They're trying to encourage a more entrepreneurial mind-set among Singapore's citizens, and to lessen the penalties for financial failure. Technological universities are being exhorted to focus more on extracurricular activities and less on grades when making admissions decisions, and they're starting to use the Scholastic Aptitude Tests as a measure of academic promise. Unprofitable companies can now pursue a listing on the Stock Exchange of Singapore, which formerly required three years of profitability. Bankruptcy laws have likewise become more lenient. But there's only so much that can be accomplished by fiat, even in Singapore.
Larger investments can be harder to come by.
James Chan, for example, founded MG Logic, a maker of pen input devices two years ago. Chan sold his apartment to get start-up capital and then looked for venture funding last year. Only a few U.S.-based or international venture firms, such as Vertex Management and The Walden Group, have offices in Singapore. Traditionally, Chan says, funding has come from financial institutions such as Nomura Securities International and United Overseas Bank Asset Management. They go only for companies that are earning money.