Economics of Competition': A Study of Low-Cost Manufacturing Enclaves in Batam Island, Indonesia

• Main Authors: YEOH, Caroline, CHUA, Feng Hao, TAN, Sylvie
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2006
• Subjects: Industrial parks; Singapore; Batam; Indonesia; Asian Studies; International Business
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/2892; https://ink.library.smu.edu.sg/context/lkcsb_research/article/3891/viewcontent/auto_convert.pdf
• Institution: Singapore Management University

Singapore’s transborder industrialization projects in China and India have received much attention. This regionalization initiative was intended to set in place a strategic configuration for the city-state to restructure its domestic industries and, pari passu, retain important linkages with contiguous, low-cost environments. Our study reports on Singapore’s pioneering, albeit lesser-known, project - Batamindo Industrial Park – in neighboring Batam Island, Indonesia, and finds that the strategic intent of this policy gambit remains stymied by non-economic, socio-political complexities in the host environment, and the economics of competition from other industrial estates in the vicinity of this prototype, remains to be addressed.