Group project research report
COUNTRY RISK ASSESSMENT CASE STUDY
SINGAPORE AUTOMOTIVE INDUSTRY
The core purpose of undertaking country risk assessment is to identify the specific country imbalances that may increase risk of achieving expected return on investment in the contest of international business. It is apparent that any direct investments and business transactions has some degree of risk in relation to the expected returns. It is also important to note that a consideration of a direct investment to another country involves additional risks that exclusive of the domestic risks (Hirjani 2015). The underlying additional risks also referred to as country risks are attributed to differences in economic structural frameworks, socio-political frameworks, trade policies, currencies and geographical locations of various countries.
The concept of risk pertinent to direct investment in a country has been defined by many scholars as potential uncertainties that are likely to reduce or adversely affect the returns of a cross-border direct investment. Country risk analysis in international business is founded on the account that growing imbalances in political factors, economic and social introduces the risk of a decrease in the direct investment returns (Hirjani 2015). These imbalances constitute specific risks factors and various categories of risk. Identification of these risk factors and their influence level in a specific country creates country investment risk assessment.
Overview of Singapore Automotive Industry
It is evident that Singapore automotive manufacturing industry is not large compared to other developed countries such as Japan and Germany. However, Singapore in the recent years has become a suitable choice for many automotive companies. The companies have chosen Singapore as their headquarters, assembling and distribution of spare parts, production centres as well as research and development (Euler Hermes 2016). Data and statistics indicate that until 2012, automotive industry in Singapore had been declining but it has significantly recovered since 2013. After sales reached the peak of 149,100 vehicles in 2006, the number of purchased cars decreased continuously to only 47,855 commercial vehicles (CV) in 2011. This development was stabilized in 2012 with a constant number of 47,555 cars depicting a slow decrease of 0.6 %. Smaller vehicles presented a different trend by increasing 9.8 %in sales. Sales of big cars and limousines, however, decreased by approximately 9.1 % (Euler Hermes 2016).
As a notable distribution centre, there are almost all the major OEMs (Original Equipment Manufacturers) as well as automotive supplies majorly Tier 1 have chosen Singapore as the central point to oversee their South East Asia operations. OEMs and many other global automotive companies use Singapore as a regional logistics headquarters for regional aftermarket spare-parts distribution. Therefore, Singapore serves as an important regional procurement centre and provides a convenient centre to oversee supply chain functions (Hirjani 2015). Singapore’s excellent physical and trade connectivity, availability of supply chain professionals and well-established financial infrastructure has made the country an attractive location for direct investments mainly the automotive industry (Ahmad, Draz and Yang 2015).
Regarding the key major players in this industry, new car sales in Singapore have recovered slightly in 2014: Sales went up15% year-on-year in March to 1997 registrations, bringing the total figure in the first quarter to 5,962 units, up by 11% from 2013.Toyota lead in the brands ranking due to 364 car sales and a market share of 18.2% (incl. Lexus sales) in the year 2013. BMW has remained 2nd with a market share of 17.8% while Mercedes falls into 3rd place with a market share of 14.4%. Other notable brands ranked after the three brands above include Nissan, Mazda, Hyundai, Kia and Subaru respectively. The country risk assessment regarding the consideration for direct investment in Singapore automotive industry can be provided as follows.
It is evident that Singapore for many years has enjoyed a significantly stable political system thus attracting direct investments from various investors targeting its sectors of the economy. This country is a leading state in South East Asia as well as globally in signing both regional and international agreements thus becoming a country of influence in Asia (Hirjani 2015). In the context of regional competitiveness pertinent to investment and exports, the government has promoted economic diversification in the various sectors of the economy including automotive industry (Euler Hermes 2016). The current ruling political party landslide victory in 2015’s elections, complimented with smooth conducting of by-election victory in May 2016, affirms the fact that the party is the most popular and stable as well. It is also widely expected that the party will continue adopting consultative mode of governance policies established in 2011 that encourages direct foreign investments (Ahmad, Draz and Yang 2015). The policies entail emphasis on restructuring the labour force away from its dependence on foreigners, as well as strategic direct investments into productivity enhancing measures. It is notable that the political risk in Singapore is significantly low and the Political and Economic Consultancy (PERC) provides that the country enjoys lowest political risk across Asia. The country is governed democratically and it has constantly improved and transformed business opportunities.
