Singapore's Manufacturing Sector Research Articles

Chemical companies look into corporate sourcing of renewable energy to secure clean, reliable & competitive power in the future

Within the context of a tri-variate vector autoregressive framework that includes entrepreneurship, this paper examines the link between electricity consumption and industrial production in Singapore's manufacturing sector. Unlike the existing studies, this paper focuses on one sector of the economy and utilises a unique monthly dataset. Empirical analysis based on Johansen's cointegration approach shows that the three variables are cointegrated – i.e., a stable long-run relationship exists among electricity consumption, output and entrepreneurship in Singapore's manufacturing sector. Empirical analysis based on data from January 1983 to February 2014 reveals that electricity consumption adjusts very slowly to shocks to industrial production and entrepreneurship. Furthermore, entrepreneurship Granger causes electricity consumption, which causes industrial production. As electricity consumption causes industrial output, the growth hypothesis concerning energy consumption and economic growth holds in Singapore's manufacturing sector and policies that restrict electricity production, without electricity imports, are likely to lead to a decline in the manufacturing output.

Factors Affecting Export Competitiveness of Singapore’s Manufacturing Sector: A Regression Analysis

This paper examines the export competitiveness of the manufacturing sector in Singapore. More specifically, we examine how the existence of import content of exports, productivity gains, and profit margins affect the competitiveness of Singapore’s manufacturing exports. Using proxies such as price of exports, price of imports, unit business costs, and net operating surplus over manufacturing output, we analyze our results empirically and seek to show the significance of these variables in affecting the export competitiveness in the unique case of Singapore. As price of exports and price of imports are both expressed in Singapore dollars (SGD) and this captures the exchange rate, we can assess the impact of a stronger SGD on the export competitiveness of Singapore’s manufacturing sector. Traditional economic notions according to Mundell–Fleming model have predominantly assumed that the appreciation of local currency would stimulate imports and harm exports, vice versa. However, in the case of Singapore where there is a high import content in exports, our paper reveals that exports are not adversely affected by an appreciation of SGD. This is attributed to the direct causal relationship between import prices and export prices that helps to minimize the effects of a higher cost of export production brought about by appreciation, with lower import costs. Furthermore, the impacts of productivity growth and profit margins on export competitiveness are very small, supporting the notion that Singapore exporters are price-takers.

Electricity consumption, industrial production, and entrepreneurship in Singapore

Within the context of a tri-variate vector autoregressive framework that includes entrepreneurship, this paper examines the link between electricity consumption and industrial production in Singapore's manufacturing sector. Unlike the existing studies, this paper focuses on one sector of the economy and utilises a unique monthly dataset. Empirical analysis based on Johansen's cointegration approach shows that the three variables are cointegrated – i.e., a stable long-run relationship exists among electricity consumption, output and entrepreneurship in Singapore's manufacturing sector. Empirical analysis based on data from January 1983 to February 2014 reveals that electricity consumption adjusts very slowly to shocks to industrial production and entrepreneurship. Furthermore, entrepreneurship Granger causes electricity consumption, which causes industrial production. As electricity consumption causes industrial output, the growth hypothesis concerning energy consumption and economic growth holds in Singapore's manufacturing sector and policies that restrict electricity production, without electricity imports, are likely to lead to a decline in the manufacturing output.

EFFICIENCY WAGE THEORY: EVIDENCE FOR SINGAPORE MANUFACTURING SECTOR

This paper attempts to test whether there is econometric evidence in support of the efficiency wage theory in Singapore's manufacturing sector. Two of the possible ways to account for efficiency wages are to show that higher wages have resulted in reduced shirking by workers, and to show that higher wages have resulted in an increase in worker productivity. We find evidence in support of efficiency wages for three out of 18 industries within the manufacturing sector in Singapore based on both ordinary least square (OLS) and 2SLS regression results, and for another two industries based only on OLS and yet another two industries based only on 2SLS.

Competitive intensity and collaboration: impact on firm growth across technological environments

AbstractThis article investigates the impact of competitive intensity and collaboration on firm growth across technological environments. I propose that competitive intensity determines the likelihood of firm collaboration, and that the interaction of competitive intensity and collaboration influences firm growth. These relationships are, in turn, moderated by industry‐level technological intensity. Analyzing 1,004 firms and 378 collaborations from the manufacturing sector in Singapore, I find that firms facing high or low levels of competitive intensity collaborate less often than those facing moderate levels of competitive intensity. Industry technology intensity moderates this relationship, with a stronger inverted‐U‐shaped association between competitive intensity and collaboration in more technology intensive industries. Collaboration leads to higher growth for firms facing lower levels of competitive intensity than for firms facing higher levels of competitive intensity only in more technology intensive industries. In technologically less intensive industries, collaboration leads to higher growth for firms facing higher levels of competitive intensity as compared to those facing lower levels of competitive intensity. These findings have important implications for competitive and collaborative dynamics for firm growth in different technological environments. Copyright © 2008 John Wiley & Sons, Ltd.

