshi and Gibbons 1998). Governments in East Asia have traditionally, worked closely with the private sector. As a result unique business systems embedded in networks and alliances have evolved in countries like Taiwan, Japan, Korea and Singapore (Hamilton and Biggard 1988). Singapore has attempted to extend this model of strategic cooperation beyond its borders into the region. Schein (1996) identifies a number of major development eras in the evolution of Singapore. In 1965 attracting MNCs (multinational corporations), and thus foreign direct investment, was critical to its export-led growth strategy. But after the recession of 1987 the emphasis shifted to building an external wing for the Singapore economy. By 1990 the Corporist State had taken definitive steps toward forging strong economic linkages with the neighboring countries. Singapore foreign direct investments in 1995 were to the tune of S$ 48.5 billion of which almost 60% were invested in the region (Department of Statistics, 1996). Apart from direct investments Singapore has also partnered with the industrial development authorities in the region to promote industrialization. It set up a growth triangle with Malaysia and Indonesia and forged a number of joint ventures with local authorities in China, India, Vietnam and Myanmar in the development of industrial estates.