ABSTRACT
Singapore forms an exception to the region in nearly all respects. In a predominantly rural archipelago it is overwhelmingly urban. It has achieved standards of living far in excess of its neighbours. This chapter focuses on vulnerability of Singapore. Singapore’s honest government, remarkably steady leadership, relatively successful attempts at nation-building and its obviously free economy stand as perhaps the brightest achievements of Southeast Asia’s fast growth period over the past two decades. Singapore’s adherence to unobstructed entry of foreign investors was now seen as having stifled local entrepreneurship. Biting criticism came from small-business entrepreneurs who, as part of a government sanctioned exercise in 1985 and 1986, delivered the sharpest of all reports from business groups convened to deal with the crisis. The extent of public ownership in Singapore also surprises outsiders. Foreigners tend to assume that Singapore’s devotion to the free market has led to avoidance of state ownership.
