In the present era, ubiquitous globalisation has bestowed the greater mobility of human, capital, as well as technology. It has allowed businesses to run not only in the domestic market but also in the global market. Therein lies the contentious issue that whether Singapore has experienced a positive impact from the cooperation in businesses between Singapore and other countries. Multi-national businesses have certainly had benefits such as economic growth, better standard of living and a competitive workforce to Singapore. Nevertheless, it would be a myopic view and turning a blind eye to reality because such businesses may cause negative impacts too if it is left uncontrolled. But, despite the above-mentioned problems, measures have been put in place to mitigate the ill effects of multi-national businesses and to ensure that Singapore continues to accentuate the positive impacts derived from having multi-national businesses.
Firstly, multi-national businesses such as having Multi-National Corporations (MNCs) in Singapore have promoted wealth and success in Singapore. In the past, especially before the 1970s, Singapore was considered a developing country and even a Third world country due to the poor states with the high unemployment rate. The pervasiveness of globalisation has granted greater mobility of capital where MNCs such as Microsoft, Adidas from the west invested in Singapore to open up their businesses in the Asia region. Statistics have shown that the presence of such MNCs in Singapore has contributed significantly to the wealth and success of the Singapore economy. The presences of thousands of MNCs have boomed the Singapore Gross Domestic Product (GDP) by more than tenfold since after Singapore was granted independence decades ago. On the national level, Singapore’s society has had indeed benefited from such multi-national businesses.
Moreover, on the individual level, the MNCs create employment for the locals such that Singaporeans enjoy better material standard of living. MNCs require the locals to help them to operate their machineries and to do work so as to produce goods and services for them. This has brought down the high unemployment rate in the 1970s and 1980s – where MNCs were uncommon – to the current low and healthy unemployment rate of 3%. In addition, GDP per capita that measures the average income of a household has increased remarkably over the past decades. On average, this implies that every household are earning more than the past and able to afford more goods and services to satisfy their needs. With the absence of humongous number MNCs, the improved employment rate and better standard of living would not have been possible.
Secondly, multi-national businesses have created greater social diversity and tolerance in Singapore. The increasing interaction among countries has allowed greater levels of cultural exchange and diversity. This leads to a greater understanding and tolerance of other cultures, thereby promoting social cohesion in the country and more importantly, better cooperation at the international levels. Multi-national businesses have allowed Singaporeans to communicate and socialise with other ethnic or racial groups. This has narrowed the misunderstanding or the misconceptions among the groups, leading to a greater mutual understanding and respect towards each other. Take, for instance, the well-known racial tension in the 1970s, among different ethics and religious groups in Singapore. This riot consequently caused great social instability as they were lack of understanding and sensitivity towards one another. Today, coupled with the government’s capability in leading the country by promoting appropriate policies such as to celebrate racial harmony, the MNCs has also attributed Singaporeans to be more tolerant about other races as interactions with other countries increases, thereby bringing in a positive impact on Singapore’s society.
On the other hand, environmental and health issues are the ill effects of multi-national businesses. The multi-national businesses, especially in the 1980s, set up manufacturing industries in Singapore to produce textiles and many other electronic products. Such productions of goods are evidently burning fossil fuels that are contributing to the rise in air pollution level. It has caused severe health problems to the locals such as the increased risk of having breathing difficulty and even cancer. ‘Sick’ workforce may adversely impact the economy as people tend to be less productive.
Moreover, multi-national businesses can diffuse the national identity of Singapore and disrupt social cohesion as well. The increasing interactions between countries have inevitably made the locals be vulnerable to foreign values and lifestyle as globalisation continues to take place. The world has become borderless. Singaporeans comprising of the young professional and entrepreneurs no longer limit their capacity within Singapore only. The world has become what they think they belong to. Moreover, the indispensable new media such as the internet has been effective in influencing people to seek opportunities or better lives in other countries. This loss of national identity may cause these young talents in Singapore to move overseas to venture for a better life and thus causing a brain drain in Singapore society.
Nevertheless, the government of Singapore has unremittingly implemented appropriate policies to tackle such ill effects of multi-national businesses. Structural changes to the economy to the knowledge-based economy are evident to reduce pollution. The building of Biopolis and Fusionpolis to conduct Research and Development has enhanced the searching ‘cleaner’ fuel to replace fossil fuel. Furthermore, a national event such as the National day parade has reinforced what is meant to be a Singaporean which simultaneously reinforcing national identity. All these efforts made by the government are to mitigate the problems that outsiders may bring into Singapore.
All in all, multi-national businesses have had both positive and negative impacts on Singapore’s society. However, upon closer scrutiny, the negative impacts have been tackled effectively by the government so as to highlight the positive impacts with having minimal problems to the society. In addition, the Singapore government and the citizens should ceaselessly be prepared and be alerted upon the unprecedented challenges ahead in the future to reap the maximum benefits and negligible harms that multi-national businesses may bring about.