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Turning a necessity into an export : the development of Singapore’s water industry
Author
Mohamed Osman Rahamat
Supervisor
Wong, Shuang Yann
Abstract
Since Independence, the success of Singapore’s economy is closely associated with effective governance and strategic economic development policies. The city-state has undergone several stages of industrial restructuring to sustain its competitiveness in the global economy through introducing or modifying elected key industrial sectors in accordance with the prevailing techno-economic paradigm at the successive stage of its economic development. The recent focus on the clean-tech industry, in particular the water sector, is regarded as a strategic growth area by the Singapore government. Existing studies on water resources of Singapore are often examined from the hydrological, environmental or geo-political perspectives. This research investigated the performance and perceptions of a cluster of participating firms to elucidate the factors and processes that lead to the evolution of the water industry. The research survey covered a sample of firms that vary in size, years of experiences and managerial/professional expertise. Evidently, the water industry has evolved as part of the new techno-economic paradigm. It is also circumscribed by the country’s distinctive history, geography and political economy. The study shows that the water industry has evolved from several key interconnected industrial clusters driven by market demands, innovations and technological development. More importantly, the government’s thrust on reducing dependence on imported water supply and the greater access to relevant technologies have expedited the process of its evolution. Water firms in Singapore, have commoditized the role of water from a public good to a highly demanding exportable commodity. By optimizing the prevailing technologies and markets through adaptation, engaging in best practices and strengthening intra- and inter-firm linkages, the water industry cluster in Singapore took shape to form part of the Industry21 agenda. The adaptability and flexibility of participating firms and the supportive and collaborative role of the government contribute largely to the expansion of the water industry. Inadvertently, the more resourceful large water firms which have the advantages in the availability of and access to capital, skills, markets, business network and technology know-how often enjoy the benefits from the government’s development strategy of ‘picking the winners’, presumably to the disadvantage of small firms. The water industry seemed to have treaded the same development path of the Electrical and Electronics (E&E) industry in terms of collaboration between large foreign firms and local firms. This research found that the subcontracting relationship that has benefited local SMEs in the E& E industry especially in market access, knowledge transfer, innovations and technology upgrading was weak in the water industry. The E&E industry evolved out of the necessity to solve the serious unemployment problems of post-independence years. The water industry, on the other hand, evolved from developed key industrial clusters and the geo-political need to sustain water supply and competitiveness of resource-scarce Singapore. Most small local firms, though constrained by the shortage of local skilled labour, low customer base, low track records and little experience, are keen to engage in product diversification and upgrading their technological capabilities and have positive outlook of the industry.
Date Issued
2013
Call Number
HD4465.S55 Moh
Date Submitted
2013