BROAD RESULTS OF THE MNC SURVEY

Methodology

In order to study the investment patterns of the MNCs and the impact they have had on the ASEAN-3, the authors felt that one way was to focus on MNCs with operations in at least two of the three countries and compare their operations in each location. These were identified from a questionnaire survey of 570 MNCs operating in Singapore. The companies were all in the manufacturing sector and from a cross-section of industries — food, chemicals, electronics, fabricated metal products, precision engineering, and so forth. The MNCs, the majority of whom were from the United States, Japan and Europe, were asked if they had manufacturing operations in Malaysia and Thailand, and if so, to provide details on: the date they established operations in the ASEAN-3; the products they made; the number of staff they employed in each location; and the linkages between their operations. From the responses, thirty MNCs were selected for a more detailed study, based on a further questionnaire survey and interviews with key personnel in the three countries.

Initial Questionnaire Survey Findings

From the initial survey of 570 MNCs, a total of 510 (89-5 per cent) responded to the questionnaire. Of these, 128 companies (25 per cent) indicated that in addition to their Singapore operation they also had operations in Malaysia and/or Thailand. An analysis of the sequence of their investments yielded the following result:

1. • 91 of the 128 (or 71 per cent) started production in Singapore before establishing operations in Malaysia and/or Thailand;

2. • 30 companies (23 per cent) started operations in the other two countries before coming to Singapore;

3. • the remaining 7 companies (6 per cent) started operations in the ASEAN-3 at about the same time.

The ninety-one MNCs which started operations in Singapore before moving to Malaysia and/or Thailand formed a large enough group from which a sample could be drawn for further detailed study. They also formed a broad spread in terms of origin — mainly Japanese, American and European companies and 100 per cent foreign-owned in almost all cases.