ABSTRACT
The relationship between the state and industry is the first point of departure in Hong Kong and Singapore's approach to economic management. The state mainly provided solid infrastructural supports, an efficient administrative and legal system, and even embarked on offering various social services which had the effect of facilitating the reproduction of labor power. While industrialists continued to complain about the inadequacy of state assistance to industries, changes in China had reduced the urgency for overhauling the state's industrial policy. The influx of legal and illegal immigrants from the mainland eased the upward pressures on manufacturing wages. In summary, the colonial state has refrained from pursuing a sectoral industrial policy that gives priority to manufacturing in the allocation of resources. It offers ample support and incentives for private capital accumulation in general while refraining from interfering with the flow and distribution of resources and capital across different sectors.
