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Singapore Management University

Batam

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Full-Text Articles in Social and Behavioral Sciences

Economics Of Competition': A Study Of Low-Cost Manufacturing Enclaves In Batam Island, Indonesia, Caroline Yeoh, Feng Hao Chua, Sylvie Tan Dec 2006

Economics Of Competition': A Study Of Low-Cost Manufacturing Enclaves In Batam Island, Indonesia, Caroline Yeoh, Feng Hao Chua, Sylvie Tan

Research Collection Lee Kong Chian School Of Business

Singapore’s transborder industrialization projects in China and India have received much attention. This regionalization initiative was intended to set in place a strategic configuration for the city-state to restructure its domestic industries and, pari passu, retain important linkages with contiguous, low-cost environments. Our study reports on Singapore’s pioneering, albeit lesser-known, project - Batamindo Industrial Park – in neighboring Batam Island, Indonesia, and finds that the strategic intent of this policy gambit remains stymied by non-economic, socio-political complexities in the host environment, and the economics of competition from other industrial estates in the vicinity of this prototype, remains to be addressed.


Embedded Co-Operation In The Context Of Singapore's Regionalization Program: The Batamindo Experiment Revisited, Caroline Yeoh, Adeline Kwan, Siang Yeung Wong Jan 2004

Embedded Co-Operation In The Context Of Singapore's Regionalization Program: The Batamindo Experiment Revisited, Caroline Yeoh, Adeline Kwan, Siang Yeung Wong

Research Collection Lee Kong Chian School Of Business

The development of Singapore-styled industrial parks has resided on the country’s ability to negotiate investment concessions at inter-government level, to provide superior infrastructure, and where existing, through the links to influential business groups in the investment location. Singapore’s first transborder industrialization project in Batam (Indonesia) reflects this stratagem. This paper revisits the debate on the attractiveness of the low-cost investment enclaves for multinational investments, with insights from Batamindo Industrial Park. Through evidence from on-site interviews and case studies, this paper concludes that while the project’s progress to date has been largely overshadowed by socio-political uncertainties in the host environment, its …