Skilled Labor Force
The work force of Singapore is rated the best in Asia with Hong Kong and the Philippines following behind. IT manpower has grown four and one-half times over the last ten years to 18,000 professionals in 1993. By the year 2000, this number is expected to reach 35,000.(34)
The labor force in Singapore is not only literate but is also very skilled in the use of computers. The literacy rate for those ages fifteen and over is 89%. In addition, the 1994 World Competitiveness Report ranked Singapore number one for its computer literacy rate. Computers and information technology are widely used in the workplace and at schools. Currently, in schools there is one computer for every fifteen to twenty students and by the year 2000, the government hopes to achieve a ratio of one to three. The government is also actively involved in the use of computers with two out of three government employees using a computer in 1994.
Infrastructure
Singapore's infrastructure is quite advanced and is continuously being upgraded by the government in order to complete the transformation of Singapore from a low-tech society to a high-tech society. Singapore's goal is to connect every home, office and school with information technology. The country's advanced and complex infrastructure developed by the government gives advantages to both IT and non-IT firms investing in Singapore.
Proximity to Asian Market
If a company would like to establish a hub for distribution or manufacturing to the rest of Asia, Singapore would be ideal because of its infrastructure and proximity to the Asian market.
Domestic Market
Singapore's domestic market can be perceived as both a strength and a weakness. As a strength, computers and information technology are widely used throughout the country. This allows manufacturers to receive feedback on what customers are looking for in a product. On the other hand, the domestic market in Singapore is quite small with a population of 2.8 million. This limits the size and growth potential of the markets and makes companies in Singapore rely on exports to sustain growth.
Investment and R&D
Singapore attracts a substantial number of high-tech companies and manufacturers. This is due in part to the generous government incentives offered to foreign investors. The government is willing to assist firms by providing incentives such as tax breaks to employee training. The success of the country's investment policies can be seen through an increase in exports to other markets. The government of Singapore is also working jointly with many companies on R&D projects. As a result, Singapore receives many of the benefits that result from this research.
Deregulation and Liberalization
Many areas of the telecommunications market are being deregulated or liberalized at the present time. These areas include the Internet, telecom services, and cellular communications. This will allow for increased competition and force current companies to be more innovative.
Singapore's strengths will allow it to become a more technologically advanced and competitive nation in the years to come. Not only will global companies find Singapore attractive, but small, local companies will benefit as well. For example, a Singapore company currently has most of the world market for sound cards and with the growing popularity of this product and others like it, local companies producing high-tech items may have the chance to become large exporters of these products to other areas of the world.
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