Singapore^s State Capitalism and its Contributions to the Neighboring Countries^ Economy
Lili Yulyadi Arnakim(a*), Albertus Xaverianus (a), Roseno Aji Affandi (a), Dayu Nirma Amurwanti (a)

(a) Department of International Relations, Faculty of Humanities, Bina Nusantara University.
* yulyadi[at]yahoo.com / lili.yulyadi[at]binus.edu

Abstract

Singapore has undergone extraordinary economic development since its separation from Malaysia in 1965 to become an independent and sovereign state. The said autocratic governance has introduced some approaches to ensure its survival as a city state and sustainability of its economic development, notably through adopting the so-called state capitalism, open trade, and globalization. Relying on both primary and secondary data, this paper examines how far Singapore^s state capitalism has contributed to economic development of its neighboring countries, particularly Indonesia and Malaysia, by looking at their trade relations and flow of Foreign Direct Investment (FDI). It was found that Singapore^s remarkable growth and prominence in international arena is not only advantageous to its own state, but Singapore also spurs the economy of Indonesia and Malaysia by becoming one of the major trading partners and investors in the two countries.

Keywords: State Capitalism, Open trade, globalization, foreign direct investment, Singapore

Topic: Economic, Business and Technology