A Report on the Singapore Mission
September 13, 2010
GRIPS Development Forum, Tokyo

The GRIPS Development Forum, together with researchers and officials from Vietnam andEthiopia, visited Singapore from Aug. 29 to Sep. 3, 2010 to study Singapore’s experiencesin productivity improvement and skills upgrading as well as organizational aspects ofindustrial policy formulation and implementation. Findings of this mission will be provided toconcerned officials in developing countries including Ethiopia and Vietnam 1 . We also
gathered information on Singapore’s international cooperation in the industrial sector ofdeveloping countries. The mission had meetings with government ministries and agencies,
research institutes and universities, and Japanese organizations such as JCCI, JETRO, andJICA. It also visited a Japanese manufacturing company operated by Singaporeans.
The mission members consisted of Prof. Kenichi Ohno, Prof. Izumi Ohno, Ms. Sayoko Uesu
(GRIPS Development Forum); Prof. Daniel Kitaw (Addis Ababa University); and Ms. Nguyen
Thi Xuan Thuy, and Ms.Truong Thi Nam Thang (Vietnam Development Forum). In addition,
Mr. Le Mang Hung and Mr. Nguyen Quang Vinh (Ministry of Planning and Investment,
Vietnam), and Ms. Kumiko Kasai (JICA expert/SME policy advisor in Vietnam) joined themission (see attachments for mission schedule, places visited, and information collected).
We would like to express our deep appreciation to all organizations and individuals who
kindly received us and shared valuable information with us.
The main findings of the mission are as follows.
1. The current situation surrounding productivity
In recent months, productivity improvement has been resurrected as a high-priority national
agenda in Singapore. As the Singaporean economy came out of the global recession, thegovernment sees an opportunity to restructure the economy and maximize growth capability
in the post-crisis era which is characterized by rising China and India. The government
formed the high-level Economic Strategies Committee (ESC) chaired by the Finance
Minister in May 2009 with tripartite participation of government, labor unions, and industry2.
1This mission was commissioned by the Japan International Cooperation Agency (JICA) to compile
information on industrial policies in selected East Asian countries for the use of other developing countries.
Visits to South Korea and Taiwan are also planned in the near future.
2
The ESC was formed as one of the many ad hoc mechanisms for shaping economic future and long-term
development visions of the country. Under the committee headed by the Finance Minister and comprising of
25 members, eight subcommittees and several working groups were formed. Each subcommittee wasco-chaired by the representatives of the public and private sectors. For formulating key policies theSingaporean government does not produce five-year or any other regular plans.

1

The ESC submitted a final report to Prime Minister Lee Hsien Loong at the end of January
2010, which was officially launched on February 1, 2010. Envisioning “high-skilled people,
innovative economy, distinctive global city,” the ESC Report recommended a drastic shift
from factor-driven to productivity-driven growth. It set an annual productivity growth target of
2-3% and an average GDP growth target of 3-5% in the next ten years, and presented
seven key strategies to achieve these goals. The main thrust of the ESC Report wasendorsed by the Prime Minister and reflected in the FY2010 budget (starting from April 1).
One of the seven key strategies is “growing through skills and innovation.” To oversee anddrive the national effort to boost productivity and skills upgrading, the government
established the National Productivity and Continuing Education Council (NPCEC) in April
2010 (see Section 3).
While the Singaporean economy grew by an average 5% per annum over the past decade,productivity gains have declined in recent years 3 . According to the ESC Report, thecountry’s productivity levels in manufacturing and services are only 55 to 65% of those in the
US and Japan. In the construction sector, the productivity level is only one-third and one-halfof Japan and the US, respectively. According to many whom we interviewed, this apparent
low productivity in a country renowned for well-educated people and excellent policies wascaused by the existence of low-skill foreign workers and the old generation of Singaporeans
who received little education in the past, both of which bring down average productivity. In
terms of sectors, low productivity is observed in construction, SMEs, and certain services
such as retails, restaurants, and tourism.
Over the past decade, Singapore has become increasingly dependent on foreign workers,
including both highly skilled professionals and low-skill workers, which now account for
about one-third (or 1 million) of the entire workforce. Low-skill foreign workers compete withrelatively less educated Singaporeans on the job market. The ESC Report points out theneed to manage (i.e., gradually reduce) the country’s dependence on low-skill foreign laborand support continuous education and training of low-wage Singaporean workers. The
Report also emphasizes the importance of productivity growth to sustain high wages andhigh living standards which Singaporeans have come to enjoy, and urges the government toencourage enterprise innovation, investment in technology, and training to create better andmore high paying jobs.

