Singapore and Globalization
From AEC (ASEAN Economic Community) and other nations’ latest actions, including Singapore, it is evident that each country is being affected by the latest political and economic actions from the global arena. Recent situations, such as the newly elected US President Donald Trump decision to have the US out from the Trans-Pacific Partnership (TPP) and the exit of the UK from the EU, have resulted many countries to move away from globalization to protectionism.
With the impact of external decisions, according to the newest report by the Committee on the Future Economy (CFE), the launch of an anti-globalization trend will weaken international trade. Consequently, a weaker international trade will harm all economies, especially small economies such as Singapore.
Despite this, based on the report by the CFE, Singapore’s future action will remain on globalization. By focusing on increasing its economic growth through strengthening its ties with countries globally, Singapore plans on continuing its partnerships with the US and Europe while further emphasizing on building its regional ties. With Singapore’s status in Southeast Asia as the only developed country, its actions can set a rhetorical action within the AEC region, ensuring globalization with the AEC region and the AEC Industry.
Strategies for Singapore’s next step
In order to increase its economic growth to up to 2-3% per year, the CFE has came up with seven recommended strategies that should be undertaken as a guideline for ensuring future success. These strategies are:
1. Develop and grow international connections
In addition to understanding more about regional markets, such as the AEC Industry, increasing trade partnerships and reducing trade barriers and tariffs through trade agreements, such as the AEC, is needed to develop global economic integration and trade liberalization. Moreover, with the rapid change and growth in technology and Asia, setting up a network to foster innovation, such as the global innovation alliance (GIA), is vital.
2. Attain and utilize deep skills
3. Build up enterprises capabilities to innovate and expand
4. Develop strong digital skills
5. Construct a vibrant and interlinked city of opportunity
6. Create and apply Industry Transformation Maps (ITMs)
7. Partner with various groups to achieve innovation and growth
With no knowledge on which industries will achieve success, being open to various ideas, trade, talent and building deep capabilities are crucial, as evident with the seven strategies designed by CEF to ensure this.
Impact towards the AEC Industry
With the rise of middle class and urbanization in Asia, there is great potential in many Asian markets, particularly in Southeast Asia (AEC Industry), India, and China. With Singapore focusing more on establishing international and regional ties, seen from its strategies, neighboring countries working with Singapore are expected to gain from this. This is already apparent in the existing township projects in China and industrial and business parks in Indonesia, Vietnam, and India that Singapore’s city-state’s companies have been developing. With strong potential in various Asian countries, including AEC, Singapore has the potential to achieve economic growth by tapping into the growing markets, including the AEC industry market.