MTI Dialogue Session (all posts)

Question: I joined NUS and there were lots of PRCs. This was the last thing I wanted to see, since I am from China.

I feel bad because a few days after joining NUS, I heard PRCs talking on the bus about how to break their bonds. It made me feel sick.

I've studied in Singapore for 8 years, 4 in ACS, and am grateful. I can't make promises but I'll come back and contribute if I can.

I ask my friends why they want to leave and they say they cannot fit into the culture so they just come here for a university education. Doing projects with Singaporeans, I find they're too conservative and hold back. They don't like to mix with foreigners so we should mix with them more.

With the rise of China and India I am reminded of a Credit-Suisse advertisement: "not competition but partnerships". It's not a Zero Sum Game.

I am jealous of Singapore because the government pays locals to go to China and India for internships. You don't see this happening in China and India.

Manufacturing is 27% of Singapore's economy now. In 5 years which sector will dominate and how do you decide?

Answer: Overseas students come here with the view that they should just study and go back. We have the home ground advantage so we are obliged to make the first move.

We want to keep manufacturing because it provides jobs, and more jobs than services, due to the fixed investment multiplier (?). We want to attract high end manufacturing. eg Semi-conductors - we don't just do wafer fabrication now but wafer coating (to improve conductivity and reduce heat). Shell's cracker is high end and a huge uinvestment. We also are looking into environment and water and finance.

We're trying to avoid hollowing out like Hong Kong, which has only services now. We need balance.

Question: Since you're promoting finance should we all go study Business?

China and India are cheaper for the lower end so how do we compete?

Answer: I've yet to meet an MNC which says it does all its business in one country. You need to diversify risk and secondary locations also give flexibility.

For high end jobs, in India and China they're paid on a world scale - in Shanghai the pay is just slightly discounted from New York/London salaries. The cost differential is not that much. Major cities are very tight with respect to labour. Meanwhile it's tricky to relocate outside Shanghai.

This is also happening in Bangalore with IT professionals; in 5-10 years it won't be cost differentials anymore.

Not everyone should do business because a lot of people who're engineers by training go into finance. Humanities people too. You need some direction in your degree without being too rigid, and get portable skills.


Ending of the dialogue session: Be optimistic, but not complacent.