entrepreneurship The education system has been criticized for being too focused on producing skilled labour for multinational corporations (MNCs) and government- linked companies (GLCs). One consequence of this has arguably been the erosion of entrepreneurial instincts in post- Independence Singapore, in contrast to the entrepreneurial spirit which flourished in Singapore during the colonial period.

In 1985 the Economic Committee on Singapore’s Future Growth identified local small- and medium- sized enterprises (SMEs) as being key to Singapore’s development. The first SME Master Plan was launched in 1989. However, despite a plethora of SME assistance schemes, local firms continued to lag behind non- SMEs in productivity. Another master plan, SME 21, was crafted in 2000 to take Singapore SMEs into the future. This new ten- year plan was intended to transform the SME sector into a source of innovation and entrepreneurship and thus enhance Singapore’s economic competitiveness.

The Action Community for Entrepreneurship (ACE)— a collaborative effort between the private and government sectors— was set up in May 2003. Such moves were seen as necessary not only to cultivate a more vibrant SME sector, but also to speed Singapore’s transformation into a knowledge- based economy. A new Cabinet portfolio was created— minister in charge of entrepreneurship— whose job was to cultivate a more conducive environment for entrepreneurial activities by creating, for instance, a more level playing field for new start- ups and SMEs vis- à- vis MNCs and GLCs. Singapore has a Competition Act (2004) that aims to enhance market efficiency and strengthen the competitiveness of the economy. The state has also adopted a ‘Yellow Pages’ rule for starting new businesses, so that it does not get involved in industries in which there is already a private sector presence.