Singapore is a notable vibrant-free market economy and it is developing at a fast pace. Data shows that Singapore has the highest per-capita income in ASEAN. It is also apparent that this country is likely to experience the modest real GDP growth through 2017, and forecasts shows that the real GDP growth will stand at 2.2% from the current 1.7% in 2016. It is also important to note that the structural domestic trends and poor external demand may hinder GDP growth although this is insignificant (Euler Hermes 2016). It is important to note that Singapore has its economic aspects being positive attributed to its low corruption levels, lower unemployment rate, strategic location as well as stability in prices. Although this country is economically stable, other important risk aspects to take into consideration include unavailability of raw material and resources (Ozturk, Joiner, and Cavusgil 2015). Additionally, Singapore has a relatively high cost operating environment.
Economic Volatility Risks
Singapore is a notable country on Asia with a strong external position with an evident long history of current account surpluses. The country has also apt foreign exchange reserves as well as low public external debt. An evident risk in the context of making a direct investment in Singapore is the economic growth volatility which is associated with lower global trade and volatile financing position (Hirjani 2015). Additionally, it is worthwhile to examine the external liquidity risk that is associated with this country economic volatility. In regard to external liquidity risk, Singapore’s external position is formidable with the Current account balance being at the highest level having 22% of GDP in 2015 and trade surplus of 28% GDP in 2015 in the same year. Also foreign reserves cover 10 months of merchandise imports. Large external debt in this country is attributed to its state of being a financial hub. The larger external debt is not a significant direct investment risk in the short run (Ahmad, Draz and Yang 2015). The negative spill overs from volatile financial flows in Singapore have been contained because the country has a strong banking system and regulatory frameworks.
Singapore Automotive Industry Risks
There are notable industry risks that are pertinent to this country automotive industry. It is important to note that Singapore is one of the most expensive places in the world to own a motor vehicle. This is attributed to this country strict imposition of regulatory measures such as the Certificate of Entitlement (COE), highest custom duties, Electronic Road Pricing (ERP) which is the road usage charge (Ozturk, Joiner, and Cavusgil 2015). Therefore, it can be argued that the risks in this industry are the strict regulation of the underlying market. These strict regulations are because of the geographical constraints and the governments need to regulate and manage traffic. Despite these measures, with a per capita GDP of approximately US$30,900, demand for automobiles is very high (Euler Hermes 2016). Generally, the industry risks in the context of Singapore automotive industry is majorly the risks of failing to meet the supervisory and regulatory compliances as provided by the government.
Singapore is essentially among the leading automotive markets internationally. The industry competitiveness is relatively high and it is largely dominated by multinational Asian vehicle makers and other authorized distributors. The dominating Asian vehicle makers include Nissan (Tan Chong Motors), Toyota (Borneo Motors), Citreon, and Kia), Hyundai (Komoco Motors, Honda (Kah Motors), and Mitsubishi (Cycle & Carriage which also distributes Mercedes-Benz). Due to the high competitiveness, the major competitiveness risk might be the dependency on local exclusive distributors to leverage the existing networks and the automotive market knowhow (Hirjani 2015).
In conclusion, Singapore’s country risk rating is generally good but to a less significant extent is affected by the volatile economic and political environment which in turn affects the corporate behavior. Singapore’s business environment is generally good and it can be argued to being at very low risk. The corporate financial information is accessible, reliable and available. Debt collection is effective and efficient thus the institutional quality is good and intercompany transactions are generally smooth. Singapore government has made tremendous efforts in trying to contain the underlying risks by lowering the energy prices, adopting a less restrictive monetary policy and corporate tax rebates for direct investments. Additionally, the country’s strong macroeconomic fundamentals are likely to contain financial shocks thus reducing the risks.
