THE COMMUNITY-HOUSEHOLD INDUSTRIES IN SINGAPORE

Abstract

This Academic Exercise discusses one form of industrial arrangement in the manufacturing sector - i.e. the Community-Household Industries (CHIs). In general, the CHIs refer to those industries comprising of numerous home-based enterprises that have a long history of existence, mobilising family labour and capital funds, and using labour-intensive and low-level technology methods of production. This sector which once used to be a common feature of Singapore's economic and social life, is now often forgotten and ignored because of their presumed lack of relevance and significance, especially after the transformation of Singapore into a modern and relatively developed economy. The changing size, position and role of the CHIs in the economy is a manifestation of the changes in the economic and social fibre of the people - results from the rapid process of industrialization and urbanization. This Academic Exercise attempts to fill up the vacuum in the literature in view of the dearth of any substantial research done on the CHIs in the Singapore context. It may be interesting to analyse the development of the sector in the industrial structure whose existence may not be consistent with the government's emphasis on high-technology, productivity, efficiency and high value-added. This exercise seeks to answer the following questions: (1) What does the term CHIs refer to? How are the CHIs characterised? What are the specific industries that can be included in the CHIs category? (2) How important are the CHIs to the Singapore economy? What is their position in the industrial structure? What are their economic contributions? (3) Can the CHIs survive into the future? How do they cope with the pressures and adjust to the changing environment? What are their problems? How can they solve the problems? (4) What is the role of the government? Does it help or hinder the CHIs? How can it promote and develop the CHIs so as to enable the latter to contribute more significantly to the national economy? Some of the major findings observed during the research include: (1) The CHls is a complex industrial arrangement, representing both the formal as well as the informal sector in the economy. (2) The government's policies and regulations have transformed the CHIs to such an extent that most of them are no longer the traditional type of 'cottage industries' production units. (3) The problems facing the CHIs are diverse and wide-ranging, resulting from both demand and supply factors. Therefore, the solutions for the problems must be as comprehensive, dealing with all aspects of production, management, marketing, etc. (4) Contrary to general beliefs, the CHIs are very much an important sector, although an obscure one, to the economy. Given appropriate support, the CHIs can survive, and thrive well into the future. Although limited in depth and comprehensiveness, which is necessitated by resource constraints, it is hoped that this study could act as a catalyst for further work on this 'vanishing' manufacturing sector in the ever-changing and progressing Singapore.