Private sector led development through direct foreign investments

Abstract

Singapore is a superb of a developing country which has been successful in attracting desirable direct foreign investments and harnessing them for its economic development. The successful attraction of foreign investments has taken place despite the lack of natural resources and the absence of a large domestic market. Singapore's economic success has been attributed in large part to the substantial inflow of direct foreign investment, particularly in the late 1960s and 1970s ( China, 1986 ). The industrialization process in Singapore can be considered to be private sector led through direct foreign investment. The role of the government in this process is largely to ensure a conductive investment climate, and to provide essential social services and ensure the development of the good and efficient infrastructural support.