‘Can Scotland’s Lion replicate success of Asian tiger?’
Hard work now will reap rich rewards, says
POLITICIANS never miss an opportunity to hammer home the message that we are competing in a global economy and that we have to get our goods and services out to the wider marketplace. In short: export or die.
In the macro-economic sphere, there is every reason to be satisfied that the message is hitting home. The Scotch whisky industry has shrugged off the worldwide recession, food exports are healthy and our big engineers are carrying on a fine tradition of not only operating in a global environment but also beating the opposition off the park.
Now, say the export enthusiasts, it’s time for Scotland’s small- and medium-sized enterprises (SMEs) to step up to the plate.
It is time for them to essay forth into the world and pick the low hanging fruits from the tree of export success. Would that it were so easy.
The hard fact of life on the lower rungs of the corporate ladder is that SMEs, regardless of the quality of their offering, face a Sisyphean task to break into established markets in the economies in which the real money now resides.
In the emerging economies of the East, it is a long, hard slog of knocking on doors, attending trade shows and, increasingly in our case, bio-partnering – a kind of speed-dating for businesses where you have a limited time to make your pitch to a succession of parties.
And it is easy to be tripped by unexpected cultural and social mores.
It is rare to encounter anything but scrupulous courtesy when doing face-to-face business in many Asian countries. At the same time, however, exporters have to be acutely aware that, while they may be at the top of the agenda while they are in the room with a prospective customer, they are often just a vague memory by the time they have shut the door behind them on the way out after making their pitch.
Once established in eastern markets, however, relationships can be strong and lasting.
Both Scottish and British companies are welcome on the other side of the world and the fruits of international trade are sweet.
But you have to put in the work. When did anything good come easily? l Dr Joanna Oliver is the chief executive of AvantiCell Science
WHEN Singapore was forced to separate from Malaysia in 1965 to become an independent republic, it faced great economic and political challenges to survive alongside its wealthier and better developed neighbour.
At the time, Lee Kuan Yew, Singapore’s reluctant first prime minister, lamented: “For me, it is a moment of anguish. All my life, all my adult life, I have believed in merger and unity of the two territories.”
Many of his new compatriots felt similarly. Singapore, arguably, has the distinction of being the only country in recent history to gain independence against its will: an interesting parallel of sorts as we contemplate the possibility of Scottish independence.
In the almost 40 years since then, Singapore’s population has grown to 5.5 million – comparable to that of Scotland – and it has positioned itself as the major financial centre of south-east Asia with an energetic and highly-educated population. It is widely viewed as a considerable success story with GDP per capita of more than $60,000 (£37,000) – twice that of Scotland.
A hub for transportation and banking, Singapore has a highly-developed engineering and alternative energy sector. Its governance is often described as being a “benign autocracy”, but, in fact, it has a very efficient parliamentary democratic system based on that of Westminster, and a racially diverse population.
Some have commented on the parallels between Singapore and Scotland in terms of what a better-focused Scotland, independent or not, could become with investment in the creative industries, the repositioning of its tarnished financial services sector and the potential for developing new energy-related businesses and technologies. Both countries boast excellent educational institutions and, like Scotland, Singapore is keen to attract foreign talent, making a commitment to double the number of students by welcoming overseas universities.
Can Scotland’s Lion rise to the challenge and replicate the success of this Asian Tiger? There are some notable Scottish success stories with a significant presence in the city state, such as online flight search engine Skyscanner, which has expanded its footprint in Singapore. Bright Purple Resourcing, the Edinburghbased recruiting firm, has just opened its first global office there. Managing director Nick Price notes in a recent blog: “We are not alone – there are around 8,000 Scots living and working in Singapore and about 40 Scottish companies with most universities there or nearby.”
When the Asia Scotland Institute and Adam & Company hosted a discussion between the high commissioner of Singapore, T Jasudasen, and Scottish companies recently, these parallels were very much the topic of conversation.
I reminded our guests of the many historical connections between Scotland and Singapore. The first governor in 1823 was a Scot, John Crawfurd, and Raffles co-founder William Farquhar was a Scotsman.
Touring Singapore today, one can see a wealth of buildings and road names that are of Scottish origin.
Probably one of the most significant contributors to the infrastructure of Singapore was Scottish civil engineer John Turnbull Thomson, who in 1844 became superintendent of roads and public works. His outstanding achievement was the design and construction of Horsburgh Lighthouse on Pedra Banca Rock. More recently, Professor Sir David Lane worked as the executive director of Singapore’s Institute of Molecular and Cell Biology, receiving worldwide acclaim for discovering the p53 cancer gene in 1979. He is clearly following in the footsteps of some great Scots before him.
But is there a lesson to be learned from the parallels and connections, is there a parable? Many believe that Singapore, with its flat tax and favourable trading climate, possesses