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25-06-2014, 05:49 PM
specuvestor made an important point about our small domestic market.
IMHO, this is a very significant difference between SG and other developed countries. SG is just a 700 km2 island with no natural resources on this island. We import everything from water (although less water now), energy, food, etc; even the human resource that we have is shrinking due to low TFR and have to reply on import.
Our market is too small to be relevant to MNCs. Must MNCs and foreigners invest/come to SG? Not at all. If we do not welcome them, there are many other places that MNCs/foreigners can go to. For those who are here, do they need to stay? No again. In business, as all buddies know, it is easier to take a hit one time instead of subjecting the business to uncertain labor supply, increasingly restrictive regulations, etc. Say if we cut back on foreigner, reduce development and business opportunities, etc and manage to "discourage" investments and foreigner coming in, we start to lose vitality. What will happen to our own Singapore talent? Will they stay? Or will they go to other cities with better opportunities? Once this type of trend gets started, do we have the chance to back track and recover? Remember that we are all of 3+ million, not 30 million people. And with the most talented and mobile SGPorean leaving, what is left on this 700 km2 island?
Where is the correct policy balance? No one knows for sure. What I do know is when I hear people screaming (online) that policy making is so obvious, so "no brainer", I immediately dismiss such a view.
IMHO, this is a very significant difference between SG and other developed countries. SG is just a 700 km2 island with no natural resources on this island. We import everything from water (although less water now), energy, food, etc; even the human resource that we have is shrinking due to low TFR and have to reply on import.
Our market is too small to be relevant to MNCs. Must MNCs and foreigners invest/come to SG? Not at all. If we do not welcome them, there are many other places that MNCs/foreigners can go to. For those who are here, do they need to stay? No again. In business, as all buddies know, it is easier to take a hit one time instead of subjecting the business to uncertain labor supply, increasingly restrictive regulations, etc. Say if we cut back on foreigner, reduce development and business opportunities, etc and manage to "discourage" investments and foreigner coming in, we start to lose vitality. What will happen to our own Singapore talent? Will they stay? Or will they go to other cities with better opportunities? Once this type of trend gets started, do we have the chance to back track and recover? Remember that we are all of 3+ million, not 30 million people. And with the most talented and mobile SGPorean leaving, what is left on this 700 km2 island?
Where is the correct policy balance? No one knows for sure. What I do know is when I hear people screaming (online) that policy making is so obvious, so "no brainer", I immediately dismiss such a view.
