Ho Fucai U087176J - GEK2003 Government and Politics of Singapore
Q3. By weighing the pros and cons of globalization, discuss its impact
and implications on Singapore and her people.
1. Introduction
Globalization is defined as “fundamental changes in the spatial and temporal contours of social
existence, according to which the significance of space or territory undergoes shifts in the face of a no
less dramatic acceleration in the temporal structure of crucial forms of human activity” 1. (Scheuerman,
2010)
Developments in transportation and information technology (IT) had accelerated globalization and
„shrunk‟ the world. The invention and the commercialization of flight and computing breakthroughs
such as the Internet had reduced the way that we interact with one another, resulting in time
efficiencies and the de-emphasizing of space. Globalization has reached a stage whereby it is now
possible to outsource business functions across the planet.
2. Singapore and Globalization
Singapore is amongst the most globalized countries in the world. It was ranked the 3rd most globalized
economy in world by Ernst and Young (2010). Singapore‟s embrace of globalization is said to be
selective in the sense that while citizens are open to influence of the world on views such as
democracy and human rights, values that are deemed incompatible by the government are rejected. In
this essay, we shall look at the implications and impacts of globalization, the unique circumstances
surrounding the global-city of Singapore and its selective embrace of globalization.
1
This definition was chosen as it best explained globalization from a generic perspective. Many existing
definitions of globalization are incomprehensive. For example, Levin Institute (2007) defines globalization as “a
process of interaction and integration among the people, companies, and governments of different nations, a
process driven by international trade and investment and aided by information technology”. However, such a
definition may not sufficiently depict the causative effects that globalization plays on “Americanization” or
“Westernization” of cultures and values nor does it provide sufficient credit to the advancement in transportation
technologies that resulted in the „shrinkage‟ of the world since it was argued that globalization spans the entire
course of history as transportation networks were increased.
Ho Fucai U087176J - GEK2003 Government and Politics of Singapore
Devoid of any natural resources, Singapore relies on imports to drive its industries. The small
domestic market of Singapore, with its habitants numbering at approximately 5.2 million (Singstat,
2011), makes it impractical to embark on a strategy of import substitution to drive its economic
growth.
As such, Singapore has little choice but to embrace globalization by exposing itself to foreign trade
and investments. Globalization on the economic front was readily accepted by Singapore, even before
the “Information Age” brought about by the use of computers. For example, the continuous
development of infrastructure such as both land and sea ports increased Singapore‟s connectivity with
the world.
3. Impacts of Globalization
3.1. Internet-Content Availability and Online Inter-Connectedness
Globalization has connected cities from around the world via the Internet. Singaporeans are given
open access to the Internet. Broadband internet and wireless broadband internet penetration rates at
103.7% and 145.5% respectively (IDA, 2011).
Political websites are allowed to operate under certain conditions. However, the government bans
approximately 100 “mass impact objectionable” pornographic websites as a “symbolic statement” of
the country‟s social values (Lee, 2008).
3.1.1. Impacts and Implications
3.1.1.1. Increased Efficiency and Leisure Opportunities
The availability of broadband Internet would obviously lead to increased avenues of entertainment for
Singaporeans. Compared to the 1990s, Singaporeans could now view live video streams on the
Internet and carry out social activities online.
Ho Fucai U087176J - GEK2003 Government and Politics of Singapore
Low Internet restrictions and the availability to top-of-the-line Internet infrastructure make Singapore
an ideal location for outsourced operations. Companies could tap on the infrastructure to computerize
business processes, leading to productivity gains.
3.1.1.2. Social Polarization
Former Minister Mentor Lee Kuan Yew has conceded that a political divide “has already happened”
in Singapore (Teo & Ng, 2011). This could result in problems of cohesiveness in the long run.
Websites critical of the government could be hosted in overseas locations and are easily accessed by
dissenters. This could lead to an issue of group polarization2, whereby views of the divided parties
become increasingly extreme, as they frequent websites that influences and reaffirm their beliefs. In
this sense, the Internet could widen the political divide that exists in Singapore.
3.1.1.3. Influence of Social Networks
Singaporeans spend most of their online time frequenting social networks (IDA, 2010). Social
networks could be exploited by parties for their own gains by propagating rumors. For example,
rumors that Dr Patrick Tan, son of President Dr Tony Tan, had enjoyed special privileges were
circulated on Facebook during the 2010 Presidential Elections. (Leong, 2011) The government has
since clarified the accusations, months after it was first circulated3.
The above incident indicates that the government has to be more proactive, responding to citizens in a
timely manner. It is plausible to think that social networks would result in a more liberal democratic
political environment, as citizens are able to openly question the government.
Social networks also facilitate the propagation of external events to Singapore. For example, the
“Occupy Wall Street” movement spurred the creation of other “occupy” movements around the world
2
Group Polarization (Psychology) - The tendency for groups to make decisions that are more extreme than the
decisions that would be made by the members acting alone (Gerrig & Zimbardo, 2002).
