Research Of The Singapore Development Strategy Based On East Asia Economic Integration

In the process of the global and regional economic integration, there have been changes to the economic and political pattern/structure in the region. With the rise of the two regional developed economic superpowers, China and India, Singapore's local industry was further affected by the"hollow effect". Hence, it has to promote new strategies and re-positioning of future development, to prepare itself for economic transformation in the next decade.To establish the future development strategies position of Singapore, we need to review the previous development course, by analysing the key success factors of the past and the internal strengths and weaknesses of the past economic development. There have always been new challenges to deal with during the economic development in Singapore, which results in the strong ability to adapt to changes. The ultimate change in the external environment requires a befitting strategy and orientation system to meet the dynamic challenge. The integrated economic strategy will emerge at the right time.The growing economy in East Asia is making the trade and investment more and more integrated with each other, and changing the industrial structure of the region. As a result, the international labour division is more likely to be a regional, compound network, leading to the integration featuring"horizontal labor division"between the value chain and the business flow. When the industrial structure is more developed, enhanced pass-on and complementation will be the main outcome.From the previous East Asia industrial structure ("Flying Geese"mode), the evolution of the mode will pass through the present state ("geese in disorder"mode) and entering to a horizontal mode of"overlapped mountains with co-opetition". As what occurred in European Union in early days, this horizontal mode will drive the integration process of East Asian economy. When the East Asian economy becomes a more integral body, the economic benefit will vary in different states of the region and certain states may even result temporary loss of the benefit. Singapore should cooperate with its competitive economic entities in East Asia and create a larger opportunity for their mutual benefit and complementation. As to the structure of exported commodities, Singapore should seek common interests with such entities while resolving differences between them, or even transforms such differences into common interests. To achieve these objectives, politicians and businesses of all East Asian states must work closely with each other to coordinate their commitments.Having location advantage, Singapore should position itself as the"Political and economy Center of East Asian". With the process of economic integration in East Asia, South Asia and Southeast Asia, Singapore being the heart in Southeast Asia, is likely to become the preferred East Asia headquarter for many multinational corporations. To acquire this status, Singapore should diversify itself into eight global or regional centers, which include being the "cultural & educational center", "tourism center", "conference & exhibition center", "information center", "business & trade center", "financial center", "shipping center" and "R&D center".For those enterprises under globalisation, its main objective should be in maximizing its global profits. They shall base on the collaborative advantages between the nations and the enterprises when they design there globally or regional strategies and become the "integrative global or regional enterprise".Along with the progress of global and East Asian economic integration, this integrated economic strategy should be implemented in a long run to receive continuous and dynamic profits. However, to a large extent this economic strategy depends on the development state of East Asian economic integrity, but with the strong enforcement of this development, the uncertainty will definitely be reduced gradually.The innovation of this thesis shows itself from the following aspects:(1) This thesis analyzes the relationship matrix among the international, national, industrial and enterprise's integrative policies. The thesis is also distinguishing three major models based on the collaborative advantages between the nations and the enterprises when they design there globally or regional strategies.(2) By conforming and analyzing internal and international documents, redefines the characteristics and the past 180 years of developing history of Singapore. It will be helpful to clear the contradiction of the layout before planning future strategy and doing re-positioning programme for the nation.(3) In conjunction with the study of collaboration, contemporary modularization theory and Chinese traditional management philosophy, by introducing the collaborative capability module.(4) This thesis also introduces Singapore economic integration with suggestions for local politicians, businessmen and scholars for consideration and references.