Paper, 29 pages, copyright: IISD
More information: http://www.iisd.org/publications/pub.aspx?pno=1270
In the mid-1960s, Singapore threw its doors open to foreign investors, luring them with generous tax benefits and other investment incentives. More recently, the Singapore government has turned its attention to knowledge-intensive industries in an effort to create employment, remain competitive in the face of rising wages and enable its own companies to move up the value chain. Investment incentives continue to play an important role in the government's strategy. This study examines whether the government's incentives to foreign investors – particularly financial incentives – have indeed helped to attract foreign investments and how these investments in turn have impacted employment creation, brought about economic diversification and generated spillover effects for the wider economy.