The commitment by the government and industries of Singapore in developing an advanced infrastructure will have positive implications for non-IT firms that want to do business in the country. Not only is the infrastructure being upgraded, but the people are also working towards being more IT oriented.
Network Infrastructure
The telecommunications infrastructure in Singapore is fairly advanced although many improvements are still needed. This infrastructure allows non-IT companies to be connected with other operation sites around the world. This could attract businesses to operate in Singapore rather than China or Indonesia due to the infrastructure and many may be tempted to accept higher costs in other areas just to receive this advantage.
IT Professionals
The number of IT professionals that are emerging from universities and Polytechnics each year is continuing to increase. This is an advantage to non-IT firms because they will be able to find the expertise they need on the island and will not have to look elsewhere for help. This could also lead to a cost advantage for businesses that set up their operations in the country due to the fact that they will not have to bring in expatriates to fill the technical positions.
Labor Costs
The increasing labor costs in Singapore may be an important factor in locating a non-IT globally-competing firm in the country. If a company is looking for a low-cost manufacturing center to produce its products, Singapore may not be the best choice. Countries such as Malaysia and Indonesia are more suited for the production of mass produced goods that take less technologically advanced equipment and employees. Singapore continues to be a center for high-tech products that require advanced infrastructure and technology. This is not to say that global companies interested in setting up operations in Singapore should be discouraged. Labor costs here are still a percentage of what they are in countries such as the United States.
Example
An example of a complete non-IT industry in Singapore is the publishing industry. Singapore is the regional headquarters for a number of large publishing companies. In 1994 alone, Times Mirror and the Thomson Group set up regional offices in the country. The activities of most of these companies range from marketing and distribution, to reprinting, to translation and adaptation. Even though publishing is not traditionally thought of as an IT industry, companies located in Singapore are continuing to advance using multimedia and electronic publishing and thus gain a competitive advantage by locating in Singapore over some other Asian country.
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