Measured in time, Singapore is two hours by air from Vietnam. Measured by the lives of ordinary citizens, it is a universe away. A city-state with fewer than six million people, Singapore boasts a standard of living that matches Canada’s. Few, if any, North American cities come close to Singapore’s success in urban design. This multi-lingual, multicultural city is home to some of the most dramatic and inspiring architecture on the globe, which was recently enhanced by McGill-trained architect Moshe Safdie’s dramatic ArtScience Museum. The Governor General received a tour of the Museum from Mr. Safdie on Sunday.
Singapore’s prosperity was never preordained. Expelled from Malaysia in 1965, it faced the threat of military invasion and the reality of high unemployment. Singapore had to devise a strategy to both build a nation and reconstruct its economy. Its population was small, with a territory about the size of Toronto. It had no significant natural resources, leaving it to depend upon its geography and the intellect and industry of its citizens. Singapore’s survival plan leveraged its strategic location and history as a port to become a regional hub. It also embarked on a program of industrialisation, building a world class manufacturing industry that, by the 1970’s, produced a high percentage of the world’s silicon chips. Since then, it has moved higher up the value chain, focusing on its knowledge economy and investing heavily in innovation. About 3,000 multinational companies operate in Singapore, and a number of Singaporean businesses rank among the global leaders in their sectors. The Port of Singapore is today the world’s biggest, surpassing Rotterdam and Shanghai.
The education system here is extensive and impressive. Literacy is widespread and the country’s universities rank well. Some of them have exchange or cooperation agreements with Canadian universities, including the University of Ontario Institute of Technology. The Governor General visited with both Canadian students and Canadian professors living here. And many Singaporean graduates of Canadian universities who have returned home maintain close ties with Canada. In recent years, however, other countries, particularly Australia, have been far more aggressive in promoting overseas education to students here.
Singapore’s per capita GDP ranks with Canada’s, although Singapore’s growth rate, particularly last year, significantly exceeds ours. But Singapore’s ranking on two other scales also provides interesting comparisons. First, despite its location in a part of the world where government corruption appears endemic, Singapore tops Transparency International’s global rankings of countries based on their freedom from corruption, placing ahead of Canada. Public officials are extremely well-paid and don’t finance their living standards through bribes, unlike much of Asia and Africa. This high standard of official integrity provides a welcome incentive for companies and investors looking to do business here.
The second index is less encouraging. While Singapore has an elected Parliament, its politics has been dominated by one party since the country’s founding. Critics of the administration can easily find themselves facing hefty penalties. Other laws can be also be harsh. The form you fill out to enter the country warns that the penalty for drug trafficking is death. Freedom House, which places Canada near the top of its ranking for political freedom, lists Singapore as “partly free.” Modern Singapore was built by a benevolent autocracy, and it is unlikely to opt for Canada’s political system anytime soon. Singapore offers businesses a strategic entry point into Asia. Its domestic market is small but wealthy, and the country plays a regional role far beyond its size. Singaporean business leaders and government officials are quick to mention that, because of Singapore’s small population, companies need to look beyond the country’s borders to grow. This reality forces the business community to be both international and bold. Despite harsh penalties, Singapore believes in the rule of law and has an independent judiciary. Its approach to business resembles ours, which makes it a favoured location for companies investing in other parts of Asia and needing confidence that their local partners will respect contracts. And Singapore can assist companies looking for those partners in the first place.
Manulife and a number of Canadian banks and other businesses, including CAE and Research in Motion, use Singapore as a base of regional operations. The Governor General’s final stop before returning home was a visit a CAE simulator used to train pilots for Singapore Airways.
What are the lessons to be gained from these snapshot visits to Vietnam and Singapore? The first is the most obvious: as it transforms itself, Asia is also transforming the world. Canada is underperforming here, in part because we are still seduced by the ease of doing business with our southern neighbour. Other countries, including Australia and the United States itself, are not so complacent. Second, Asia is a region of enormous diversity. Its countries cover the spectrum of economic and democratic development. To succeed here, you first have to do your homework and you need to devote the time, the patience and the financial resources to build relationships. Simply showing up with product specifications and a price list doesn’t fill order books here. Third, the Canadian brand is positive but weak. We have much to learn from the Australians, who package and promote themselves, leaving little doubt that Australian businesses and educational institutions are here to stay. In contrast, the Canadian presence is uncoordinated and inconsistent. We need to demonstrate that we’re much more than mounties and mountains. Fourth, the diversity of income levels, political freedom, and economic systems here shows that sound administration, the rule of law, open economies and visionary strategies make an enormous difference in the lives of ordinary citizens.
Finally, the Canadian successes here in finance, technology, engineering, culture and education demonstrate that what keeps us from playing a larger role on the international stage is a lack of vision and boldness, not a shortage of opportunity or talent. If we want to reach our full potential, we need to stop shooting for the bronze and go for the gold.
- Perrin
