Document Type

Conference Proceeding


Asia Academy of Management


Faculty of Business and Law


School of Management




This article was originally published as: Austin, I. P. (2012). Singapore, Diversification Theory and the Global Financial Crisis (GFC). Proceedings of Asia Academy of Management Conference. (pp. 300). Seoul, South Korea. Asia Academy of Management. Conference website found here


Since independence in 1965, Singapore has grown rich by opening its borders and encouraging Multi-National Enterprises (MNEs) to call the small city state home. However, the Asian financial crisis (1997-08), which saw Singapore experience its first significant economic downturn in decades, led to a change in direction with economic public policy being directed towards achieving strategic diversification of the national economy. This paper will examine how the 2007-09 Global finance crisis (GFC) exposed Singapore’s uber form of economic diversification - financial sector internationalisation, multinational enterprise (MNE) strategic engagement, biotechnology and medical research and so on - as being incapable of cushioning the national economy from external shock. The paper highlights how, despite recording record economic growth in 2010-11, the economic vulnerabilities exposed during the GFC will continue have far-reaching implications for the island state’s policymakers diversification macro-strategy over the coming decade/s.

Access Rights

not open access

Included in

Business Commons