Sovereign Wealth: Small Economies Thinking Big?

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Sovereign wealth the buzz word for state-owned acquisitions of foreign assets has been in the news in the past couple of years with bailouts and capital injections of major corporations by small economies such as the United Emirates and Singapore. Though the idea is hardly new, the role of sovereign wealth has been rejuvenated and has instilled new importance in the way the wealth of small economies can gain a foothold in the global market place. But more importantly, it also has valuable lessons for the not-so-rich transitional economies by actively engaging their state in international enterprise.

The premise that active engagement by the state in business is crucial for small, developing economies for global competitiveness is based on the assumption that the state has resources to enhance such competitiveness by providing businesses the political underwriting, the surety of collateral, and collective global impetus. In a fast-changing global environment that seeks more access and free trade, businesses are wary of state interventionism but that is more the position of developed economies whose dominance in the global economy has been unassailable leaving poorer economies lagging behind in their competitiveness. State partnership with businesses, this study argues, will give developing economies some competitive balance. Advocating for such an engagement, this research proposes a concept of ‘state-guided entrepreneurship’, and offers Singapore as a model of one such economy that had transited successfully to a developed economy that was driven almost solely and unashamedly by an entrepreneurial government.

Stream: Economic Sustainability

Paper: A paper has not yet been submitted.

My teaching expertise in my present position with Massey University, in international business, trade and leadership, is supported by my extensive (over three decades) management positions in shipbuilding and the petrochemical industries. My work had brought me to several countries which did much to instil my interest in the humanities. While keeping abreast with business issues, I also maintain an active interest and research in the social sciences of Southeast Asia, in religion, history, and politics. This culminated in the publication of my book Malay Political Leadership (2002), by RoutledgeCurzon. I participate regularly in international and regional conferences and contribute journal articles. I also regularly lecture at other universities on religion, and Asian culture and politics. I was born and raised in Singapore but have lived in New Zealand and Australia since 1982. I have a BA, MA(Hons), and a PhD from Victoria University of Wellington, New Zealand.