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SINGAPORE

SINGAPORE. FRANCIS PIRON, Ph.D., 2013. BASIC FACTS. ONE OF THE FASTEST GROWING ECONOMIES FROM 3d TO 1 st WORLD ECONOMY GOVT. BEHAVES AS AN ENTREPRENEUR PATERNALISTIC APPROACH – NANNY STATE HEAVY DEPENDENCE ON ELECTRONIC SECTOR

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SINGAPORE

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  1. SINGAPORE FRANCIS PIRON, Ph.D., 2013

  2. BASIC FACTS • ONE OF THE FASTEST GROWING ECONOMIES • FROM 3d TO 1st WORLD ECONOMY • GOVT. BEHAVES AS AN ENTREPRENEUR • PATERNALISTIC APPROACH – NANNY STATE • HEAVY DEPENDENCE ON ELECTRONIC SECTOR • LACK OF ENTREPRENEURIAL, RISK-TAKING & CREATIVE SKILLS AMONG THE PEOPLE • OVERWHELMINGLY CHINESE

  3. LOCAL & EXTERNAL FORCES INFLUENCING THE MGMT CONTEXT OF SINGAPORE • FORCES OF HERITAGE - LOCAL & REGIONAL INFLUENCES • UNIQUE HISTORY & GEOGRAPHY

  4. BRIEF HISTORY • LONG HISTORY AS A TRADING POST • SMALL ISLAND WITH LTD NATURAL RESOURCES => NEED FOR PRAGMATIC & OUTWARD ORIENTATION, FLEXIBILITY, QUICK TO ADAPT • EARLY CHINESE INFLUENCE => ARRIVAL OF CONFUCIANISM & BUDDHISM • LEE KUAN YEW ELECTED PM IN 1959 (FOR 31 YEARS); INDEPENDENCE IN 1965 • LEE KUAN YEW, THEN SENIOR MINISTER & NOW MENTOR MINISTER

  5. SOCIO-CULTURAL ISSUES • HISTORIC ETHNIC DIVERSITY + 250 YEARS OF BRITISH COLONIAL RULE • CHRISTIANITY IS ASSOCIATED WITH THE BETTER EDUCATED CHINESE WHO TEND TO SPEAK ENGLISH AT HOME • ECONOMIC DISPARITY ASSOCIATED WITH ETHNIC & RELIGIOUS AFFILIATION • 72% CHINESE • MODERN MGMT SYSTEM, STRUCTURES & CULTURE BASED ON CONFUCIAN HIGH WORK ETHICS

  6. SOCIO-CULTURAL ISSUES • SINGAPOREAN GOVERNANCE & DEVELOPMENT MODEL: • COLLECTIVE ENTREPRENEURIAL SPIRIT, • EMPHASIS ON EDUCATION, • HIGH SAVINGS RATE, • POSITIVE OVT. INVOLVEMENT IN EXPORT EXPANSION, • DYNAMIC COMMUNITY SPIRIT, • LOYALTY TO EMPLOYERS • BEHAVIOR SHAPING & SOCIAL ENGINEERING

  7. POLITICAL & ECONOMIC MANAGEMENT FRAMEWORK • PRO-BUSINESS GOVT DEVT = SINGAPORE INC. • PAP (PEOPLE’S ACTION PARTY), IN POWER SINCE INDEPENDENCE, IMPLEMENTED STRATEGY TO TRAIN BRIGHTEST FOR TOP-PAYING GOVT. CAREERS • WITH NO LOCAL ENTREPRENEURS, GOVT BECAME THE ENTREPRENEURIAL LEADER • PRO-BUSINESS ORIENTATION IS PRESENTED AS THE ONLY SENSICAL APPROACH