Euler Hermes. (2016, June 6). Economic Research Country Reports. Retrieved September 27, 2016, from Euler Hermes: http://www.eulerhermes.com/economic-research/country-reports/Pages/Singapore.aspx
Hirjani, A. (2015, May 12). ASIA ECONOMY: IMF: This is the most important risk for Singapore. Retrieved September 27, 2016, from CNBC: http://www.cnbc.com/2015/05/12/imf-flags-risks-to-singapores-economic-outlook.html
Ozturk, A., Joiner, E. and Cavusgil, S.T., 2015. Delineating Foreign Market Potential: A Tool for International Market Selection. Thunderbird International Business Review, 57(2), pp.119-141.
Ahmad, F., Draz, M.U. and Yang, S.C., 2015. Determinants of Outward Foreign Direct Investment: Evidence from ASEAN and Selected Asian Countries. Available at SSRN 2629031.
THE FOOD AND BEVERAGE INDUSTRY IN SINGAPORE
Food and beverage industry are one that it is unique on its own. It cuts across the globe, and its competition seems felt throughout the world. The industry requires continuous innovation for those who are players for survival. Clean, green, diverse and unique are the characteristics associated with the industry. The categories of substances included in this industry range from food like meat and to beverages like wine. The industry remains one of the competitive that whose entry requires close analysis. The industry has a diverse model of business including retail, food ingredients and service to those who need them. The consumer trends should be carefully be studied and the exercise of being flexible to that the products and the services offered should match those of the consumers in the market.
Food and beverage are one of those sectors that contribute immensely to the growth of economies in the world. In this industry, we have multinational companies that have established themselves hence driving huge profits from this business. The establishment of multinational corporations has not left out small players in the retail and also startups with the aim of expanding their business to the next level. The industry seems to be profitable hence attracting many players regardless of the higher capital required for its establishment.
The industry is usually dynamic with players frequently adjusting to the changing needs of the consumers depending on the purpose of the demand. The culture and diversity of those who demand this services make it necessary for the players to have a know-how of what they are expected to deliver. The diversity necessitates that those who are players have a wide knowledge of different food cultures in the world. When we look into Singapore as a country is created in between China and India. Meaning that the visitors who come to this country have different cultures in the food and beverages they take. The expert players Singapore food and beverage sector, have taken the time to study the culture of the two neighboring countries so that they can provide products and services that are to the expectations of their visitors.
Overview of Singapore Food and Beverage Industry.
Located between India and China, the major population of Singapore is made up Chinese up to 70% and the Indians up to 30%. The country is well known for its best financial services, recognized in the world. On the other hand, the tourism sector has not been left behind since it is one of those sectors that have great importance in the economy thanks to the well-developed infrastructure and the well-controlled industry. These two key industries make Singapore be one of those countries visited by several visitors from the globe. With the increased of those who are getting into the upper and middle-income levels, means that more individuals will require quality services of the food and beverage industry. Also, the immigration department in Singapore has relaxed its rules so that incentives provided to those that have talent be allowed to come into the nation. The migration of this talented individuals is additional customers to the players of this industry. In addition to this, there has been constant growth in the number of tourists who are coming to Singapore yearly. The growth has been as a result of better beautiful sceneries found in this country and the well-developed infrastructure network that enables the tourists to enjoy over the course of touring this area. The growth in the number of tourists necessitates that the food and beverage industry be at the top of providing the services required by those who came to the country. The positive growth rate in the tourism sector and the economy, make food and beverage sector to be one of the profitable sectors that investors can venture.