3

In Singapore, productivity primarily means labor productivity or value-added per worker, reflecting thegovernment’s deep concern with sustaining high wages and high living standards for its citizens. As such, it
is affected by technology, capital accumulation, efficiency and waste reduction, systemic innovation, andtraining adopted by companies. Concerns about Singapore’s recent slowed down in productivity have been
also pointed out in Singapore Competitiveness Report: 2009 (foreword by Michael E. Porter) produced by
the Asia Competitiveness Institute of the Lee Kuan Yew School of Public Policy. This report also supports
the government’s ongoing effort to move towards an innovation-driven economy.

22. History of Productivity Movement4
Singapore was the first country where JICA provided comprehensive technical cooperation
called Productivity Development Project (PDP) to transfer Japan’s know-how in productivity
improvement. At the request of then Prime Minister Lee Kuan Yew, JICA implemented PDP
during 1983-1990. Subsequently, Singapore became quite successful in internalization,scaling up, and institutionalization of Productivity Movement. Its experiences should offer
useful insight for developing countries which plan to introduce similar projects.
Singapore’s interest in productivity dates back to the early days of independence, before theinitiation of JICA cooperation. In 1967, the National Productivity Center was establishedunder the Economic Development Board (EDB). In 1972, the Center was upgraded to a
separate agency, the National Productivity Board (NPB), and in 1996 was merged with theSingapore Institute of Standards and Industrial Research to become the Productivity
Standard Board (PSB). In 2002, PSB’s productivity-related functions were transferred to theStandards, Productivity and Innovation Board (SPRING). Separately, the Singapore
Productivity Association (SPA) was established in 1973 as an affiliated body of NPB with the
purpose of promoting active involvement of organizations and individuals in Productivity
Movement and spreading the idea of productivity and its techniques.
Table 1. History of Productivity-related Organizations
Period1964

Organization
Productivity Unit, EDB

1967-1972

National Productivity Center (NPC)- Autonomously-run division under EDB

1972-1995

National Productivity Board (NPB)- Statutory body, initially affiliated with Ministryof Labor and later with Ministry of Trade andIndustry (MTI)

1996-2001

Productivity Standard Board (PSB)- Statutory body, affiliated with MTI

2002-presentStandards, Productivity and Innovation Board(SPRING)- Statutory body, affiliated with MTI

Remarks
1965: Charter for Industrial
Progress, Productivity
Code of Practice
1971: Tripartite InterimManagement Committee(to prepare NPB)
1973-present:
Singapore Productivity
Association (SPA)
1981-85: awarenessstage
1986-88: action stage
1989-90s: ownershipstage

Productivity Movement in Singapore evolved in three stages: (i) awareness stage (1981-85);(ii) action stage (1986-88); and (iii) ownership stage (1989-90s). The awareness stage
aimed to create widespread awareness of productivity among companies and workforce.
4

This section is based mainly on the information provided by Mr. Low Hock Meng, Executive Director of theSingaporean Productivity Association and the former counterpart of JICA-supported PDP.

3

The National Productivity Council (NPC) was established in 1981, chaired by the State
Minister of Labor and with the participation of about 20 members from government,
employer groups, unions and academia, which reviewed productivity efforts and outlined
future strategy. Massive productivity campaigns were launched at both national andcompany levels. November was designated as “Productivity Month,” in which then Prime
Minister Lee Kuan Yew delivered annual speeches on productivity from 1981 for sevenconsecutive years. In the action stage, “awareness” was translated into specific programs to
improve productivity at the workplace, by introducing a management consultancy referral
scheme, model company projects, training of workforce through the Skills Development
Fund (see Section 3), and so on. The ownership stage assured sustainability of Productivity
Movement by launching many initiatives to encourage company-level productivity
movement. The Singapore Quality Award was introduced in 1994.
Throughout the three stages, NPB played a key role as the secretariat of NPC by providing
training and management consultancy, spreading quality control (QC) circles, promoting theconcept of productivity, and administering SDF. Key factors for successful scaling-up of
Productivity Movement included establishment of institutional mechanisms (including NPC),
strong support of key stakeholders (public sector, unions, and employers), and sharing
productivity gains among these stakeholders. JICA-supported PDP made important
contributions to this movement by sharing best practices, training NPB staff and company
workers, and developing manuals.
After PDP was completed in Singapore, NPB and JICA conducted joint training programs indeveloping countries in Asia and Africa until around 2005. In parallel, under the Singapore
Cooperation Program (see Section 5), SPA also provided cooperation to productivity
improvement in Botswana from 1991 for about ten years at the request of the President of
Botswana to then Singaporean Prime Minister Goh Chok Tong. Based on the experience of
PDP, SPA supported promotion of tripartite cooperation among government, labor, andindustry, staff training of the Botswana National Productivity Center, and implementation ofpilot projects. In its first phase, cooperation produced mixed results as it caused brain drainof trained staff. In the second phase, however, cooperation successfully strengthened the
Botswana National Productivity Center which has come to be regarded as a center of
excellence in Sub-Saharan Africa. For countries interested in introducing Productivity
Movement in Africa and elsewhere, a detailed study of SPA’s cooperation with Botswana
should be a useful guide for understanding how technical cooperation should be designed
for maximum impact and minimum brain drain.
3. Current industrial policy measures and organizations
The policy process in Singapore is characterized by: (i) tripartite cooperation among
government, labor unions, and industry, and (ii) a multi-sectoral and multi-functional
approach involving all relevant government ministries and agencies in good collaboration.