  8. POLITICAL & ECONOMIC MANAGEMENT FRAMEWORK • CONFUCIAN IDEOLOGY UNDERPINS THE GOVT’S PATERNALISTIC AND COERCIVE MGMT: • IDENTIFICATION OF SOCIALLY (UN)DESIRABLE VALUES, • DEFINITIONS OF ETHNICITY & ETHNIC INTER-RELATIONSHIPS, • ENGLISH AS “LINGUA FRANCA,” • ENFORCEMENT OF SUBSIDIZED PUBLIC HOUSING, • COMPULSORY NATIONAL SERVICE, • PROMOTION OF THE VALUE OF EDUCATION, • COMPULSORY SAVINGS RATES, • WORKPLACE & LABOR LAWS, • SIGNIFICANT RESTRICTIONS ON PUBLIC & SOCIAL CAMPAIGNS

  9. THE MESO-SOCIETAL LEVEL: THE MGMT OF SINGAPORE INSTITUTIONAL INFRASTRUCTURE • GOVT LED APPROACH TO INDUSTRIAL INFRASTRUCTURE: • UNIQUE CHARACTERISTICS OF SINGAPORE’S ENTREPRENEURIAL CULTURE • SUCCESS OF PAP => REMARKABLE PER CAPITA INCOME GROWTH • RECENT DOWNTURN REVEALED 2 MAJOR FLAWS: • UNHEALTHY RELIANCE ON ELECTRONICS, • LACK OF ENTREPRENEURIAL CULTURE

  10. THE MESO-SOCIETAL LEVEL: THE MGMT OF SINGAPORE INSTITUTIONAL INFRASTRUCTURE • GOVT LED APPROACH TO INDUSTRIAL INFRASTRUCTURE: • HISTORICAL DEVT. OF GOVT-LED COMPANIES (GLC) • 20% OR MORE OWNED BY GOVT. • NO SIGNIFICANT INDUSTRIAL/MANUFACTURING STRUCTURE AT INDEPENDENCE • SHORTAGE OF ENTREPRENEURS WITH CAPITAL, INTEREST TO INDUSTRIALIZE SINGAPORE • NEED FOR GOVT TO JUMPSTART INDUSTRIALIZATION, OFTEN WITH FOREIGN JV PARTNERS • 1974 CREATION OF TEMASEK HOLDINGS

  11. THE MESO-SOCIETAL LEVEL: THE MGMT OF SINGAPORE INSTITUTIONAL INFRASTRUCTURE • STATE ENTREPRENEURSHIP: • GLCs OPERATE A FULL- OR FOR-PROFIT ENTITIES • MATCHES CONFUCIAN-BASED COLLECTIVE ENTRE- • PRENEURIAL SPIRIT & HIGH WORK ETHIC VALUES • PRIVATE ENTREPRENEURSHIP WAS DISCOURAGED • “THE ROLE OF THE STATE IN BUSINESS HAS BECOME AT BEST UNNECESSARY AND AT WORST DYSFUNCTIONAL” • “THE SINGAPORE GOVT. HAS BEEN VERY EFFECTIVE IN ERADICATING ENTREPRENEURS” • GLCs MAKE UP 41% OF STRAITS TIMES INDEX • POOR GLC RETURNS IN PAST DECADE

  12. THE MESO-SOCIETAL LEVEL: THE MGMT OF SINGAPORE INSTITUTIONAL INFRASTRUCTURE • BARRIERS TO CREATIVITY: • PERVASIVE INFLUENCE OF GLCs CROWDED OUT PRIVATE INVESTMENT & HINDERED ENTREPRENEURS • GLC EXECUTIVES ARE OFTEN RELATED TO SENIOR GOVT. OFFICIALS OR FORMER GOVT. OFFICIALS AND SIT ON SEVERAL BOARDS => MAINTAIN ATMOSPHERE • SINCE 2002 GOVT. DIVESTMENT IN NON-STRATEGIC INDUSTRIES • HIRED FOREIGN MANAGERS, BUT THOSE SOON RESIGNED … ARE OUTSIDERS SUITABLE FOR SINGAPORE INC.?