The industry is doing well also due to the boost by the healthy and safety measures that are taken to ensure that what the consumer receive is up to the required standards. Consumer protection measures also in this country have also contributed thunderously towards the growth of this industry. The well-controlled industry regarding those who are entering and products imported makes it possible to maintain high standards in this industry. The growth of the food and beverage industry depends on a lot of the well-equipped training facilities in Singapore which have contributed to the production of personnel who are well equipped with the industry’s knowledge. All these shows how the government of Singapore has contributed towards the growth of this industry. The future of the industry in this country remains positive and venturing into it will lead to profits hence no loss (Ashton, 2010).
The Food Industry
The food industry in Singapore purely 90% depends on imports since the country does not produce food. Due to continuous consumer growth, the food industry is going to grow in the future. The continuous population rise will make the importation into the country to rise steadily. Carbohydrates foods are highly traded, and the other types food also are retailed in areas where they are in high demand. Raw food is imported manufactured then sold to the consumers within the country. Also, the country has embarked in value addition that is meant to enable to export the food that it has manufactured and earn profits in return. The industry makes a lot of profits through innovations. The investment in the modern technologies meant to improve productivity and quality of the imported food makes Singapore be at a position of being a hub for food processing and even exporting. The knowledge imparted into the experts who go through the education system make them be at the top in the production of the food.
Competition in Singapore is mostly from multinational companies. They try to come in with their products marketing them as superior brands. The companies usually try to use the value addition route as a way of ensuring that customers are getting what they want.
The imported foods are ones used in the production of the beverages in Singapore. Modern technology has been put in place to ensure that production costs and the quality of the produced foods will lead to fetching higher prices in the market. Though it does not produce food on its own, Singapore has been able to produce alcohol and other beverages for resale. They export the alcohol to other countries. The export is made possible due to the high technology that can produce alcohol that is quality meeting the international standards. The beverage industry usually is well controlled with strict licensing to those who participate in the industry. The participation of the government in strict controls provides the industry with sanity that enables it the products to compete well in the international market and quality brands (Cuisine, 2010).
Challenges Facing the Food and Beverage Industry
The food and beverage industry in Singapore is somehow stable with the control measures in place. The industry supermarkets and the manufacturers that participate in the retail of Food and beverages are well controlled hence the challenges of distribution and pricing is not experienced as such. However, the major challenge comes when the food industry gets the food to manufacture at higher prices. The higher prices make the products from Singapore to be less competitive due to their higher prices. The coming up of globalization has made the industry be to more competitive with the sharing of knowledge from different parts of the globe. Globalization has led to the industry impacted by the turbulent economic conditions in the world like Oil Crisis. The confidence also in the food and beverage industry in Singapore is low because they are said not to be producing their food resulting in poor performance at some situations when competition is intense (Chickwe, 2009).
The key players in this industry include the supermarket that plays an important role in ensuring the products reach the consumers on the right and place. Also, other major players include; The Dairy Farm Group, FairPrice Group, and Sheng Siong. All these players have a contribution to the growth of the industry. We also have restaurants and hotels in Singapore that have taken part in the direction that is taken by the industry. The Hospitality sector is one of the areas that has contributed to the provision of the market for the products and services from the food and beverage industry. In fact, where we do not have hospitality sector, the performance of the food and beverage industry will not perform well. The government is another player in this industry as it will always determine who will get into the industry and also, it can influence the prices of the industry (BBC, 2010).
In Singapore, the food and beverage sector is one of the important industry since it deals with the products that the country does not produce. The industry is highly regulated to ensure that the food that finds its way to the country is fit for the consumers. The government has set up bodies that the are in charge of the sector to ensure order. The tourism and economic growth of Singapore have greatly influenced the direction the food and beverage industry is taking.
Ashton, A. S., Scott, N., Solnet, D., & Breakey, N. (2010). Hotel restaurant dining: The relationship between perceived value and intention to purchase. Tourism and Hospitality Research, 10(3), 206 — 218.
BBC. (2010b, 4th March). Timeline: Singapore. Retrieved 7th 10 2016, from http://news.bbc.co.uk/2/hi/asia-pacific/country_profiles/1148137.stm
Chikwe, A. C. (2009). The impact of employee turnover: the case of leisure, tourism and hospitality industry. The Consortium Journal, 14(1), 43-62.