Foreign investment, human capital and manufacturing sector growth in Singapore

Foreign investment has been long regarded as the main driver of Singapore's manufacturing sector growth. By making use of annual data for the period 1980–2005, this paper argues that in addition to foreign investment, human capital is also playing a significant role in foresting manufacturing sector growth in Singapore. Empirical analysis shows that foreign investment, human capital and value added in manufacturing are cointegrated. The paper also argues that continued growth into the future requires further diversification of the manufacturing sector and increased spending on R&D and advanced education.

Singapore's Emerging Knowledge Economy: Role of Intellectual Property and its Possible Implications for Singaporean Society

This article seeks to take an exploratory and critical look at the role of intellectual property (IP) in the development of Singapore. IP protection has become an important factor in the move to a knowledge-based economy (KBE), in which information is a prized asset. In order to preserve its traditional role as a regional trading entrepot, its economy has evolved from an initial concentration on heavy industry-based manufacturing to manufacturing in knowledge-intensive products (electronics, chemicals and engineering), and the provision of financial and banking services. IP is now, arguably, a critical factor in the latest attempts by the Singaporean leadership to remain relevant to the regional and global economy. Faced with numerous competitors and cheaper labor markets, an impressive drive has been launched towards the enhancement of knowledge-intensive industries for which IP protection is vital. These include the creative industries strategy (copyright industries) and the provision of biomedical services (pharmaceutical, medical devices, biotechnology and healthcare services), the “fourth pillar” of Singapore's manufacturing sector, in addition to electronics, chemicals and engineering. Singapore seeks a competitive edge in this niche, for which IP protection seems vital. Patents are particularly relevant to the fourth pillar. This article will examine the following: (1) the place of IP historically in its economic development; (2) its role in various aspects of various strategies in its current economic development plans—the creative industries strategy, the intelligent island strategy and the fourth pillar strategy; and (3) critical IP issues for Singapore's economy. It does so with several key questions in mind. (1) Could the drive to an IP intensive knowledge economy generate social dislocations? (2) Which segments of Singaporean society stand to gain or lose in the move to an intensively knowledge-based economy? (3) Can the IP system contribute to softening the blow in any such dislocations? This article seeks to stimulate research into the social and economic impact of IP in Singapore's developmental process, an area thus far understudied.

Unionization in Singapore: A Social Psychological Study

AbstractThis study examines the nature of collective action (unionisation) in the manufacturing sector in Singapore, using the social psychological analytical framework as proposed by Guest and Dewe (1988). It was found that among the four explanations of union joining, influence from colleagues emerged as the most important discriminator between members and non-members. This was followed by the costs and benefits of joining a union. Employee dissatisfaction as well as personal and job characteristics did contribute to the prediction of membership status but were of lesser significance. Implications of the findings highlighted the need to further our understanding of how group dynamics affect the unionisation process and how current recruitment strategies can be improved. With a sound appreciation of the demand for and supply of union services in Singapore, this will bring present membership growth to even newer heights.

Singapore's Manufacturing Sector's TFP Growth: A Decomposition Analysis

Singapore has been criticized recently for experiencing insignificant total factor productivity (TFP) growth. This paper examines whether this criticism is valid in the context of the manufacturing sector of Singapore. Using new data and the stochastic production frontier approach, TFP growth is decomposed into technological progress and changes in technical efficiency. While the results could not reject the hypothesis that Singapore's output growth is mostly input-driven, they show that, despite technological progress, technical inefficiency is the cause for the low and declining TFP growth in the manufacturing sector.J. Comp. Econom., December 2000, 28(4), pp. 828–839. The University of Queensland; Research School of Pacific and Asian Studies, The Australian National University.

Industrial Property and Structural Change of Manufacturing: a Relative‐Cost Analysis

Structural change in manufacturing is gaining momentum in many developed as well as developing cities due to an emerging phenomenon of international division of production. As an advanced developing city‐state, Singapore has had the same experience. Labor cost has been an obvious major factor responsible for the structural change in manufacturing since the 1970s. However, having seen that industrial property as a vital factor in manufacturing production is neglected in research, this paper explores the role of the industrial property market in the process of structural change in Singapore's manufacturing sector. On a background of land scarcity and rapid growth, it is found that Singapore industrialists must invest more in premises than previously. There are indications that changing industrial property prices have affected manufacturing groupings unevenly and thus led to structural changes in the use of industrial properties. Space has been transferred from less competitive sectors to more competitive ones due to comparative advantages in its utilization enjoyed by efficient sectors. Therefore, the general trend of rising land costs has contributed, to a certain extent, to the restructuring of Singapore's manufacturing sector.