  13. THE MESO-SOCIETAL LEVEL: THE MGMT OF SINGAPORE INSTITUTIONAL INFRASTRUCTURE • RISK-AVERSE CORPORATE & COMMUNITY MGMT CULTURE: • PAP HAS PLAYED KEY ROLE IN SHAPING POLITICAL, ECONOMIC & CULTURAL NATURE OF SINGAPORE MANAGERIAL STYLE • PAP ADOPTS ASSERTIVE & PATERNALISTIC STYLE • ‘NANNYING” LEADERSHIP => SINGAPOREANS LOOK TO GOVT FOR GUIDANCE • SINGAPOREANS ARE RISK AVERSE => LOW ENTREPRENEURIAL CULTURE, TOLERANCE FOR FAILURE • 2 SECTORS CONTRIBUTE TO RISK-AVERSE CULTURE • CPF • EDUCATION SYSTEM

  14. THE MESO-SOCIETAL LEVEL: THE MGMT OF SINGAPORE INSTITUTIONAL INFRASTRUCTURE • ROLE OF THE CENTRAL PROVIDENT FUND: • HIGH SAVINGS RATE • 20% FROM SALARY + 20% FROM EPLOYER • TOWARDS RETIREMENT, HEALTHCARE, UNIVERSITY EDUCATION, FINANCING OF HOME OWNERSHIP, ETC. • REWARDS EMPLOYEES AND PENALIZES ENTREPRENEURS • POOL OF SAVINGS INVESTED OVERSEAS

  15. THE MESO-SOCIETAL LEVEL: THE MGMT OF SINGAPORE INSTITUTIONAL INFRASTRUCTURE • THE EDUCATIONAL SYSTEM: • PROMINENCE OF MATH & SCIENCE, CURRICULA EMPHASIS THAT DISCOURAGES FREE THINKING & INSTILLS FEAR OF FAILURE • EMPHASIS ON SYLLABUS CONTENT, DETAILS, GOOD GRADES THROUGH ROTE LEARNING • CONTEMPORARY CONFUCIAN-BASED METHODS ARE INAPPROPRIATE TO EARNING SKILLS FOR KNOWLEDGE-BASED ECONOMY • EDUCATION REFORM IS PRIORITY TO INCLUDE CREATIVITY, BUT CAREFUL NOT TO BUILD INTELLECTUAL INDEPENDENCE • CULTURAL EMPHASIS ON SPIRIT OF COLLECTIVE ENTREPRENEURSHIP & PROFESSIONAL OBEDIENCE

  16. THE MICRO-ORGANIZATIONAL LEVEL: CRITICAL TRADITIONAL, TRANSITIONAL & TRANSFORMATIONAL ISSUES IN SINGAPORE MGMT • 2001 DOWNTURN HAS EXPOSED SINGAPORE’S WEAKNESSES • GOVT. ACKOWLEDGES ITS NEED TO CHANGE TO RESPOND TO 21st CENTURY CHANGES • INVESTMENT IN INDUSTRY DIVERSIFICATION • CHINESE SINGAPOREANS ARE INVESTING IN CHINA • FUTURE OF SINGAPORE GOVERNANCE & MGMT STRATEGY IS CLOSELY TIED TO CHINA’S DEVT • GOVT ELITE HAS WESTERN EDUCATION & ASIAN ENTREPENEURIAL APPROACH • NEED FOR & SLOW RESPONSE TO LIBERALIZATION

  17. CONTEMPORARY MICRO-LEVEL APPROACHES FOR MANAGING THE ENTREPRENEURIAL CULTURE OF SINGAPORE • GOVT RECOGNIZES NEED TO TRANSFORM EDUCATION SYSTEM & “NANNY” STATE MANAGERIAL APPROACH • WITH THE PRESENCE OF MNCs, EXPOSURE TO INTERNATIONALIZED MGMT SYSTEM => LOCALS FACE FOREIGN MANAGERIAL VALUES & PRACTICES => NEED TO CHANGE: • LEADERSHIP, • DECISION-MAKING, • COMMUNICATION STYLES, • MOTIVATION, • TEAM & INDIVIDUAL PROBLEM-SOLVING ABILITY

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