External economy evolves

GLOBAL partnerships and strategic alliances with international companies and overseas governments have made, what Singapore's policymakers call, ''Singapore Unlimited'' - a highly competitive industrialised economy.

Building on its competitive advantages, such as efficient business infrastructure, political and social stability and location, Singapore has created prosperity and evolved into a city that can handle everything from research and development to marketing and distribution.

Often the republic's economic growth rates have surpassed those of many countries in the region. In the first quarter of this year, for example, gross domestic product (GDP) growth reached 11 per cent.

Ministry of Trade and Industry (MTI) figures show manufacturing and financial and business sectors expanded double digits, stimulating growth.

There are expectations of higher growth for the year.

Such economic performances have been the result of global networking.

While building bridges with the world, Singapore Unlimited has begun cultivating collaboration with regional economies. Now, Singapore Unlimited is making an effort to become Singapore Inc.

According to the Economic Development Board (EDB), promoting outward investments, especially in the region, has marked a new economic strategy for the republic.

Government policy-makers view the strategy as one which will ensure sustained economic growth.

The new policy is being supported at the highest levels of government.

In late April, Singapore's Prime Minister, Goh Chok Tong, visited London to market the government's ''external wing'' policy.

As a part of the external wing policy, Singapore has been building industrial parks in China, India and Indonesia, and Mr Goh said while in London that these ventures could be regarded as ''an extension of Singapore, so that you can take advantage of the lower labour costs in those countries''.

Chairman of the EDB, Philip Yeo, while noting that the government could not lead the push for regionalisation, has said the board would ''initiate regionalisation efforts and provide support for the private sector to venture forth''.

In May last year, a regionalisation forum was held in Singapore.

Mr Yeo described the republic as ''Singapore Unlimited'', referring to its role as a gateway to the region and beyond and also the opportunities the city created.

According to Mr Yeo, the EDB had many broad-based assistance programmes to promote outward investments.

''We also provide focused assistance, for example, through linking specific multinational companies with local companies for investment in the region, and establishing formal linkages with governments or businessmen such as the Vietnam-Singapore Commission for Co-operation and the German-Singapore Business Forum.'' A Shandong-Singapore Business Council was also set up last year.

These regionalisation efforts have borne results.

Singaporean private sector companies have emerged as the dominant force in Vietnam and many others have linked up with partners in countries in South Asia, including Sri Lanka, in ventures ranging from infrastructure to tourism.

Singapore's investments in China have been growing at a rapid pace. A consortium of Singapore companies is building an industrial park on a 10-square-kilometre site in Wuxi.

Recently, the EDB and Trade Development Board (TDB) led a mission to Shandong, to explore opportunities in the food industry.

In Indonesia, an industrial estate for light industries is being developed in Bintan in the west. And the Batam Industrial Park, on Batam island Indonesia, is in operation.

In Karnataka, India, a business park is being developed on a 50-hectare site.

Singapore's efforts towards regionalisation will not mean a diversion from attracting inward investments. It is reinforcing its push for investments.

The EDB has created a new investment arm, EDB Investments Pte. Ltd, to attract high value-added technology firms.

Available data shows EDBI invested S$44 million (about HK$225 million) in six companies in 1992-93 and a further S$60 million was invested in more than 30 companies through its subsidiaries.

These figures do not reflect government-linked investments. According to an EDB spokesman in Hong Kong, these comprise a small component of total commitments.

As it embarks on its ''next lap'', Singapore is harnessing resources outside the republic and strengthening itself to move on.