Cuisine. (2010b). Winners in Cuisine NZ Restaurant of the Year Awards 2010.
COUNTRY RISK ASSESSMENT CASE STUDY OF SINGAPORE ELECTRONICS INDUSTRY
Fundamentally, a risk is the possibility of financial loss (Carroll, 2008). The term is used as a reference to the uncertainty of the variability that affects businesses where they operate. Investors, individuals or as organizations thus take it upon themselves to conduct the risk assessment before they decided to put in money to a project. Risk assessment is the process of identification of potential hazards that can cause financial losses, and putting effective strategies forth to handle them should the business find itself exposed to such risks (Carroll, 2008).
The existence of risks or uncertainties in business means things cannot be done routinely, or as they are usually done without a deeper look at things. And that is the basis of doing a risk assessment. In the context below, we analyze the electronics industry in Singapore and critically look for uncertainties and risks that anyone seeking to invest there might be exposed to.
Singapore Electronics Industry Background.
Any electronic, or electronic component you come across have a significant probability that it was designed and manufactured in Singapore (Singapore Economic Development Board — Investing Business in Singapore, 2016). Some of the electronics designed and built in Singapore include mobile phones, cameras, memory cards, home electronic machines, car navigation systems among many others. The electronics industry emerged in the last half a century in Singapore and today is one of the major manufacturing industries in the country, contributing over 5.3 percent of the total gross domestic product (GDP) in 2013 (Singapore Economic Development Board — Investing Business in Singapore, 2016).
The role and essence of electronics change rapidly, and the use and demand continue to increase at an extremely high rate. The use of electronics 10 years ago is not the same as today, as is the case about demand. What this means is that the level of innovativeness and creativity needed in the industry is immense to keep up with the rate of change and need. Singapore’s electronic products are increasingly becoming connected and smart, with an ability to sense, store and share information.
With the focus on the development of ‘smart’ electronics to meet the needs and challenges of the current world, Singapore is aiming to be a giant in design and manufacturer of electronics and their components used the world over. With their creativity, they expect to replicate their sales figures in Asia to the rest of the world.
Even though the electronics industry in Singapore is thriving, any new investment cannot be vindicated of all the potential risks it may stand as it gets along. All business, even those that are set up in and from conditions deemed perfect do stand various forms of uncertainties (Carroll, 2008). Below, we examine key risks that investing in Singapore’s Electronics Industry may attract.
Investing in Singapore’s electronic industry comes with a myriad of uncertainties. In most cases foreigner investors come from countries with different intellectual property rights, labor laws among many other laws (Gov.uk, 2016). Singapore is one of the most independent countries in the South East, enforcing many of its laws as a country. When arriving in Singapore, foreigners and their entities are required to register their intellectual properties in the country as registration elsewhere cannot be enforced in Singapore (Gov.uk, 2016). That exposes exported innovations to risks of being copied with other designers and manufacturers. Legal redresses could not be offered in the country unless their provisions were strictly followed.
That is not the only issues the legal risk seeks to remedy; employment laws are quite complex globally. Investors have to continuously stand the danger of being sued for severally reasons including claims by employees who they have fired, injured employees or even due to low wages. These are factors one has to look into while investing in the industry seriously. Even though some risks like stealing of intellectual property can be prevented by registrations, it is not easy to curb redresses that may be sought by employees for various reasons against the company. Considering the electronics industry absorbs a large workforce, it is prudent they always be ready to address such risks once they arise.
Singapore maintains a small but an open economy, which many consider as a barometer for global trade (Gov.uk, 2016). Its state of being liberalized and trade-oriented makes it open for external shocks. In the past, the sluggish economies of neighboring countries slowed down their GDP growth. However, the economy recovered and is doing well with a projected accelerated GDP growth rate. The economy can be described as stable, with no significant fluctuations.