4

Regarding industrial policy measures, the Singaporean government takes both broad-based
and targeted/sectoral approaches. The government offers various incentives to encourage
enterprises to adjust and restructure by following (policy-adjusted) market price signals
rather than through quantitative quotas or direct subsidies to individuals.
Recent initiatives related to productivity, SMEs, and FDI attraction include the following.
(1) Measures for productivity and continuing education and training
As explained before, the National Productivity and Continuing Education Council (NPCEC)
was established in April 2010 to lead the national effort to transform Singapore into a
productivity-led economy. NPCEC is chaired by Deputy Prime Minister Teo Chee Hean anditsmembers

come

from

government,

business

community,

and

labor

unions.

Chairpersonship of DPM signifies the high priority accorded to the productivity issue. The
Ministry of Trade and Industry (MTI) and the Ministry of Manpower (MOM) jointly act as thesecretariat. Under NPCEC two layers of organizations are created including (i) the Working
Committee for Productivity and Continuing Education (WCPCE) led by the Permanent
Secretaries of MTI and MOM; and (ii) 12 sector working groups and horizontal thematic
working groups which are coordinated by responsible government agencies (see Figure 1).
Figure 1. Institutional Mechanism for Boosting Skills andEnterprise Productivity through National Effort
Direction set by
the Economic
Strategies
Committee’s Report

Chaired by Deputy PM
Members from ministries/agencies,
business, unions
Joint secretariat: MTI, MOM(ministers)

National Productivity andContinuing Education Council (NPCEC)
Oversight
Review & approval

Review & submit

Working Committee for Productivity andContinuing Education (WCPCE)
Sectoral “Productivity Roadmap”
for the next 10 years

Led by MTI, MOM (PS level)
Inter-agency coordination

Financial Incentives
Scrutiny

Draft & propose

National
Productivity
Fund

Productivity& Innovation
CreditSkills Dvt. Fund
Lifelong Learning
E.F.

Sector WGs (12 priority sectors)
Construction
BCA
UnionsIndustry

Electronics
EDB
UnionsIndustry

Precision Eng. Transport Eng. General Mfg.
EDB
EDB
SPRING
UnionsUnionsUnionsIndustry
Industry
Industry

F&B
SPRING
UnionsIndustry

Retails
SPRING
UnionsIndustry

OthersOthers

Cross-cutting issues
Low wage workers
Research & benchmarking
Infocomm and logistics

NPCEC has selected 12 priority sectors based on the criteria of the size of contribution toemployment and GDP and high potential for productivity gain. Each sector group formulates5

a productivity roadmap for the next ten years. These roadmaps are reviewed by WCPCE
and submitted to NCPEC for final approval. A ministry or an agency is assigned to oversee
each priority sector. For example, EDB is responsible for electronics, precision engineering,transport engineering, logistics and storage, while SPRING is responsible for generalmanufacturing, food and beverages, and retails. In addition, horizontal working groups are
created to work on cross-cutting issues such as low-wage workers, research andbenchmarking, and infocomm (ICT) and logistics. As usual, government, businesses, andunions participate in these sectoral and thematic working groups.
Table 2. Major Initiatives on Productivity and Continuing Education and Training (CET)
Policy area

Actions taken

Boosting skills and enterpriseproductivity through national
effort-Establishment of National Productivity and Continuing
Education Council (NPCEC)

Investing in people-Enhancement of Continuing Education and Training System-Introduction of Workfare Training Scheme-Enhancement of Workfare Income Supplement

Supporting enterpriseinvestments in innovation andproductivity-Introduction of Productivity and Innovation Credit-Establishment of National Productivity Fund
-Raising foreign worker levies

Supporting businessrestructuring-Introduction of tax allowance to defray acquisition costs for
qualifying mergers and acquisitions-Introduction of stamp duty relief for acquisition of unlisted
shares-Introduction of Land Intensification Allowance

Enhancing land productivity

Source: Sanchita Basu Das, Road to Recovery, ISEAS, 2010, Appendix IV, pp.190-200.

