The State and Industrial Restructuring: A Comparison of the Aerospace Industry in Indonesia and Singapore

• Main Authors: Hill, Hal, PANG, Eng Fong
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 1988
• Subjects: Business
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/342; https://www.jstor.org/stable/25770203
• Institution: Singapore Management University

The small aerospace industry of Southeast Asia has been growing rapidly, principally in Indonesia and Singapore. The measures adopted to promote the industry in these two countries could hardly be more different. The Indonesian Government has accorded high priority to full-scale assembly and manufacture of aircraft, aided by large state subsidies and a heavily protectionist trade regime. By contrast, the Singapore strategy has been to develop the island as an aviation support centre, emphasizing in particular the service-related activities deriving from the country's location and its competitive outward-looking commercial sector. These alternative approaches are examined and their relative merits assessed.