ABSTRACT
Singapore and Malaysia were among the first countries in Southeast Asia to seize the opportunities presented by the internationalization of production. This chapter analyzes the processes, focusing on state and firm responses to changes in external and domestic conditions. Singapore has gone through two major processes of adjustment within this regional context. These involved the in situ reorganization of production and a geographical reorganization of economic activity in the region. Since its independence in 1965, Singapore's economic development has been characterized by continuously high growth rates, a structural transformation of its economy, a prominent role for international capital, and a strong state influence on the economy. By the end of the 1970s, Singapore had a tight labor market in spite of its high labor-force participation rate. The chapter considers the effects of the Asian financial crisis of 1997-1998 on the regional strategies of industrial development.