The government has committed to a total of S$5.5 billion over the next ten years to support
productivity initiatives. This includes S$3 billion for the National Productivity Fund (NPF) and
the Productivity and Innovation Credit (PIC) and S$2.5 billion for CET. PIC, a new tax benefit
scheme, is one of the broad-based supports. Under PIC, any enterprise in any sector iseligible for a fiscal incentive when they invest in productivity enhancement or innovation.
Specifically, they are entitled to a deduction of 250 percent of eligible expenditures from theirtaxable income with a cap of S$300,000 per activity. Meanwhile, NPF is a targeted support
which provides funding for productivity initiatives in specific industries or enterprises only.
Under the priorities and guidelines established by NPCEC, sector working groups propose
productivity initiatives which are reviewed by WCPCE.
Regarding Continuing Education and Training (CET), the previous system has been
expanded to upgrade workforce skills and competitiveness at all levels, by providing multiple
skills-based progression paths to complement the academic path, and by reaching out tomore professionals, managers, executives and technicians. Furthermore, the government
now encourages companies to retain and train workers (especially low-wage workers andolder workers) by introducing the Workfare Training Scheme and enhancing the Workfare

6Income Supplement Scheme. Companies can also receive financial support for employee
training from two sources: the Skills Development Fund (SDF) and the Lifelong Endowment
Fund (LLEF)5. Until 2008, SDF targeted only low-wage workforce, but more recently the
SDF Levy was broadened to cover the entire workforce. While all workers have access to
the CET scheme in principle, subsidies from SDF and LLEF are currently limited toSingaporean workers only.
(2) SME development
There are over 116,000 local SMEs in Singapore. SMEs account for 50% of value-added,
and 60% of the total employment6. Responsibility for SME development rests with MTI’s
Enterprise Division (policy) and SPRING (implementation). SPRING is an SME
development agency and a national standards and accreditation body.
The Singaporean government takes both broad-based and targeted approaches to SME
promotion. Broad-based approaches are implemented on a scheme base in collaboration
with business chambers and associations. There are five Enterprise Development Centers
located at business associations and chambers, where a team of business advisors giveface-to-face advice to SMEs on government assistance schemes applicable to SMEs,
finance, management, human resources, operations, etc. As part of this advisory service,
the Financial Facilitator Program has financial facilitators (composed of ex-bankers, financial
consultants, and advisors) who help SMEs to gain access to financing. Targeted approaches
are tailored to individual enterprises (which are usually relatively large SMEs). SME
managers can contact designated SPRING officers when necessary to seek advisory
services and resolve problems.
Singapore does not have the equivalent of Japan’s Shindan system (SME Management
Consultants System), an institutionalized and state-backed system for training, testing,registering, and renewing certified SME consultants (shindanshi) who advise on
management and facilitate SME finance (shindanshi’s reports on SMEs’ business plans are
regularly used by Japanese banks to evaluate loan applications). In Singapore, banks andmanagement consultants work independently, and it is the responsibility of banks’ loan
officers to assess and decide on loan applications. There is however the Practising
5

SDF was established in 1978 as an employer-based funding that provides financial incentives for staff
training. Through SDF, employers can enjoy course fee subsides of up to 90%, though the amount ofsubsidies depends on each course. All employers must pay Skills Development Levy for all workers up to
the first S$4,500 of gross monthly remuneration at a levy rate of 0.25%, or S$2 per worker, whichever ishigher. The Central Provident Fund collects the levy on behalf of WDA. The levy collected is channeled into
SDF, which provides grants to companies that send their workers for training. LLEF was established in 2001
with an initial capital of S$500 million and with the current total capital of S$2 billion. Interest earned fromthis endowment fund can be used to support various lifelong learning initiatives.
6
In Singapore, an SME is defined as a company with: (i) less than S$15 million fixed asset investment (formanufacturing), or (ii) less than 200 workers (for non-manufacturing and services). The government plansto revise this definition next year to align with international norms which use revenue-based definition.

