Prelude

In the early part of the 1990's, Singapore's government commissioned a study to be done on potential future markets. Out of this, in 1991, a plan called IT2000 was developed. IT2000 was a study to see how IT could be used to improve business performance in Singapore. This was in the days before the Internet, before anyone knew what a browser is let alone a website. Executives from 11 major economic sectors participated in the study for IT2000. IT2000 is what started Singapore on its current path to be the e-commerce hub for Asia.

Singapore was one of the first countries in the world to understand what the Internet and the infastructure of support, can do for an economy. Singapore is one of the only countries in the world to have a well-balanced approach to the use of the Internet, with consumer, government and business, all working in an almost scripted unity to obtain their goals. Singapore One, (One Network for Everyone) was created as a way for Singaporeans to carry out secure bank transactions, buy goods and conduct business in the information age. Singapore One has become an integral part of the information backbone of Singapore and a vital key piece to its future success.

The Strategy

Singapore has taking a number of legal, social and economic steps to obtain its goal. Singapore's government has a five-pronged strategy to ensure success, RD, expertise, law, education and promotion.

In the area of RD, the government has built a new science park in Buena Vista, the Western part of Singapore, to conduct RD and to develop the countrywide network. Singapore is encouraging companies from other countries to have an office in Singapore with the lore of highly skilled labor and a high standard of living.

Expertise, Singapore has developed a $1 billion USD fund to help companies set up shop in Singapore and develop it's own brand of e-commerce companies. It has encouraged Singapore companies to go into partnerships with US companies to help advance the global presence of Singapore's own brand of e-commerce. The government is also making changes to the law to make it easier for entrepreneurs to set up shop even if they already have failed in the past.

Law, as mentioned, Singapore is changing its laws, slowly. Laws are being developed that will help deal with online issues and problems that are unique to the are of information systems. Entrepreneurs are finding it easier to set up shop and finding a much more willing government to aid them.

Education in Singapore is getting a face-lift thanks to e-commerce. In the past, Singapore's education system was heavy on the math and sciences. Now Singapore is finding that life is not all math and science and that an education system that has more liberal arts is better for the students to prepare them for the new economy. The traditional rote learning is now having to share class time with more creative and thinking skill subjects. Singapore is trying to put emphasis on problem solving, creativity and littoral thinking. In addition to changing the education of students, Singapore is encouraging hands on computer training for all students with 30% of the curriculum done on computers by 2002. More computers for classrooms are also planned with the goal of one computer for every two students and grants for teachers to get their own computers.

Promotion of Singapore's e-commerce is coming in many forms. New laws have been passed requires Internet connection in every new home built. Also increasing awareness of the Internet and the benefits through the press and the Internet has increased public awareness and activites with the Internet. Companies are being encouraged to find ways to add new services with the use of the Internet.

Problems

Singapore does have a nice program in place to aid future growth. But there are problems with Singapore's approach and it's current economic and political situation. Even though Singapore has made conditions easier to start an e-commerce company, the barrier to entry is still high. Singapore has one of the highest standards of living in the world, which is great if you are a working stiff. But for the small business owner wanting to start a business, it is a big barrier to over come. High labor cost and real estate cost still make Singapore a hard sell for many. Singapore has a cheap network, which is great, but the extra costs of business can be discouraging. Add to that the brain drain still going on. Some top-notch programmers and engineers are still leaving Singapore for what they consider, greener pastures. Keeping these top talents in Singapore could prove to be very costly.

Another problem area is the government's dominant role in business. On the one hand it helps keep things moving smoothly but the same hand can smack a business across the face. The government does everything for people, it is hard to foster an entrepreneurial culture in an environment where the government sets the tone and you just follow. This could come back to haunt Singapore, spending billions on macro strategy while forgetting about the little guy and how to feed his fire for success, which is one of the driving fundamental forces to the net economy.

Some say what gives Singapore the advantage is a cheap network for companies to use and an English speaking workforce, but if that is all Singapore can cough up for advantages, then place your bets on Malaysia.