BGR Takeaways for Session 4
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Takeaways for BGR – MBA Class of 2015 BGR - Session 4 Case: “Singapore” – HBS, April 5, 1995 Reading: “Accounting for Productivity Growt” – HBS, Septe!"er 1#, 199# 1) Singapore has perhaps the best “investment climate” in the world. Its “doing business” indicators are excellent. The government is not only transparent and above board but also its meticulous and transparent economic planning as well as consequential extensive capital spending in anticipation o uture needs provide clear signals to the business community regarding the !ind o commercial activities it see!s to encourage "## and this enables business groups to all in line with and ta!e advantage o the direction provided by the $overnment. %) &owever' it has to be recogni(ed is that Singapore s requent changes in economic direction *beore reali(ing optimal gains) means the incurrence o waste in capital expenditures' as also the inability o labour to bene+t ully rom climbing the learning curve. This together with l capital sums expended in advance to cater to uture needs each time a new economic direction is adopted e,ectively lowers the return on capital utili(ed and demonstrably lowers the overall e-ciency achieved in the deployment o labour and capital. otwithstanding all this' the Singapore approach ### executed in the most competent manner "# has clearly maximi(ed welare and ostered the best possible environment or business to thrive' particularly those aligned with the ob/ectives o the country s economic planners. 0) To set up a business venture in Singapore' there is no need or a local partner or close relationships with authorities. xpect to be dealt with on merit and be closely regulated. ssential to understand and ollow laws2rules2regulations. 3) Singapore s location ' superb inrastructure *real and +nancial)' services' connectivity' integrity' availability o highly s!illed *albeit expensive wor! orce) ma!e it ideal or high or sophisticated service businesses with a global or regional reach. This would also be in consonance with Singapore s current economic thrust that see!s to emphasi(e all aspects o a !nowledge economy and activities at the cutting edge o technology. BG$ %BA &la'' of ()15 *Se!e'ter +++B ov 5 – -ec (., ()1#/
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Transcript of BGR Takeaways for Session 4
Takeaways for BGR MBA Class of 2015
BGR - Session 4
Case:Singapore HBS, April 5, 1995Reading:Accounting for Productivity Growth HBS, September 14, 1994
1) Singapore has perhaps the best investment climate in the world. Its doing business indicators are excellent. The government is not only transparent and above board but also its meticulous and transparent economic planning as well as consequential extensive capital spending in anticipation of future needs provide clear signals to the business community regarding the kind of commercial activities it seeks to encourage -- and this enables business groups to fall in line with and take advantage of the direction provided by the Government.
2) However, it has to be recognized is that Singapores frequent changes in economic direction (before realizing optimal gains) means the incurrence of waste in capital expenditures, as also the inability of labour to benefit fully from climbing the learning curve. This together with large capital sums expended in advance to cater to future needs each time a new economic direction is adopted effectively lowers the return on capital utilized and demonstrably lowers the overall efficiency achieved in the deployment of labour and capital. Notwithstanding all this, the Singapore approach --- executed in the most competent manner - has clearly maximized welfare and fostered the best possible environment for business to thrive, particularly those aligned with the objectives of the countrys economic planners.
3) To set up a business venture in Singapore, there is no need for a local partner or close relationships with authorities. Expect to be dealt with on merit and be closely regulated. Essential to understand and follow laws/rules/regulations.
4) Singapores location, superb infrastructure (real and financial), services, connectivity, integrity, availability of highly skilled (albeit expensive work force) make it ideal for high tech or sophisticated service businesses with a global or regional reach. This would also be in consonance with Singapores current economic thrust that seeks to emphasize all aspects of a knowledge economy and activities at the cutting edge of technology.
BGR MBA Class of 2015 (Semester IIIB Nov 5 Dec 27, 2014)