7

Management Consultant (PMC) Certification Scheme, which gives formal endorsement on
the quality of management consultants (authorized by SPRING, WDA, and International
Enterprise Singapore). This system is modeled after the UK’s Certified Management
Consultant System. About 200 consultants have so far been qualified by the Certification
Board. Although more information is needed, a quick look at the training and examination
modules of the PMC Certification Scheme indicates that this scheme focuses primarily on
project management, finance, laws, and applications for government incentives, and less on
production management on the factory floor (which is covered by Japan’s shindanshi).
(3) FDI attraction
MTI’s Industry Division (policy) and EDB (implementation) are responsible for FDI attraction
and industrial development. The two work closely to attract FDI, foster “industry verticals”(suppliers of intermediate inputs), and enhance business environment. Singapore generally
ranks very high in the ease of doing business. It has consistently held the top position
among nearly 200 countries in the World Bank’s Doing Business Reports from 2007 to 2010.
EDB is a one-stop agency for FDI marketing as well as the hub of industrial development,
especially in transport engineering, electronics, precision engineering, chemicals,
biomedical sciences, logistics, healthcare services, education services, infocomm andmedia, professional services, and consumer businesses. It also promotes new areas ofgrowth such as clean energy, environmental technologies, bio-technology, and digital media.
In attracting FDI, EDB also combines broad-based approaches with targeted approaches. In
addition to improving business environment generally, it offers targeted, company-specificsupport and incentives based on individual negotiations. This is called the “Queen Bee”
approach where inviting the queen bee (an anchor firm) automatically brings a large numberof other bees into the country (similar to the “Canon effect” in Northern Vietnam). A good
example in this regard is the attraction of world-class aerospace firms such as Rolls-Royce,
Pratt & Whitney, ST Aerospace, to the Seletar Aerospace Park which was transformed froma secondary airport with an area of over 300 ha, which prompted arrival of related
maintenance and repair services.
4. Nanyang Polytechnic
Nanyang Polytechnic (NYP) is one of the five national polytechnics in Singapore. It wasestablished in 1992 and now has about 78,000 students. NYP provides both
Pre-Employment Training (PET, for students) and Continuing Education and Training (CET,
for current workers). Regarding PET, seven schools of NYP run 47 full-time courses forthree-year diploma in engineering, information technology, business management,interactive and digital media, design, chemical and life sciences, and health sciences. CET
at NYP offers formal diploma courses, customized courses, and degree programs with8

overseas universities. The government provides full funding for administration andoperations of NYP (minus tuition fees collected). Meanwhile, NYP is free to use its revenue
from services provided to industry for any activities or investments.
NYP has a strong link with industry. This includes: (i) preparing suitably trained graduates tomeet the manpower needs of industry; (ii) practice- and application-oriented training; (iii)“industry attachment” (internship) for students; and (iv) collaboration with industry anddevelopment agencies such as SPRING, Infocomm Development Authority, etc. NYP carries
out many industrial projects on a commercial basis in R&D, product design anddevelopment, and innovative solutions for industry, as well as teaming up with EDB to
support start-up technopreneurs. Such collaboration is “win-win” for both industry and NYP,
because industry can benefit from reduced cost and risk for R&D and start-up investment
and because NYP can have ample opportunities for staff capability development andstudent training in frontline technology in addition to earning money. Industry is represented
in NYP’s Board and Advisory Committees and participates in course development andreview. NYP’s reputation is firm and long standing among Singaporean manufacturers. It
cannot accept all cooperation applications from industry because it receives too many.
NYP is also active in international cooperation. NYP International provides consultancy
services including a World Bank Project in TVET reform (China) and cooperation with theSuzhou Industrial Park Institute of Vocational Technology (China). It also conducts training
programs for management staff and specialists of TVET institutions around the world.
In Singapore, manpower policy is formulated through close collaboration between
concerned official bodies and educational institutions. The National Manpower Council(NMC), a ministerial council headed by the Minister of Manpower, identifies the country’s
human resource needs in the medium to long run and maps out strategies to meet theseneeds. Various government ministries and agencies, including MTI, the Ministry of
Education (MOE), and EDB, participate in NMC. Based on demand projection and skills
mapping, NMC sets numerical targets for specific skills required by the country and decides
on the number and type of students to be graduated from universities and polytechnics overthe next four to five years. MOE provides funding to educational institutions for establishingnew courses if that is judged necessary. EDB may also provide additional funds to relevant
industries (e.g., aerospace) for upgrading its workforce.
5. Singapore’s international cooperation in the industrial sector
In 1992, the government established the Singapore Technical Cooperation Program (SCP)
to share the country’s development experience and public sector expertise with developing
countries. SCP is administered by the Technical Cooperation Directorate (TCD) of the
Ministry of Foreign Affairs (MFA), which is responsible for planning and executing various
training courses, seminars, workshops, and study visits in collaboration with domestic