Productivity of Singapore's Manufacturing Sector: An Industry Level Non-Parametric Study

This paper seeks to measure and to explain the productivity of Singapore's manufacturing sector using industry level data. It utilises a non-parametric approach consisting of a set of production distance functions, each of which is obtained by solving a linear programming problem. From a time-series of 1983 to 1993, across thirty industries, we obtain three indices: a Malmquist total factor productivity (TFP) index, an efficiency change index, and a technological change index. The resulting TFP growth stands at 4.6% per annum, considerably greater than previous estimates using aggregate country level data. Three-stage least squares are then applied to the pooled data. Foreign ownership and labour quality are found to have important impact on TFP growth.

Industrial Relations Climate in the Manufacturing Sector in Singapore

The objective of this study is to assess the state of workplace industrial relations climate in the manufacturing sector in Singapore. Based on a survey of 73 manufacturing companies in Singapore and subsequent intensive study of eight of them, it was found that the overall labor-management relations in the industry were good and had improved over the past few years. Union membership was reported to have increased and this was accompanied by a perceived increase in union role and influence on labor-management relations. The findings also highlighted the need to strengthen the communication processes among the three parties—workers, unionists and management.

Time-based competition: Some empirical data from Singapore

The progressive edge of competition has moved from what was primarily a cost-based strategy through that which was quality-based, and then variety-based, and now, onto the time-based mode of competition. This paper presents a status report of the response of the Singapore manufacturing sector to such a progression in competitive paradigms. In particular, we will refer to empirical data from the latest Singapore Manufacturing Futures Survey to provide an update on the apparent status of the local manufacturing environment in terms of such current paradigms of competition. From these, we will draw some implications for operations management, that is, what should local producers and suppliers do in the light of such current modes of competition. Such implications may be of help to other manufacturing businesses operating in other countries.

Estimating and comparing learning curves in three Asian economies

This paper consists of two parts. In the first, a method is suggested to isolate the effects of scale economies on learning phenomena by integrating the conventionally specified learning curve with the production function in neoclassical economics. The problem of establishing the variable for measuring experience is dealt with in the estimation procedure. Using this method we estimated the learning curves of 20 industries in the manufacturing sector in Singapore using data taken from 1961 to 1991. More modern industries like electronics, precision instruments and pharmaceutics have steeper learning curves than older industries. Among traditional industries, the food and beverage industry has a greater learning potential than others. In the second part of the paper, the learning curves for 11 common industries in South Korea, Japan and Singapore were estimated and compared. The Japanese industries are found to have steeper learning curves compared to those in Singapore and South Korea.

The State and Foreign Investment

The influence of a host state on direct foreign investment attracts the attention of scholars much less than do the constraints of the latter on the former. This study addresses the impact of state regulatory policies on the roles of inward foreign investment in Taiwan and Singapore's manufacturing sector. The similarities between the two small Asian open economies are first discussed. The different roles played by the foreign investors in their economies are then compared. A review of the literature in orthodox theories and radical points of view reveals several possible explanatory variables for such differences. Through the logic of the “most similar systems” design, or method of difference, some seemingly plausible factors are ruled out, due to their similarities in the two chosen entities. It is found that some pull factors (such as geographic location, colonial legacy, external political environment, and indigenous industrial capacity) and conversion factors (such as state policies toward foreign investment) may be responsible for the differences between the two islands. A more detailed analysis is then given to the conversion factors in general and the state regulatory policies toward foreign capital in particular. Finally, some general hypotheses about the conversion factors in the host state-foreign capital relationship applicable to most industrializing countries are suggested for further testing in future studies.

Quality Control and Reliability Management—The Role of Production Engineers

This article presents some discussions on the role of production engineers in quality and reliability planning and control in the context of the manufacturing sector in Singapore. Superior productive efficiency in manufacturing can only be achieved through effective quality control and reliability planning. To be able to compete with other and more advanced countries, Singapore has to emphasise modern manufacturing methods, like automated, computer‐integrated and flexible manufacturing systems. Therefore, concerted efforts are now being taken to train adequately skilled and professional manpower to operate and manage such manufacturing systems. The role of production engineers in operating and managing the modern manufacturing systems has thus become more important and demanding.

Recent Changes In The Singapore Manufacturing Sector

The manufacturing sector in 1978 continued to grow as fast as the economy, at about 8% according to the quarterly index of industrial production which stood at 132 (1974 = 100) in the second quarter of 1978 as compared to 120 in the second quarter of 1977. It was the continuation of a recovery from the lean year of 1975 when the index was 91 in the second quarter but moved up to 104 a year later. The comprehensive indicator of manufacturing production is given by the annual census of manufacturing and, although the figures there are available only up to 1977, they show the same significant recovery from the slump of 1975 :