S'pore losing export edge to neighbors<\/p>\n
SINGAPORE (AFP): Singapore is losing ground in export
\ncompetitiveness against emerging \"tigers\" Malaysia and Thailand
\nbut gaining against East Asian and industrial countries,
\naccording to results of a study published yesterday.<\/p>\n
The Business Times said that based on a \"relative export
\ncompetitiveness index\" developed at the local Nanyang
\nTechnological University, Singapore was losing against fellow
\nmembers of the Association of Southeast Asian Nations (ASEAN).<\/p>\n
The index measures the difference between a country's export
\nprices and those of its competitors in their common markets in
\nU.S. dollar terms.<\/p>\n
This was said to be a more accurate measure than mere
\ncomparisons of labor unit cost used by the government.<\/p>\n
The issue of eroding competitiveness was a key concern at a
\nmeeting of Singapore policy-makers and academics on Wednesday,
\nthe newspaper said.<\/p>\n
But Singapore, whose main industries include electronics,
\nchemicals and services, was found to have sharpened its edge
\nagainst East Asian countries like Hong Kong and Taiwan, and
\nindustrial nations belonging to the Organization for Economic
\nCooperation and Development (OECD).<\/p>\n
Analysts say Singapore has to contend with rising wages and
\nother costs as well as the strong local dollar in competing with
\nneighbors, but offers stability, clear rules, a strike-free
\nenvironment and superior infrastructure.<\/p>\n
On another area in which Singapore has lost ground -- the
\nretail sector -- the daily said an economist warned that the
\ncity-state must find ways to lure back local shoppers who have
\nfound it cheaper to engage in their favorite pastime overseas
\nthan at home.<\/p>\n
Because of the strong Singapore dollar, high rentals and
\nsoaring salaries of sales personnel, Singaporeans now find it
\ncheaper to go to new shopping meccas like Bangkok, Kuala Lumpur
\nand Jakarta than shop at home.<\/p>\n
According to one unofficial estimate, Singaporeans spent S$2.6
\nbillion (US$1.86 billion) shopping in neighboring Malaysia alone
\nin 1995. Both are separated only by a causeway, and the nearby
\nMalaysian city of Johor Bahru has become a virtual shopping mall
\nfor Singaporeans.<\/p>\n
Balance of payments data showed that total spending of
\nSingaporeans traveling abroad had risen by an average of 20
\npercent a year since 1992, the newspaper added.<\/p>\n
Friedrich Wu, vice president and head of economic research at
\nDBS Bank Ltd., said that if the amount spent on shopping had
\nsimilarly surged, it would mean very bad news for local
\nretailers.\"<\/p>",
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