Economic activities are spread across several sectors, with the manufacturing sector taking a significant part. Manufacturing, which has over 20 percent of the economy is dominated by the electronics industry. That makes it vulnerable to all the risks that can emerge out of the economy that include changes in labor markets, inflation, foreign exchanges among others.
Investment in the electronics industry will benefit from the economy’s openness and stability. Economic fluctuations affect labor markets, purchasing powers and the country’s foreign exchange, which can have serious ramifications on the entire industry (Renesas Electronics Singapore, 2016). Inflation can have workers demand higher salaries, make raw materials expensive and so forth. Even though the economy has been stable, Singapore being a small country and a growing economy, investors moving in must be privy of the potential economic risks and put forth plans to address them should they be exposed.
The risk of any business in Singapore being affected by politics is extremely low. Singapore is a democratic country. Analysts and consultants quip that the country is one of the safest to invest in when you don’t want any political meddling (PESTLEanalysis, 2015). As a result, the county’s politics are very stable. The entire political process that elects leaders into office is also very stable. The stability makes Singapore one of the leading destinations for foreign direct investment.
Other political advantages will have any business prefer Singapore. People’s freedoms that include freedom to assemble, picket, public processions are highly prohibited (PESTLEanalysis, 2015). Ethically, businesses should not anticipate benefiting from that as they are not supposed to make employees aggrieved to the extent of picketing, or demonstrating. This kind of political structure will shield the business from any harm that results from interruptions caused by employees.
Bribery and corruption are also highly prohibited. Any attempt to bribe, or engage in corruption can lead to an arrest and a possible prosecution. These are things one need to know about Singapore’s political influence on business, and as we have noted above anything can happen.
Corruption, political instability are some of the issues that affect businesses most. The environment can be stable, but it is subject to change anytime. Thus should prepare appropriate plans to address any emerging risk.
In the last two decades, environmental activities have raised concerns about the impact of the industry’s activities and products on the environment (PESTLEanalysis, 2015). Most electronics are non-bio gradable, making their disposal rather an issue. It doesn’t end there, most of the byproducts also affect the environment negatively when disposed of irregularly. A situation that is raising significant concerns. Other than the provisions of the law, companies, as part of their corporate social responsibilities owe the societies where they operate an initiative to ensure environmental sustainability and wellbeing.
Maintaining this may be a big challenge in the electronics industry. Major countries across the globe have legislated special laws on disposing of electronic components. Some of these legislations are extremely expensive to implement (PESTLEanalysis, 2015). With the already enormous resources required to invest in the electronic industry, stringent legislations on disposal risks the business spending more than they should, in other markets with no such legislations.
Singapore is an island, and often vulnerable to natural disasters like earthquakes, typhoons, as well as floods and many other natural disasters (Renesas Electronics Singapore, 2016). Even though the country has done extremely well to curb damages or at least keep them at minimal whenever they happen, the potential losses they can bring to big industrial plants like the ones producing electronics cannot be overlooked.
Such a natural disaster to the business equipment may damage them, rendering them useless and even stopping the operations for several days, or more (Renesas Electronics Singapore, 2016). The industry needs to cushion itself from such risks as they can significantly affect the performance of the industry. Establishing several countermeasures such having contingency plans in place as well as subscribing to various insurance policies can go a long way in preventing the sector from incurring losses it cannot recover.
The highly dynamic innovative electronics industry forms the backbone of Singapore’s economy. Over the last few years, the industry has attracted significant resources from several investors, including the government keen on growing the industry.
Despite that, the industry stands amidst several uncertainties which it must plan in advance to address if it has to continue growing and attracting more investors to it. We have highlighted some of the risks touching on the economy, politics, environmental and even physical ones. Those are part of the key areas it has to be aware of the risks that can come out of them, but they are not alone. Several other sectors pose serious risks to the industry, which can be looked at later on.