9

agencies and foreign partners. In FY2009, about 300 such activities were organized, andthe number of SCP participants reached a record 6,729.
SCP is implemented in various channels including: (i) bilateral training programs, (ii) joint
training programs or third-country training programs, (iii) Initiatives for ASEAN Integration(IAI) Centers; and (iv) small island developing states technical cooperation programs.
Bilateral training programs are offered directly by Singapore to developing countries on agovernment-to-government basis, in the areas where Singapore has strength. Examples of
FY2010 training courses include private sector growth and FDI attraction (executing agency:
Civil Service College) and technical and vocational education and training (TVET) programsfor principals and instructors (executing agency: ITE Education Services). Since 1997, JICA
has managed the Japan-Singapore Partnership Program for the 21st Century (JSPP21) with
TCD/MFA. This included the joint training program on productivity management in theSouthern African Development Community (SADC) countries which was implemented
during 1997-2004.
Apart from SCP, the Singapore Cooperation Enterprise (SCE) provides fee-based technicalcooperation which does not fall within SPC’s responsibility. SCE was formed by MTI and
MFA in 2006 to respond to growing foreign requests to tap on Singapore’s development
experiences. It mobilizes expertise accumulated in the country’s public agencies and retired
civil servants and politicians on a project basis. SCE does not receive financial support fromthe government and charges fees for technical cooperation on a cost-recovery (non-profit)
basis.
The Singaporean government sees complementarity between ODA-based SCP andfee-based SCE, and uses them strategically. On a government-to-government basis, SCP isused as an entry point to share Singapore’s development experiences with developing
countries in general, which can lead to more specific country-tailored cooperation projects
conducted by SCE. Meanwhile, SCE can work with both government and non-government
clients in developing countries.
A good example is the ongoing cooperation with Rwanda. President Kagame has a strong
desire to learn from Singapore, a small and resource-poor country which, despite thesehandicaps, achieved impressive economic growth by building human capability.
Cooperation started with SPC-managed bilateral training programs, which subsequently
developed into various projects supported by SCE (e.g., workforce development and public
sector capacity building, and social security fund reform). Currently, SCE implements
cooperation projects in China as well as other countries in Asia, Middle East, and Africa.
6. Other visits
The mission visited the Center for Strategic Futures in the Strategic Policy Office, under the10Prime Minister’s Office. Detached from daily administrative works, this center conducts
long-term scenario planning from national and global perspectives and analyses chancesand risks that may affect Singapore’s future. Their exercises are inputs to setting broad
policy directions and determining Singapore’s future positioning. Similar divisions also exist
in different ministries to conduct scenario planning exercises in respective areas. These“future divisions” work closely with research institutes, universities, and other stakeholders
to collect information and facilitate vision-sharing. Singapore does not produce regularnational development plans (there was only one Five-Year Development Plan in the 1960s).
Instead, it does long-term vision formation and strategic planning through ad hoc andtask-based committees and councils (such as the Economic Strategies Committee and the
National Productivity and Continuing Education Council mentioned above) and scenario
planning by “future divisions.” Being a small and open economy, the government considers itvital to retain flexibility and ability to quickly respond to changing global environment.
Flexible strategic planning is possible thanks to high institutional capacity of civil servants
who are clean, purposeful, and able to translate policies into actions. The small size ofSingapore and its unique politics may also facilitate information sharing among all
stakeholders without political capture and serious conflicts of interest.
We exchanged views with the management team and faculty members of the Lee Kuan Yew
School of Public Policy at the National University of Singapore. At their invitation, Kenichi
Ohno gave a public seminar on “Industrial Policy in Africa: What and How East Asia Can
Teach.” The mission also visited the Institute of Southeast Asian Studies and exchanged
views with its researchers.
The mission also visited Yokogawa Electric Asia Pte. Ltd, a Japanese company producing
made-to-order equipment for factory automation such as distribution control systems,
transmitters, measurement instruments, and power supply units. The mission met with the
management team as well as toured the factory. Yokogawa started its Singapore operationin 1974. Since the late 1990s, Yokogawa Singapore has been run by Singaporeans only.
The company introduced QC circles in the early 1980s, and there are currently 14 active QC
circles with the participation of about 90% of the workforce. We were impressed with thestrong commitment of both management and workers to quality, cost reduction, andcontinuous improvement. Yokogawa Singapore won the 2010 Manufacturing Excellency
Award (EDB Award), and became the first among Japanese companies operating in
Singapore to receive this honor.

