The Singapore developmental state in the new economy and polity

Good corporate governance has proved lacking in other Asian countries since the crisis in 1997. Economic reform, corporate and financial restructuring have been urged, cajoled and demanded by major international lenders and p robably, too, to avert the next financial crisis. Singapore stands out with out the profligacy of government spending, dubious government-business rela tions, cronyism, corruption and nepotism. Its formula of a committed develo pmental state and Singapore Inc. has delivered jobs, income, homes, educati on, security and welfare since 1959. This paper puts to question the resili ence of this developmental state model in the globalized environment with i nformation, communication technology (ICT), knowledge-based economy (KBE) a nd hyper-competition. Efficiency, effectiveness and deliverables may remain assured under Singapore Inc. which is being restructured even before 1997. The critical question is on the other side of the political economy. The s ame new economy trends impact on socio-political values, culture and behavi our as well. Can Singapore Inc. reinvent itself economically without concom itant political reforms and still meet the challenges of growing affluence, new political culture, democratization and impact of ICT on the society an d polity? How much to deregulate politically to match economic deregulation and liberalization? How much more corporate governance and transparency in Singapore Inc.? Foreign economic policy has to be more sensitive when gove rnment-linked companies (GLCs) cross borders and interact in the political economy and social milieu in the region. The paper advances a number of sce narios for the Singapore developmental state and a 'flow-through five-star Hotel Singapore' with a loyal clientele seems a likely one.