Talent Development and Mobility:

The case of SingaporeArnoud De Meyer

Singapore Management University

20/01/2012

What is the Challenge?• GDP growth of 3 to 5% is healthy level for a maturing industrial

economy. It generates the resources needed for social investments in health, education, schemes for income redistribution and safeguarding security, in particular in a country with an ageingpopulation.

• 2 to 3% of that growth may come from productivity improvements. The rest will have to come from adding (skilled) labour to capital

• In countries e.g. Singapore with no real unemployment, the additional labour will have to come through the attraction of foreign talent

• In the case of countries with some unemployment:– there is still a high need for constant restructuring and re-equipping labour with new

skills– and in the case of a small country you cannot have the arrogance to think that all

forms of talent will be present locally

Therefore there is a constant need for talent development and mobility

Singapore as a case study• Short reminder of some statistics and facts• The challenge for a small country without natural

resources• A ‘quick and dirty’ competitive analysis• A subjective view on the actions proposed and taken

by the government• Challenges and caveats• Some comments by an “inside outsider”

Singapore: facts and figures (2010)GDP US$ 222.7 billion

GDP (PPP) US$ 291.9 billion

Growth in 2009 -0.8%

Growth in 2010 14%

Growth in 2011 5%

GDP per capita in US$ US$ 62,100

Population (2011) 5.18 Million, of which 3.25 Sin citizens

Unemployment (2010) 2.2%

Government budget (expenditures) US$ 32.31

Manufacturing as % of GDP 28.3%

Surface Area 710 sqkm

Cross Country Productivity comparisons (2009): there is room for improvement in Singapore

The Competitive Context• No natural resources, except for hardworking people with a

“Confucius based” work ethic and a mercantile culture• A challenging neighborhood, but a strategic position• Good governance and an efficient system of professional

services (legal system, arbitration, professional accountants,…)

• Excellent infrastructure, in particular port, telecommunications, road system, education

• Strengths in activities related to the port, petrochemicals, electronics, pharmaceuticals, financial services, tourism

Singapore: Facts and Figures• Export dependent on some large countries:

• Malaysia 11.9%• Hong Kong 11.7%• China 10.4%• European Union 9.8%• Indonesia 9.4%• US 6.5%• Japan 4.7%• South Korea 4.1%

• Exchange rate based on a basket of currencies (Euro, Yen, US$)

• A very open and efficient economy

A partial view of the government’s actions

• Based on the proposals of the Economic Review Committee (ERC, 2001) and the Economic Strategies Committee (ESC, 2010)

• ESC: a deep conviction that success is built on a combination of:– High skilled people– Innovative economy– Distinctive global city

“We must make skills, innovation and productivity the basis for sustaining Singapore’s economic growth. This will also provide for inclusive growth, with a broad-based increase in the incomes of our citizens. We must also be a vibrant and distinctive global city – open

and diverse, the best place to grow and reach out to a rising Asia, and a home that provides an outstanding quality of life for our people.

The essence• A belief in economic growth• Through innovation and skill development• Leading to higher productivity• And attracting people to a vibrant quality of

life• In order to be a major player in the

surrounding Asia

Actions • Upskilling the workforce through continuing education and training• Stimulate companies to use more technology, and to reorganize work to create

better and higher paying jobs• Encourage dynamic restructuring of companies: no industry will survive

forever• Attract foreign talent, not to lower labour cost, but to enhance talent pool

– If access to labour is too easy, companies have little incentives to enhance productivity

– Pricing is used as a mechanism to regulate flow of foreign labour• “But it remains critical for Singapore to continue attracting highly capable and

entrepreneurial people from around the world. They complement home grown talent and add to the critical mass of talent in science, engineering, design, finance and start-up capacity”

• Invest in top quality education• And enhance R&D (goal: 3.5% of GDP by 2015)

More specifically….• Invest in Universities and attract the best providers

and students from around the world:– INSEAD, MIT (SMART), Chicago, ESSEC, Tisch,…– Alliances: NUS-Yale, NUS-Duke, SMU-Wharton, NTU-

Imperial– New Universities: SMU, SUTD, SIT– And research teams from overseas universities (CREATE)– Attracting “whales” (leading scientists)

• Invest in R&D– a commitment by the government to spend Sin$ 16.1 Billion

from 2011 to 2015 on Research, Innovation and Entreprise– Based on the advice of an international group of experts.

Not forgetting the private sector• Focused talent attraction • Creating favourable conditions for corporate

universities• Building Singapore as a focal point for

grooming of international leadership (HCLI)• Helped by a one stop shop: EDB

The result in terms of foreign talent:

Conditions: a partial view!• Increasing quality of life:

– Singapore wants to become a life style hub– Development of economically- and socially vibrant districts– Facilitate lifestyle, creative and arts business– Thought leadership in urban planningand solutions– Ambition to become the leading cultural capital in Asia– New hub for design innovation and creative entreprises– Engagement of talent on a social and emotional basis

• A high level of security and safety: the government is tough butpredictable

• Many cities in India and China have a similar talent pool but miss the diversity of Singapore (or London or New York)

The Caveats• Popular unease with the fast pace of expansion• Dependence on an elite of internationally mobile

scientists leads to volatility• Pressure on the infrastructure (transport, housing,

education)• Commitment by the growing population to the Singapore

model and compact is not guaranteed• Difficulties of integration: Chinese versus ‘China-man’• Complacency among the younger generation that grew

up under comfortable conditions, and changing value systems

Other Models• Australia: immigration and education as a business• Malaysia: emulating the Singapore model in selected

and concentrated areas e.g. Iskandar• Korea: developing internationally attractive

universities• United Kingdom and France: education as a vector

of cultural integration

My very personal take on it• Well managed diversity can be very beneficial to the

economy• The three key success factors for successful

integration are good governance, excellent and fast legal systems and high quality of life

• Institutions that were very flexible and adaptable, leading the way for constant restructuring

• Transparency in planning and accountability• High quality education for all