Attachments
1. Mission schedule
2. Organizations/persons visited
3. List of information collected11

Attachment 1

Mission Schedule (29 Aug.- 3 Sep. 2010)
1. Mission Members
Kenicni Ohno

Professor, National Graduate Institute for Policy Studies (GRIPS), Tokyo, Japan

Izumi Ohno

Professor, National Graduate Institute for Policy Studies (GRIPS), Tokyo, Japan

Sayoko Uesu

Research Associate, National Graduate Institute for Policy Studies (GRIPS), Tokyo, Japan

Daniel Kitaw

Associate Professor, Dept. of Mechanical Engineering, Addis Ababa University, Ethiopia
Researcher, Vietnam Development Forum (VDF) / GRIPS-NEU Joint Research Project,
Hanoi, Vietnam
Researcher, Vietnam Development Forum (VDF) / GRIPS-NEU Joint Research Project,
Hanoi, Vietnam
Director, The Assistance Center for SME - North Vietnam (TAC Hanoi), Enterprise
Development Agency (EDA), Ministry of Planning and Investment (MPI), Vietnam
Senior Official, SME Development Division, Enterprise Development Agency (EDA),
Ministry of Planning and Investment (MPI), Vietnam
SME Policy Implenentation Advisor / JICA Expert, SME Development Division, Enterprise
Development Agency (EDA), Ministry of Planning and Investment (MPI), Vietnam

Nguyen Thi Xuan Thuy
Truong Thi Nam Thang
Le Manh Hung
Nguyen Quang Vinh
Kumiko Kasai

2. Mission Schedule
DATE

1

2

3

4

5

6
7

TIME
ACTIVITY
PM Arrival
Aug 29 Sun
PM Short introductory meeting
AM Institute of Southeast Asian Studies (ISEAS)
PM Lunch meeting with mgt. team and professors at Lee Kuan Yew School (LKYS) / NUS
Aug 30 Mon PM Prof. Hui Weng Tat, LKYSPM JICA Representative Office at LKYS
PM Public lecture at LKYSAM Manpower Planning and Policy Div., Ministry of Manpower (MOM)
AM Industry Division, Ministry of Trade & Industry (MTI)
Aug 31 Tue PM Japanese Chamber of Commerce and Industry (JCCI)PM Industry Skills & Planning Office, Workforce Development Agency (WDA)
PM Dinner with Prof. Khuong Minh Vu (LKYS)
Human Capital, Planning, Strategic Planning, Energy & Chemical / Japan Desk,AM
Economic Development Board (EDB)
Sep 1 Wed AM Technical Cooperation Directorate, Ministry of Foreign Affairs (MFA)
PM Nanyang Polytechnic (NYP)PM Prof. Pang Eng Fong, Singapore Management University (SMU)
AM Enterprise Development, Research & Enterprise Div., Ministry of Trade and Industry (MTI)
AM Center for Strategic Futures, Public Service Div., Prime Minister's Office (PMO)
Sep 2 Thu AM JETRO Singapore Representative Office
Combined Session with Productivity Programme Office, SPRING and Singapore
PM
Productivity Association (SPA)AM Plant Visit to Yokogawa Electric Asia Pte Ltd
Sep 3 FriPM
DepartureSep 4 SatAM

Note:Among eight members, Kenichi Ohno, Izumi Ohno, Sayoko Uesu (GRIPS Development Forum) andNguyen Thi Xuan Thuy and Truong Thi Nam Thang (Vietnam Development Forum) are the members of the
JICA-commissioned study mission.

12

Attachment 2

Organizations/Persons Visited
The Government of Singapore
Organization
Ministry of Trade & Industry (MTI)

Ministry of Foreign Affairs (MFA)

Ministry of Manpower (MOM)
Economic Development Board (EDB)

Workforce Development Agency (WDA)

Public Service Division,
Prime Minister's Office (PMO)Standards, Productivity, and Innovation
Board (SPRING)
Singapore Productivity Association (SPA)

Name
Gaurav Keerthi
Tan Hual Tze
Cheong Wei Yang
Benjamin KW Koh
Koh Tim Fook
Denise Cheng
Mindy Low
Jane Lim Hui ChenJo Law Jiu Rong
Kimberly Quek
Matthew Lee
Vincent Kwek
Andre Heng
Anil Das
Chai Yee Yuen Lionel
Hee Gin Siang Kelvin
Aaron Maniam
Bernard Toh
Woon Kin Chung
Desmond Choo
Loo Ya Lee
Low Hock Meng
Chew Poh Hong

Position
Senior Assistant Director, Industry Division
Senior Assistant Director, Resource Division
Deputy Director, Industry Division
Deputy Director, Research & Enterprise Division
Director, Technical Cooperation Directorate
Assistant Director, Technical Cooperation Directorate
Technical Cooperation Officer, Technical Cooperation Directorate
Deputy Director, Manpower Planning & Policy Division
Assistant Manager, Manpower Planning & Policy Division
Director, Human Capital Division
Head, Planning
Assistant Head, Planning
Senior Officer, Energy & Chemical/Japan Desk
Senior Director, Industry Skills & Planning Office
Assistant Director, Industry Skills & Planning OfficeSenior Manager, Industry Skills & Planning Office
Head, Center for Strategic Futures / Deputy Director, Strategic Policy Office
Economist
Executive Director
Manager, Productivity Programme Office
Manager, Productivity Programme Office
Executive Director
Senior Manager, Marketing & Public Relations