3
Defense Minister Ng Eng Hen had clarified in parliament the details regarding Dr Patrick Tan‟s NS posting,
explaining the reason as to why Dr Tan was granted a 12-year deferment period. In addition, Dr Ng had also
made known that other NS men had previously been posted to the Defense Medical Research Institute prior to
Dr Patrick Tan (Ramesh, 2011).
Ho Fucai U087176J - GEK2003 Government and Politics of Singapore
on Facebook. Despite that the Facebook-coordinated “Occupy Raffles Place” movement failed to
materialize (Mahtani, 2011), it can be said that the advent of the social networks had breached the
insulation of Singapore‟s society from external events.
3.2. Human Capital Requirement
Globalization made it feasible for MNCs to set up operations throughout the world, utilizing ever-
improving transportation and computer technologies. Rapid growth of Singapore‟s economy resulted
in a demand for manpower that cannot be satisfied by the citizen talent pool. The government had
implemented a liberal immigration policy and the local manpower pool was aggressively
supplemented by foreign workers4.
3.2.1. Impacts and Implications
3.2.1.1. Benefits to the Economy
Singapore‟s economic growth through the years would not have been possible without the
supplementation of non-citizens, given that Singapore lack natural resources and that human capital is
its only resource. Acceptance of globalization, in the sense of increasing Singapore‟s accessibility to
international manpower and the lack of barriers for such workers to enter the Singapore system, has
benefited Singapore‟s economic development.
3.2.1.2. Issues of Overcrowding
There are trade-offs in the government‟s immigration approach. The increasing proportion of
foreigners residing in Singapore has unsettled Singaporeans. Foreign workers are said to be
depressing the wages of Singaporeans as they are willing to accept lower wages. Singapore, which has
4
The decade-on-decade growth rate of non-residents in Singapore from 1980 to 2000 averaged at 56.73% and
by 2010, non-residents made up about a quarter of the total population. In addition, these figures do not account
for the permanent residents (PR) residing in Singapore. Of interest would be the fact that from 2000 to 2010, the
PR population increased by 88.2% to a strength of 541,000, or 10.7% of the total population. (Singstat, 2011)
(See Appendix “Key Demographic Indicators”)
Ho Fucai U087176J - GEK2003 Government and Politics of Singapore
the 2nd highest population density in the world, (United Nations, Department of Economic and Social
Affairs, 2011) is at risk of overcrowding.
Strains on public infrastructures are evident. Roads are increasingly congested as the number of
vehicles increased 36.5% from 2000 to 2010 to 945,829 while roads, which already occupy 12% of
land-scarce Singapore (Lui, 2011), had only increased by 8.9% (Singstat, 2011). Similarly,
Singapore‟s rail system is increasingly taxed as train ridership doubled from 1,092,000 in 2000 to
2,124,081 in 2010. (Singstat, 2011)
The opposition parties in Singapore had, with effect, exploited the electorate‟s negative sentiments
towards overcrowding and foreign talent to deal the PAP government its poorest election results since
independence (Rachel, 2011). Problems of overcrowding and competition by foreigners had been
openly acknowledged by the government, the seriousness of their implications has even led PM Lee
Hsien Loong to make a rare-apology to Singaporeans (Gopalakrishnan & Lim, 2011).
This unintended by-product of globalization has resulted in difficulties for the government as there are
no trivial solutions. Recent adjustments to employment policies have led to MNCs being “put off” as
these measures were deemed to be overly generalized, resulting in difficulties in hiring workers for
jobs that are shunned by locals. (Yahya, 2011)
Singapore‟s attractiveness to MNCs is a critical success factor for a thriving economy. MNCs account
for approximately 60% of the corporate sector‟s total assets and 42% of Singapore‟s GDP in 1998
(Singstat, 2001). In addition, there is a presence of 14,052 foreign companies in Singapore (United
Nations, 2009), creating jobs and opportunities for locals.
Policies need to be deliberated carefully to satisfy all stakeholders. While steps are taken to appease
Singaporeans, the government has to ensure that foreign investors retain confidence in Singapore.
Ho Fucai U087176J - GEK2003 Government and Politics of Singapore
3.2.1.3. Issues of Integration
Foreign workers in Singapore come from all over the world, possessing cultures that may be different
from the citizens. In addition, there may also be issues of distrust and disdain between the
Singaporeans and the foreigners.
For example, residents living in the area of Serangoon Gardens voiced their dissatisfaction when plans
for a dormitory in the area were announced in 2008. Residents were concerned that a presence of a
dormitory would lead to an increase in crime and calls were made to increase police patrol in the area
(Forss, 2008). There is outright discrimination against foreign workers, who are unfairly deemed to be
of unsavory character.
