Singapore Inc. Goes Shopping Abroad: Profits and Pitfalls

Efficient state-led, market-driven intervention has been the hallmark of Singapore's success story but the exportability of state credibility, systemic efficiencies and local advantages into alien contexts is a matter of academic and political controversy. This article scrutinises Singapore's experience with outward investment in order to objectively examine the role of Temasek and of the government-linked corporations (GLCs). It uses the case of Temasek's investment in Thailand to reflect upon the economic and political impacts of the GLCs' global quest. It shows that resistance to Singaporean acquisitions reflects a combination of factors, including a general turn towards “economic nationalism,” attempts by other governments to replicate the city-state's state-led modernisation, and Temasek's and GLCs' underestimation of the risks that are germane to their international strategy.