Name
Stavros N. Yiannouka
Eduardo Araral
Charles Adams
Darryl S. L. Jarvis
Hui Weng Tat
Khuong Minh Vu
Wong Kang Jet
Toby Carroll
Omkar Shrestha
Sanchita Basu Das
Aekapol Chongvilaivan
Edward HoJohn Tan
Cher Thon Jiang
Pang Eng Fong

Position
Executive Vice-Dean
Assistant Dean (Academic Affairs) & Assistant Professor
Visiting Professor
Associate Professor
Associate Professor
Assistant Professor
Director of Strategic PlanningResearch Fellow
Visiting Senior Research Fellow
Research Fellow, Researcher for Economic Affairs, ASEAN Studies Centre
Fellow, Regional Economic Studies
Deputy Principal/Development
Deputy Principal/Technology
Director/Office for International Students
Professor

Name
Takaaki Oiwa
Michiyo Morohashi
Junichi Azuma
Masamitsu Okada
Wendy Hwee
Shigeki Maeda
Eiji Hisatomi
Masamichi Yamaguchi

Position
JICA Senior Fellow/JICA Representative in Singapore
Project Coordinator
Secretary General
Management Consultant for Japanese Enterprises
CoordinatorManaging Director
Deputy Managing Director
Senior EPA Advisor

Name
Lai Ah Keow
Chua Seng Kian
Clement Yeo
Yvonne Tong

Position
President
General Manager, Head, Manufacturing Center
General Manager, Production Control Centre
Assistant Manager, Managing Director Office

Universities / Research Institutes
Organization
Lee Kuan Yew School (LKYS),
National University of Singapore (NUS)

Institute of Southeast Asian Studies(ISEAS)
Nanyang Polytechnic (NYP)

Singapore Management University (SMU)

Japanese Organizations in Singapore
Organization
Japan International Cooperation Agency(JICA)
Japanese Chamber of Commerce andIndustry, Singapore (JCCI)JETRO Singapore Representative Office

Japanese Company in Singapore
Organization
Yokogawa Electric Asia Pte Ltd

13

Attachment 3

List of Information Collected
SourceMinistry of Foreign Affairs
Nanyang Polytechnic

Economic Development Board

Title

Heard Work: Stories of How EDB Steered the Singapore Economy from 1961 into the 21st Century, 2002
Ministry of Manpower

14

Lee Kuan Yew School of Public Policy,

PPT: Singapore's Labour Market and Manpower Strategies
Annual Report 2009
Government Assistance Programmes for SMEs
Spring News August 2010
PPT: The Singaporee Productivity Movement
Productivity @ Work
Achieve more with less through SME-PRO
DVD: Annual Report 2008
Success, A Career Kit for PMETs
The Key to Building Capabilities, an Employer's Handbook
Workforce Skills Qualifications System
Report of the Economic Strategies Committee: High Skilled People, Innovative Economy, Distinctive Global City,
February 2010.
Newsletter of the Lee Kuan Yew School, Issue 07 2010

National University of Singapore

Sigapore Competitiveness Report 2009

Institute of Southeast Asian Studies

Road to Recovery -Singapore's Journey through the Global Crisis , 2010

SPRING / Singapore Productivity
Associaion

Workforce Development Agency

Economic Strategies Committee"FDI, Finaincial Constraints, and Productivity： Firm Level Study in Vietnam""Learning by Exporting and High-tech Capital Deepening in Singapore Manufacturing Industries, 1974-2006"
Japanese Chambers of Commerce and Salary Survey Report 2010 (Japanese)
Industry
Personal data on Mr.Okada
Construction Productivity and Capability Fund (CPCF)
Construction Engineering Capability Development (CED) Programme
OthersAuthors / Publishers

Singapore Cooperation Programme Training Calendar 2010-2011
DVD: Singapore, a Global Citizen
PPT: Nanyang Polytechnic
NYP network, 2010, Issue 44 & 45
DVD: Prospectuｓ 2010-2011
Annual Report 09/10
Revolutionising Electronics
Nanotechnology in Singpore
Singapore - The Biopolis of Asia
Precision Engineering
PPT: Singapore Story

Pioneers Once More -The Singapore Public Services 1959-2009 , 2010

Lead Author: Chan Chin
Bock / EDB Singapore

Christian Ketels, Ashish Lall,
Neo Boon Siong / Asia
Institute
Sanchita Basu Das / ISEAS
Shandre M. Thangavelu,
Christopher Findlay, Aekapol
Chongvilaivan
Aekapol Chongvilaivan

Chua Mui Hoong /Straits Times Press