Recommendations
Based
on the strengths and weaknesses that face Singapore, below are several
recommendations for Singapore to become the high tech hub of the Asia
region. These recommendations
are listed below:
1.
Invest in education for the workforce
2.
Invest in software companies
3.
Limit off-shore resources for low-value jobs only
Education
Singapore
should invest in educating their citizens for careers in the high tech
industry. Unskilled workers who are employed in manufacturing primarily
dominate their workforce. Singapore
should encourage math and science degrees so the schools can produce a
workforce that can support their vision of being the high-tech hub of the
region. Unless Singapore
develops their youth for high-tech jobs, they will continue to rely on
other countries in the region for skilled work force.
Invest
in Software Companies
Singapore’s
economy is dominated by electronic hardware manufacturing. This type of manufacturing is actually hardware assembly,
where most the components are imported into Singapore and the components
are assembled in factories in Singapore.
Manufacturing of this sort relies on unskilled labor.
Other countries that have a large population of unskilled workers
could easily compete for this assembly work and offer lower wages, thus
reducing the price of the hardware. Rather than continue to invest in hardware manufacturing,
Singapore should focus on software development.
Software development is not as easy to replace since it is more
reliant of educated workforce than any other resource.
Off-Shore
Outsourcing
Singapore
should not rely on offshore outsourcing in countries like India to employ
workers in an industry like software development.
Instead, Singapore should build those skills within their country
and only rely on offshore outsourcing for low-value jobs such as assembly
and manufacturing.