Q 1 :How did Singapore handle the

1985 recession?
• 1979, wage policy overambitious, growth of labor productivity had not kept pace
with rising wages that lead into nation cost
• In 1985 – a deep recession was accompanies by weak external demand, low profits
, much reduced investment manufacturing and increasing of unemployment rate.
• High-Level Economic Committee April 1985 – handle this recession
• They recommended to the government lessen its extensive managerial and development
role to allow the private sector more freedom .
• It used to advocated flexibility in wage setting and reduction of the high mandatory of CPF contribution in
order to stimulate domestic demand.
• In 1989 , Lee Government reduced the stringent of resident status criteria for up
to 25,000 skilled workers from Hong-Kong to increase the number of skilled
worker.
• Established of a “growth triangle” comprise of Singapore , Malaysian and Riau
Island of Indonesia.
• The benefit of corrective measure :
• 1987 – GDP growth rate of 9.8% exceeded the predicted figure of 6%
• 1988 – High Export Growth And Domestic Demand Led To 11.5%
• 1990+ – Manufacturing sector (Electronic component) grew by 9.5%.
- Financial services had grown dramatically & influenced for 28% of
GDP and employed 11% of the labor force.
- Become world largest oil-trading center.
- Changi Airport become the world best airport and same goes
to Singapore airlines
Q 2: Why does Naranya engage in Csoftmty?
Should they? Are they doing the right way? What
does C Csoftmty do? Is’t successful in its activities?

• Galvan Artura wanted to help the IT cluster or

“Csoftmty”
• Yes, Csoftmty´s vision was aligned from what they
wanted initially.

• They were doing the right thing to be engaged with

Csoftmty.
• But..
• Csoftmty is an autonomous organization that worked
to create opportunities and support for companies the
IT cluster to the business that could grow, generate jobs
and become productive in the global economy.
• Yes, in 2005 Nuevo Leon
• had an increasing numbers of engineers from
2,000 ---- > 14,000 by 10 years ( 2003- 2013)
• IT Sector also has gain gained more than 3,000 jobs.
• They have represented more than 230 industry organization
which is before this there were about 100 companies for
last 10 years.