MOVEMENT OF LAND EXTENSIVE INDUSTRIAL USERS

Abstract

From the inception of Singapore's industrial programme, the Republic has constantly relied on foreign multi-national companies for investment and technology. However, the past thirty years have seen local entrepreneurs coming forth, establishing pioneer enterprises or acting as suppliers to larger MNCs (Multi-National Corporations) in a supportive capacity. With the liberalization of many East Asian Economies in the past few years, Singapore now faces increased competition in soliciting investments from abroad, and as such economic policy has now shifted towards attracting high-technology, high-value added industries such as wafer fabrication. In addition, with increasing demand from the residential sector and other civil development projects, the government is looking to optimize industrial sites by increasing plot ratios and height restrictions. At the same time, leading public officials and agencies have been encouraging local entrepreneurs to try and establish themselves overseas, forming an external wing for the Singaporean economy. These new shifts in Singapore industrial policy leaves a rather ominous question mark for industries in Singapore that produce low-value added goods and at the same time occupying valuable land, i.e. land extensive industries. These comprise mainly of building material firms and furniture manufacturers. The aim of this study is to examine the current trends in manufacturing, the behavioural patterns of decision makers, and the options open to these firms. The research focused primarily on industrial movement, i.e. the physical relocation or establishment new manufacturing plants. From the final analysis of data gathered, three paradigms concerning the attitude of decision makers, and the characteristics of firms have been identified. In considering expansion into overseas markets, which is the most idealistic of the available options, companies have cited the availability of out station staff as a major factor. In conclusion, local entrepreneurs should not let increasing competition both in the region and at home hamper expansion. Instead, these local firms should seek to find or create their own niche in the region forming a unique symbiosis, with Singapore firms contributing to the growth of the region. It is not enough that these industries attempt independent undertakings, but should be in tandem with a concerted government effort to extend the horizons of the Singaporean manufacturer.