Electronics foreign direct investment in Singapore: a study of local linkages in “Winchester City”

The paper examines the role played by foreign direct investment in developing local linkages in Singapore’s electronics industry. Backward material linkages have developed as a result of two processes: the development of indigenous local suppliers, mostly within the fabricated parts sector, and foreign investment by overseas suppliers, especially in the hard disk drive sector. The economic development potential of these suppliers varies, and local suppliers in contract manufacturing offer the best hope for future indigenous growth within the supply base. Public policies targeted towards supplier development and upgrading the quality of multinationals play a significant role in facilitating local linkage development in Singapore.