Economic Cooperation between Singapore and India: An Alliance in the Making? (Routledge Studies in the Growth Economies of Asia)

271 Pages·2008·1.79 MB·English

by  Faizal Yahya

Economic Cooperation between
Singapore and India
Asian interregional economic cooperation has assumed greater prominence
with the rise of Asia’s two giant economies of China and India. The eco-
nomic liberalization of China’s economy in 1979, followed by India in 1991,
signaled the presence of business opportunities to foreign investors—
including those from Asia. This book examines the growing economic rela-
tions between Singapore and India which has culminated in a Free Trade
Agreement (FTA), the Comprehensive Economic Cooperation Agreement
(CECA), signed by both economies in June 2005.
Using the information technology sector as the main case study of the
“alliance” between Singapore and India, the book examines the challenges
that both have overcome to expand their bilateral trade. In the process, Sin-
gapore has become one of the top five foreign investors in India. The CECA
is important as it is the first free trade agreement that Singapore signed with a
developing country; and furthermore it provided a blueprint for India to
conclude similar FTAs with other Association of Southeast Asian Nations
(ASEAN) members.
This book provides a competitive analysis for intra-regional foreign direct
investment. Faizal Yahya demonstrates that the economic relationship
between Singapore and India illuminates how both economies are attempting
to meet future challenges. It will be of interest to scholars of international
business studies, cross-cultural management, international trade, inter-
national relations, information management and South and Southeast Asian
Studies.
Faizal bin Yahya is Assistant Professor in the South Asian Studies Program at the
National University of Singapore.
Routledge Studies in the Growth Economies of Asia
1 The Changing Capital Markets of 9 The Politics of Economic
East Asia Development in Indonesia
Edited by Ky Cao Contending perspectives
Edited by Ian Chalmers and Vedi R.
2 Financial Reform in China Hadiz
Edited by On Kit Tam
10 Studies in the Economic History
3 Women and Industrialization in of the Pacific Rim
Asia
Edited by Sally M. Miller, A. J. H.
Edited by Susan Horton
Latham and Dennis O. Flynn
4 Japan’s Trade Policy
Action or reaction? 11 Workers and the State in New
Yumiko Mikanagi Order Indonesia
Vedi R. Hadiz
5 The Japanese Election System
Three analytical perspectives
12 The Japanese Foreign Exchange
Junichiro Wada
Market
Beate Reszat
6 The Economics of the
Latecomers
Catching-up, technology transfer 13 Exchange Rate Policies in
and institutions in Germany, Japan Emerging Asian Countries
and South Korea Edited by Stefan Collignon, Jean
Jang-Sup Shin Pisani-Ferry and Yung Chul Park
7 Industrialization in Malaysia
14 Chinese Firms and Technology in
Import substitution and infant
the Reform Era
industry performance
Yizheng Shi
Rokiah Alavi
8 Economic Development in 15 Japanese Views on Economic
Twentieth-Century East Asia Development
The international context Diverse paths to the market
Edited by Aiko Ikeo Kenichi Ohno and Izumi Ohno
16 Technological Capabilities and 25 Japanese Science
Export Success in Asia Samuel Coleman
Edited by Dieter Ernst, Tom
Ganiatsos and Lynn Mytelka 26 Capital and Labour in Japan
The functions of two factor
17 Trade and Investment in China markets
The European experience Toshiaki Tachibanaki and Atsuhiro
Edited by Roger Strange, Jim Slater Taki
and Limin Wang
27 Asia Pacific Dynamism
1550–2000
18 Technology and Innovation in
Edited by A. J. H. Latham and Heita
Japan
Kawakatsu
Policy and management for the
twenty-first century
28 The Political Economy of
Edited by Martin Hemmert and
Development and Environment in
Christian Oberländer
Korea
Jae-Yong Chung and Richard J.
19 Trade Policy Issues in Asian
Kirkby
Development
Prema-chandra Athukorala
29 Japanese Economics and
Economists since 1945
20 Economic Integration in the Asia
Edited by Aiko Ikeo
Pacific Region
Ippei Yamazawa
30 China’s Entry into the World
Trade Organisation
21 Japan’s War Economy
Edited by Peter Drysdale and Ligang
Edited by Erich Pauer
Song
22 Industrial Technology
31 Hong Kong as an International
Development in Malaysia
Financial Centre
Industry and firm studies
Emergence and development
Edited by Jomo K. S., Greg Felker 1945–1965
and Rajah Rasiah
Catherine R. Schenk
23 Technology, Competitiveness 32 Impediments to Trade in
and the State Services: Measurement and Policy
Malaysia’s industrial technology Implication
policies Edited by Christopher Findlay and
Edited by Jomo K. S. and Greg Tony Warren
Felker
33 The Japanese Industrial Economy
24 Corporatism and Korean Late development and cultural
Capitalism causation
Edited by Dennis L. McNamara Ian Inkster
34 China and the Long March to 42 The Vietnamese Economy
Global Trade Awakening the dormant dragon
The accession of China to the World Edited by Binh Tran-Nam and
Trade Organization Chi Do Pham
Edited by Alan S. Alexandroff, Sylvia
Ostry and Rafael Gomez
43 Restructuring Korea Inc.
Jang-Sup Shin and Ha-Joon Chang
35 Capitalist Development and
Economism in East Asia
44 Development and Structural
The rise of Hong Kong, Singapore,
Change in the Asia-Pacific
Taiwan, and South Korea
Globalising miracles or end of
Kui-Wai Li
a model?
Edited by Martin Andersson and
36 Women and Work in Globalizing
Christer Gunnarsson
