Just read this Temasek Review article:
Point no.3 and no.4 talked about the weak SMEs in Singapore and
also the lack of entrepreneurial spirit.
3. Weak SME sector:
Due to the presence of heavy-weights supported by the state
which controls more than half of Singapore’s domestic economy,
Singapore’s SME sector is very weak compared to Hong Kong, Taiwan
and South Korea. SMEs in Singapore doomed to remain “small” and
have few chances of emerging from the shadows of these GLCs. Even
Singapore’s only internationally recognized brand name Creative
Technologies is founded in the United States and not in Singapore.
Taiwan has Acer, BenQ, TSM, South Korea has Samsung, LG and
Hyundai. What about Singapore? According to prominent U.S.
political economist Professor Huang Yasheng, “Singapore and
Malaysia had weaker domestic firms in part due to a deliberate
governmental bias against private local firms, mainly in the 1960s
and 1970s, so foreign firms held a more substantial relative
advantage. But in Taiwan, the government provided a sponsorship and
financing role, not a managerial role as in Singapore and Malaysia.
Capital in Taiwan and Hong Kong went to the most efficient firms,
including small, start-up entrepreneurial firms, and was not based
on the political or ethnic status of such firms.” (Source:
Harvard Business
School)
4. Lack of entrepreneurial spirit and flair among
Singaporeans:
The insular political system and rigid education system in
Singapore do not foster independent-thinking, creativity and
entrepreneurship among Singaporeans as these attributes require an
environment which allow for critical thinking and questioning of
authorities to develop and thrive. Many Singapore students are only
contented to secure a stable job upon graduation. Few will dare to
start new ventures on their own. The situation is further
exacerbated by the government offering scholarships to bright
college students which deprive the private sector of the talents it
so desperately needs. Though Singapore has one of the most educated
workforce in the world, Singaporeans are ill-suited for a
knowledge-based economy which require a completely different
mindset altogether. To quote from Professor Huang Yasheng again:
“Extremely attractive compensation packages in the public
sector also mean that the most talented people in Singapore want to
work for the government. The private sector is far less lucrative
and attracts lesser talents. In the long run, this will be
detrimental to the development of a vibrant private sector in
Singapore.” (Source: Harvard Business
School)