Publication Type
Journal Article
Version
submittedVersion
Publication Date
2005
Abstract
Infrastructure can be unreliable and administration subject to corruption in Asia's rapidly developing economies. Foreign investment is thus drawn to privileged investment enclaves, as well as in and around centers of international infrastructure. This context provides opportunity for Singapore-styled industrial parks, through the provision of superior infrastructure, the ability to negotiate investment concessions at inter-government level and, where existing, through the links to influential Chinese business groups in the investment location. Batamindo Industrial Park and Bintan Industrial Estate in Indonesia were the prototypes. This paper revisits the Parks, and offers a stock-take on the challenges confronting these flagship projects. Evidence from on-site surveys and interviews are presented. This paper concludes that the raison d'être for the projects has overestimated the attractiveness of the low-cost investment enclaves for multinational companies, and the projects' potential has been largely overshadowed by socio-political uncertainties in the host environment.
Discipline
International Business
Research Areas
Finance
Publication
Journal of Asia-Pacific Business
Volume
5
Issue
4
First Page
43
Last Page
65
ISSN
1059-9231
Identifier
10.1300/J098v05n04_04
Citation
YEOH, Caroline; Lim, Darren; and Kwan, Adeline.
Regional Co-Operation and Low-Cost Investment Enclaves: An Empirical Study of Singapore's Industrial Parks in Riau, Indonesia. (2005). Journal of Asia-Pacific Business. 5, (4), 43-65.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/2364
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1300/J098v05n04_04