SUNTEC SINGAPORE INTERNATIONAL
CONVENTION AND EXHIBITION CENTRE (SICEC)
This academic essay was commissioned to address Singapore‟s current contemporary issues and
analyse the impact they have on the Meetings, Incentive Travel, Conventions, Exhibitions
(MICE) industry in Singapore, in relation to SICEC. As with most businesses, the MICE
industry is not static. Hence, a detailed analysis on the external (macro and micro aspect) and
internal environments of the industry and SICEC respectively will be done in relation to the key
contemporary issues and how it impacts them.
Key contemporary issues include, the spillover effect from the 2008 U.S financial meltdown,
which took its toll on almost all industries globally, causing a domino effect which led to the
unstable economic conditions in Singapore; the recent H1N1 influenza pandemic outbreak in
several regions of the world, mostly Asia; and the spillover effects from the two mentioned
issues leading to the decline in foreign direct investments into Singapore.
An evaluation with regards to the industry‟s attractiveness and the firm‟s competitive advantage
will too be discussed in details.
Analysis on the External Environment (Macro) of
Singapore’s Economy and MICE Industry via PESTL factors
Investors feel confident to invest and hold events in Singapore due its political stability and
transparency of its Government, i.e. People‟s Action Party. Prestigious events such as the
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International Monetary Fund and World Bank annual meetings hosted in 2006, B4E – Business
for the Environment Global Summit by the United Nations Environment Programme in 2008,
Formula One Grand Prix Night Race in 2008, 2010 Youth Olympic Games etc.
Strong support from the Singapore Government
Over the years, the Singapore Tourism Board (STB) has strongly encouraged the MICE industry
in Singapore. According to the Tourism 2015 vision outlined by the STB, the tourism sector is
set to be transformed into a key revenue generator by 2015, with targets of raising tourism
receipts to S$30 billion and increasing visitor arrivals to 17 million (STB 2005). Global
marketing campaigns such as “2009 Reasons to enjoy Singapore” and “Singapore, where Great
Things Happen” was developed by the STB to promote the MICE industry in Singapore as a
destination of choice for world-class venues to suit a large spectrum of business events as well as
rewarding experiences for exchange of ideas, networking and business prospects. The
Government has also been promoting Singapore as a Sports Hub e.g. The Youth Olympic Games
2010, which would help develop Singapore's competitive edge in the international arena for the
MICE industry in order to attract more foreign delegates and investors.
In February 2009, the STB launched a S$90 million initiative, BOOST (Building On
Opportunities to Strengthen Tourism) aimed at helping the tourism sector ride through the
challenging times (STB 2009). The Marina Bay Integrated Resort is another major government
incentive to further boost the MICE industry which encompasses the Marina Bay Financial
Centre, a $2 billion entity (MBFC 2006). STB will also leverage online media and viral
marketing channels such as Facebook to create attention-grabbing campaigns to enlarge their
reach and create even more buzz about Singapore (Aw 2009).
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Weak Global Outlook and its Impact on Singapore’s FDI and the MICE industry
The global economic crunch has had a considerable negative impact on all industries across the
board with the tourism industry being affected the most. Global cut-backs in consumer and
business spending, as well as disruptions in financial systems, have significantly affected
worldwide trade and investment flows. This synchronised downturn has led to the decline in
foreign direct investments in Singapore caused by the spillover effect from the recession and
uncertainties in the global economic environment. MNCs are likely to cut back on their overseas
investment plans in preparation for possible difficult scenarios that may arise from the uncertain
economic and financial conditions. Statistics have shown the FDI inflows decreasing by 32% in
2008 (Lee 2009). The drastic decline in FDI inflows into Singapore after the global economic
downturn is illustrated in Appendix 1 (page 27 of this essay).
Coupled with the recent H1N1 influenza global pandemic outbreak, Singapore‟s MICE industry
is estimated to decline by 20 per cent, with exh