Singapore is a city-state without natural resources, but with the largest port in Asia and one of the strongest economies in the world. What does Singapore do well, and what can South Holland learn from it? Port economist Wouter Jacobs, who has been active in Singapore for ten years, advises thinking holistically and with a pro-business attitude.
"Singapore doesn't have natural resources, but it does have a strategic location on the Strait of Malacca," says Wouter Jacobs. "They're making the most of them. With attractive tax incentives and practical support, established through the Global Traders Programme, they're attracting international companies in world trade to set up regional headquarters in Singapore."
Complete ecosystem of jobs and knowledge
Moreover, Singapore is committed to vertical integration: not only transshipment and production take place there, but also the associated logistics, financial, and legal services. This creates a complete ecosystem that strengthens jobs and knowledge.
You might be able to produce raw materials for the energy transition with the same people and facilities.'
What would Singapore do if a chemical cluster, like the one in South Holland, were threatened with its departure? Jacobs: "Companies try to retain them by removing obstacles and developing new activities in a timely manner." Is that also the solution here in Rotterdam? Jacobs: "You might be able to produce raw materials for the energy transition with the same people and facilities."
Too little space and people
"On the other hand," says Jacobs, "if conditions are unfavorable for industry due to a lack of space, high energy prices, environmental taxes, and a shortage of people, then you have to ask yourself whether you can actually gain a comparative advantage."
You have to strategically link local assets to global production chains.'
Collaboration is crucial
According to Jacobs, the interaction between government and business is crucial. "Government officials in Singapore collaborate very intensively with companies, for example, with Shell's scenario team. The CEOs of the largest maritime companies form the Singapore Executive Maritime Board, which advises the government on strategic choices. Moreover, top talent from universities is more likely to work for the government instead of at consulting firms."
Dr. Wouter Jacobs is the founder and academic director of the Erasmus Commodity & Trade Centre and a port economist at the Erasmus Centre for Urban Port & Transport Economics, Erasmus University Rotterdam.
Text by Katja Hoiting
This article is from the new Leiden-Delft-Erasmus white paper 'The Economy of South Holland: Earning - Distributing - Changing'. Read more here.
