globalization

- transcends geography
- spreads language
- large MNC's
- importance of talent
- global terrorism
- global production chains
(global trend: breakdown of multilateral trade agreements)

challenges

- edge of location diminished
- edge of language diminished
- terrorism associated with region
- regional giants (china, india) offering  low cost production
- need to establish self in niche of produuction chain

opportunities
- constraints of size/resources diminishedd
- foreign talent more mobile here
- link up with growing economies (china, iindia), exploit racial diversity
+ 7 hour flight radius
>> fta's
- batam-bintan arrangement
- strong presence of MNC's which can be baase for R&D

domestic

challenges
- high growth time over (tapering off)
- reliance on US
- reliance on electronics
- restructuring in order
- more welfare: aging pop
- land costs
- electricity imported
- water imported

advantages
- sound macroeconomic situation

solutions
- lower direct taxes, more indirect taxes  (GST raise)
- reducing costs: CPF cut, flexiwage
- reducing costs of telecoms, power, land,, etc infrastructure
-entrepreneurs
- getting GLC's to go multinational, leadiing SME's in clusters
- rationalise small traditional companies  with no global potential
- body to link innovation to commercializaation
- retraining