In addition, there are also conflicts between cultures. Public uproar arose when it was found out that a
migrant Chinese family had complained against the smell of their neighbor‟s curry. An online protest
calling for a “cook-a-pot-of-curry” day had garnered more support than the Facebook pages of the
2011 Presidential Elections candidates despite it being the campaigning period of the elections.
(Adam, 2011) Singaporeans are unhappy about foreigners who challenge the cultural norms in
Singapore. This is of course, noticed by the presidential candidates, all of whom ran their campaigns
along the lines of a “Singaporeans First” approach.
As globalization rages on, it is naturally expected that foreigners will be a part of Singapore‟s social
fabric. Currently, it seems that foreigners are only tolerated within the society, not accepted. Further
steps must be taken by the government to help assimilate them.
3.3. Worldwide Development
Globalization is not localized to Singapore. Nations all over are reducing protectionism and are
opening up their economies to foreign investments. This is evidenced by the growth in RTAs5. As
5
RTA – Regional Trade Agreements. In the years prior to 2000, there were a total of 71 RTAs in force. Within
a decade, the number of active RTAs has grown more than 2-fold, to the current figure of 219 (WTO, 2011).
Ho Fucai U087176J - GEK2003 Government and Politics of Singapore
such, Singapore has started shifting towards a Knowledge-Based Economy (KBE) to differentiate
itself from international competitors.
3.3.1. Impacts and Implications
3.3.1.1. Social Class Divide
A KBE would require a highly-educated workforce that is able to leverage on technology to maximize
productivity. The shift to a KBE has resulted in structural problems. Income gaps could widen as
knowledge-based workers are better shielded from competition. Citizens who have adapted to the
KBE would benefit, while those who had failed to do so would be vulnerable to redundancy. For
example, older Singaporeans, who find technology difficult to grasp, are left behind in this
information age.
The class divide could also develop into a racial conflict. Mutalib (2002) has posited that a future
racial conflict is plausible, as Malays, who occupy lower socio-economic status with respect to the
other communities, are at higher risk of stagnating.
Singaporeans as such, would be required to adopt an adaptable mindset to challenge globalization. In
addition, due diligence must be made by the government to ensure that all segments of society are
able to progress along with the country‟s economic growth.
4. Conclusion
As seen from the preceding sections, globalization has benefited Singapore economically. However,
the by-products, in the form of social impacts and implications, must be tackled with active citizenry
and governance.
(2037 words)
Ho Fucai U087176J - GEK2003 Government and Politics of Singapore
Appendix
Time Series on Labour Force Participation Rate
Year Total Male Female
1970
(Census) 55.3 81.2 28.2
1980
(Census) 63.2 81.5 44.3
1990
(Census) 63.2 77.5 48.8
1991 63.7 79.4 48.0
1992 63.9 79.4 48.6
1993 63.4 78.8 48.0
1994 63.8 79.2 48.6
1995 (GHS) 61.9 77.2 46.8
1996 64.1 78.7 49.9
1997 63.7 78.2 49.5
1998 63.1 77.4 49.4
1999 64.1 77.8 50.7
2000
(Census) 63.2 76.6 50.2
2001 64.4 77.7 51.6
2002 63.6 77.2 50.6
2003 63.2 76.1 50.9
2004 63.3 75.7 51.3
2005 (GHS) 63.0 74.4 52.0
2006 65.0 76.2 54.3
2007 65.1 76.5 54.3
2008 65.6 76.1 55.6
2009 65.4 76.3 55.2
2010 66.2 76.5 56.5
Source: Singapore Department of Statistics
GHS : General Household Survey
Retrieved from http://www.singstat.gov.sg/stats/themes/economy/hist/labour.html 23 October 2011
Key Demographic Indicators (Selected)
Population 1970 1980 1990 2000 2010 2011
Total Population('000) 2,074.5 2,413.9 3,047.1 4,027.9 5,076.7 5,183.7
Resident Population ('000) 2,013.6 2,282.1 2,735.9 3,273.4 3,771.7 3,789.3
Singapore Citizens ('000) 1,874.8 2,194.3 2,623.7 2,985.9 3,230.7 3,257.2
Singapore Permanent Residents ('000) 138.8 87.8 112.1 287.5 541.0 532.0
Density (Total population per sq km) 3,538 3,907 4,814 5,900 7,126 n.a.
Source: Singapore Department of Statistics
Ho Fucai U087176J - GEK2003 Government and Politics of Singapore
Retrieved from http://www.singstat.gov.sg/pubn/popn/keyind%20population2011.xls 23 October
2011
Population 1970 1980 1990 2000 2010 2011
Non-Resident Population ('000) 60.9 131.8 311.2 754.5 1,305.0 1,394.4
Decade on Decade Growth (%) 53.8 57.6 58.8 42.2 6.4
Proportion of Total Population (%) 2.94 5.46 10.21 18.73 25.71 26.90
Derived from preceding table.
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