1. Sustaining Economic Development in a Globalising World Keywords: 1.Sustaining 2.Development 3.Globalising Secondary 4 Text: Chapter 2

2. ‘GLOBALISATION’ A silver lining? A threat? Benefit for the people? Losses for the people?

3. ‘GLOBALISATION’ An ever-changing process Events & Changes that occur elsewhere, but directly or indirectly will affect how we live & run our lives S’pore must always be able to adapt to the changes that occur globally, in order to maintain our economy & livelihood in the long run.

4. 1.Transportation Improvement in tpt  more travelling  more devt in countries (tourist attractions)  more imports & exports of goods to many countries  more businesses E.g. of improvement in transport a) commercial jet aircraft, budget airlines b) ships, containerisations, trains, bullet trains c) expressways, highways, a variety of vehicles  Lesser time travelled  More business deals Important Forces of Globalisation Development in Transport & Communication

5. 2. Communication Improvement in technology  greater communication amongst people within & outside of their countries More businesses taking place; consumers & businesses able to access information of goods from their own homes E.g. of improvement in technology a)Internet (Broadband, Wireless, WiFi, etc) b)International roaming; video-conferencing Important Forces of Globalisation Development in Transport & Communication

6. Important Forces of Globalisation – Transnational Corporations (TNCs) TNCs: Large global firms that operate in many countries; have production or service facilities outside their country of origin. E.g. -Microsoft Corporation -Toyota Motor -Sony -LG -Motorola

7. Important Forces of Globalisation – Transnational Corporations (TNCs) Why do TNCs set up businesses all over the world? -Newer markets to meet greater demand of products -Cheaper cost of production  low rental of land, bigger spaces, cheaper wages, more workers & different skills available  greater profit margins -Able to monitor progress of business in another country from the headquarters (at country of origin) thru advancement in technology & communication

8. Impact of Globalisation Economic Social Environmental

9. Impact of Globalisation - Economic 1.Improvement in standard of living (SOL) 2.Increased competition among nations - investment & market - E.g. China & India & Middle East Market 3. Talent – either influx of experts to one country & ‘brain drain’ for another 4. Wider income gap between rich & poor

10. Impact of Globalisation - Social 1.Increased awareness of foreign culture -More open to learning about other cultures coming into the country 2.Loss of local culture -More westernised due to introduction of products from the West -E.g. Starbucks, McDonalds, MTV, Hollywood

11. Impact of Globalisation - Environmental 1.Environmental Degradation -Deforestation  loss of homes  loss of diversity of plants  loss of soil fertility  more landslides & soil erosion  more exploitation of locals -Haze issue in SE Asia particularly in S’pore  affected tourist arrivals -Global Warming  more CO2 produced due to more factories set up, movt of airplanes & ships

12. Impact of Globalisation - Environmental 2. Environmental Management -Brought much awareness to countries in saving the environment -Countries know that in order to have continued economic growth & prosperity (sustainability) so that future generations be able to enjoy them  need to look after the environment -Countries embarked on conservation efforts e.g. national forest reserves, use energy-efficient products, Kyoto Protocol -Alternative energy sources introduced – e.g. water, wind, solar, geothermal power to produce electricity instead of just depending on oil (petrol) however, these methods could be very costly

13. Challenges that S’pore faces now & in the future 1.Ageing Population 2.Transnational Terrorism 3.Maturing domestic economy 4.Diseases outbreak e.g. SARS, bird flu 5.China, India & Middle East as competitors

14. S’pore strategies to make the most out of its opportunities & overcome world challenges… 1.Diversifying economy 2.Nurturing growth of small & medium enterprise (SMEs) 3.Venturing Abroad 4.Expanding market reach through economic cooperation 5.Managing resources efficiently

15. S’pore strategies to make the most out of its opportunities & overcome world challenges… 1. Diversifying economy Twin industries – manufacturing + services a) A hub for technology intensive, high value-added manufacturing activities e.g. chemical engineering, pharmaceuticals, genetical engineering Established research & devt (R & D) capabilities e.g. A*STAR [plenty of research institutes set up to research in the Life Sciences Research of cancer antidotes, SARS antibodies b) A regional hub for services e.g. education & tourism Linking up of S’pore universities with other established universities abroad Two integrated resorts (IRs) in Marina & Sentosa to attract more tourists into S’pore as faced stiff competition from neighbouring countries  Greater world recognition  More investments  more jobs for the people

16. S’pore strategies to make the most out of its opportunities & overcome world challenges… 2. Nurturing growth of small & medium enterprise (SMEs) Important job providers Supports operations of TNCs by supplying them with components in manufacturing process SMEs find it difficult to compete with bigger firms that have more resources & better technologies thus difficult to sustain their businesses SMEs tend to focus on local markets thus difficult to expand and get better profits S’pore has established various schemes to help SMEs sustain their businesses in terms of management & trainings, tax exemptions

17. S’pore strategies to make the most out of its opportunities & overcome world challenges… 3. Venturing Abroad Limited land +Labour  S’pore firms invests in other upcoming markets such as China, India & Middle East S’pore govt & S’pore firms provide expertise & capital to develop industrial parks in China & India Promotes more sustain economic growth for S’pore, world recognition of S’pore abilities & development More S’poreans studying & working abroad  ‘brain drain’ for S’pore; govt need to find ways to bring these S’poreans back

18. S’pore strategies to make the most out of its opportunities & overcome world challenges… 4. Expanding market reach through economic cooperation Create trade ties with other countries Allows local companies to sell goods at a bigger market Free Trade Agreement (FTA) - availability of more choice of goods & services - higher service standards - taxes removed thus lower operating cost - increasing profits due to bigger market - ease of local companies to tie up with overseas firms E.g. Special Economic Zones (SEZs) between S’pore & Indonesia (Batam, Karimun, Bintan)

19. S’pore strategies to make the most out of its opportunities & overcome world challenges… Managing resources efficiently Developing People 1. Promoting local entrepreneurship & technopreneurship 2. Promoting continuous learning among workforce Attracting foreign talent Managing the environment 1. Managing limited land resources 2. Cooperation with regional & international organisations 3. Public education