Asia
Edited by Dong-Sook S. Gills and
45 State Collaboration and
Nicola Piper
Development Strategies in China
The case of the China-Singapore
37 Financial Markets and Policies in
Suzhou Industrial Park (1992–2002)
East Asia
Alexius Pereira
Gordon de Brouwer
46 Capital and Knowledge in Asia
38 Developmentalism and
Changing power relations
Dependency in Southeast Asia
Edited by Heidi Dahles and Otto van
The case of the automotive
den Muijzenberg
industry
Jason P. Abbott
47 Southeast Asian Paper Tigers?
From miracle to debacle and
39 Law and Labour Market
beyond
Regulation in East Asia
Edited by Jomo K. S.
Edited by Sean Cooney, Tim Lindsey,
Richard Mitchell and Ying Zhu
48 Manufacturing Competitiveness
40 The Economy of the Philippines in Asia
Elites, inequalities and economic How internationally competitive
restructuring national firms and industries
Peter Krinks developed in East Asia
Edited by Jomo K. S.
41 China’s Third Economic
Transformation 49 The Korean Economy at the
The rise of the private economy Crossroads
Edited by Ross Garnaut and Edited by Moon Joong Tcha and
Ligang Song Chung-Sok Suh
50 Ethnic Business 58 Unemployment in Asia
Chinese capitalism in Southeast Edited by John Benson and
Asia Ying Zhu
Edited by Jomo K. S. and Brian
C. Folk 59 Risk Management and
Innovation in Japan, Britain and
51 Exchange Rate Regimes in the USA
East Asia Edited by Ruth Taplin
Edited by Gordon de Brouwer and
Masahiro Kawai 60 Japan’s Development Aid to
China
The long-running foreign policy
52 Financial Governance in
of engagement
East Asia
Tsukasa Takamine
Policy dialogue, surveillance and
cooperation
Edited by Gordon de Brouwer and 61 Chinese Capitalism and the
Yunjong Wang Modernist Vision
Satyananda J. Gabriel
53 Designing Financial Systems in
62 Japanese Telecommunications
East Asia and Japan
Edited by Ruth Taplin and Masako
Edited by Joseph P. H. Fan,
Wakui
Masaharu Hanazaki and Juro
Teranishi
63 East Asia, Globalization and the
New Economy
54 State Competence and
F. Gerard Adams
Economic Growth in Japan
Yoshiro Miwa
64 China as a World Factory
Edited by Kevin Honglin Zhang
55 Understanding Japanese Savings
Does population aging matter?
65 China’s State Owned Enterprise
Robert Dekle
Reforms
An Industrial and CEO Approach
56 The Rise and Fall of the East Juan Antonio Fernandez and Leila
Asian Growth System, 1951–2000 Fernandez-Stembridge
International competitiveness and
rapid economic growth 66 China and India
Xiaoming Huang A tale of two economies
Dilip K. Das
57 Service Industries and
Asia-Pacific Cities 67 Innovation and Business
New development trajectories Partnering in Japan, Europe and the
Edited by P. W. Daniels, K. C. Ho United States
and T. A. Hutton Edited by Ruth Taplin
68 Asian Informal Workers 75 China’s Emergent Political
Global risks local protection Economy
Santosh Mehrotra and Mario Capitalism in the dragon’s lair
Biggeri Edited by Christopher A. McNally
76 The Political Economy of the
69 The Rise of the Corporate
SARS Epidemic
Economy in Southeast Asia
The impact on human resources in
Rajeswary Ampalavanar Brown
East Asia
Grace O. M. Lee and Malcolm
70 The Singapore Economy
Warner
An econometric perspective
Tilak Abeyshinge and Keen Meng
77 India’s Emerging Financial
Choy
Market
A flow of funds model
71 A Basket Currency for Asia Tomoe Moore
Edited by Takatoshi Ito
78 Outsourcing and Human Resource
Management
72 Private Enterprises and China’s
An international survey
Economic Development
Edited by Ruth Taplin
Edited by Shuanglin Lin and
Xiaodong Zhu
79 Globalization, Labor Markets
and Inequality in India
73 The Korean Developmental State
Dipak Mazumdar and Sandip Sarkar
From Dirigisme to Neo-Liberalism
Iain Pirie
80 Globalization and the Indian
Economy
74 Accelerating Japan’s Economic Roadmap to a convertible rupee
Growth Satyendra S. Nayak
Resolving Japan’s growth
controversy 81 Economic Cooperation between
Edited by F. Gerard Adams, Lawrence Singapore and India
R. Klein, Yuzo Kumasaka and An alliance in the making
Akihiko Shinozaki Faizal bin Yahya
Economic Cooperation between
Singapore and India
An alliance in the making?
Faizal bin Yahya
First published 2008
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
Simultaneously published in the USA and Canada
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This edition published in the Taylor & Francis e-Library, 2008.
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© 2008 Faizal bin Yahya
All rights reserved. No part of this book may be reprinted or
reproduced or utilized in any form or by any electronic,
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A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
A catalog record for this book has been requested
ISBN 0-203-92821-0 Master e-book ISBN
ISBN 10: 0–415–43116–6 (hbk)
ISBN 10: 0–203–92821–0 (ebk)
ISBN 13: 978–0–415–43116–3 (hbk)
ISBN 13: 978–0–203–92821–9 (ebk)
Contents
List of tables x
List of figures xi
Abbreviations and acronyms xiii
Acknowledgments xv
1 Singapore and Asian giants 1
2 Developmental states and big business 17
3 Incorporating economic development 28
4 Business challenges 41
5 Singapore and software clusters in Indian cities 63
6 High technology/information technology parks 80
7 Telecommunications 113
8 Construction and real estate 128
9 Ports development and logistics services 146
10 Civil aviation and airports 164
11 Conclusion: CECA and Singapore projects 181
Notes 192
Bibliography 227
Index 245