Expanded Economic Space for Singapore

Playing up the anxiety of a small nation beset on all sides in a turbulent global environment, it is natural that Singapore should start to look nearer for balanced growth instead of looking afar to BRIC countries (Brazil, Russia, India and China). For the same reason that MM Lee Kuan Yew was insistent for a merger and unity in the early 60s of the two territories which will provide a common market and economic hinterland, Malaysia is still Singapore’s best bet. Malaysia is Singapore’s largest trading partner in 2009 with total trade amounting to S$86.1 billion, up from S$111.5 billion in 2008.



Indonesia, under the leadership of President Susilo Bambang Yudhoyono provided a decade of political and economic stability long wanting in this resource-rich Indonesian archipelago which has been an important trade region for Singapore. Indonesia is Singapore’s 4th largest trading partner in 2009 with total trade amounting to S$58.5 billion, up from S$75.1 billion in 2008



Whichever nearby economic space- Malaysia or Indonesia, Singapore must firmly anchor new roots into the supply chains of every global products it wants to deliver- pharmaceutical, petrol chemicals, semiconductors, biomedical products, etc- and to enlarge and to extend its supply chains across its nearest borders and to operate with neighbours in nexuses. We should build little Singapore and get Singapore’s enterprises as a pack to be able to work the entire supply chain reliably, from sourcing components to fabrication and sharing of R&D expertise. The enterprises must get together to support each other and even co-invest to go for the larger projects and reap bigger returns.



The vagaries of international markets means that whether Singapore goes near or far in its economic space expansion, risks still prevail and in this time, it is best for Singapore to amalgamate strengths nearer shores to capture a defining stakes in these crucial emerging markets of Malaysia and Indonesia.