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COUNTRY RISK ASSESSMENT CASE STUDY OF SINGAPORE HEALTHCARE INDUSTRY
Risk assessment of a country’s healthcare industry is a timely undertaking in the recent times that is aimed at revealing the current trends that are associated with the ever rising costs of health care services and products. It should be understood that the world is currently facing a lot of challenges and shortage of resources to respond to a number of chronic diseases which are on the increase at this era.
Most important to investigate in the healthcare industry is the nursing profession that is currently faced with a lot of challenges due to the shortage of Registered Nurses mostly in public health facilities. This has negatively affected the quality of patient outcome due to the comprised delivery of medical services. It is known that hospitals which operate using insufficient number of nursing staffs have a high record of poor patients’ outcomes. It has also been determined that increasing the staffing levels in most public facilities is not an easy task despite the fact that the patient outcome is known to be poor. The low staffing levels in hospitals is due to the high number of patients who are current always seeking for comprehensive medical care and the wide gap that exists between the open positions in health care sector and the number of registered nurses who are available to take up these positions. An average vacancy rate of about 13% has been identified.
An Overview of Singapore Healthcare Industry
For Singapore, it is described that attempts to reconstruct the nursing workforce which is currently impending is a major threat towards that overall emergency preparedness in this nation. It is identified that in Singapore, emergency responses rely on services that are delivered by nurses who are always not sufficient. It is indicated that the Singapore has to come up with ways through which the nursing staffing levels will be improved to make sure that the state is always capable of handling emergencies cases which can come up at any one time (Haseltine, 2016). It is for this purpose that a robust nursing team is required in hospitals to facilitate effective response to health emergency cases at any one time.
A current trend has being indicated where hospitals are replacing Registered Nurses with licensed practical nurses in a way to reduce the amount of money that is used to support the nursing profession. This is a changing mix that has not only affected the working standards of nurses but has resulted into lowered quality of health services that are available at any one time to the members of the community. In Singapore, the hourly rate of practical nurses is about 21$ to $28 while that of Registered nurses is determined to be $32 to $43 (Haseltine, 2016). They are interested in profit maximization without considering the effects that are felt by members of the community when they are served by low qualified personnel whereas the government can afford to employ qualified nurses to deliver quality services. The growth rate of Licensed Practical Nurse in Singapore stands at 5 % for the last five years while that of Registered Nurses is indicated to be 6%. This is a major problem that affects acute hospitals where specialized services are greatly required based on the fact that intensive treatment procedures are involved.
Professionalism and Level of Training
The complexity of procedures in health facilities requires that qualified nurses be used and this is determined by the level of training of the nurses and the experience they have. There thus exists a major gap when it comes to the quality of services that are offered by the licensed practical nurses in public health centers and what is being offered by private nurses who are by now operating on a private basis after they lost their jobs to the practical nurses. There are those who intentionally withdrew their services in the public sector and are currently operating on their own due to the poor payment systems and terms that were offered by the government (International, 2015). This has since created a scenario where the members of the community have to spend more when seeking quality medical services meant to accurately offer treatment to certain medical conditions which require interventions by qualified personnel.
Nursing Changing Mix
There is a possibility that those involved in the changing mix in the nursing profession are not aware of the extreme challenges which are being experienced. The missed understanding can only be addressed through detailed and dedicated research studies that they will be informed of the adverse effects allowing them to make timely changes to avoid things getting worse. The government, which is the primary source of funds in public facilities, will always undermine efforts by other parties that try to exposes its weakness, and this is a major challenge that research programs aimed at exposing trends in nursing profession about what the government is facing. Long-lasting solutions in the nursing profession can only be found if only the government and stakeholders involved change their focus to not only aim at profit maximization but have a major goal of improving the health care sector as whole, ranging from the professionals available and the systems that are involved (Mukhopadhaya, Shantakumar & Rao,2015).
Nursing Staffing Ratios
It is also indicated that regulations behind the staffing ratios is an issue that needs to be addressed with a lot of considerations of the ever increasing number of patients that are always available at any one time seeking medical services in Singapore. It should be understood that the population is continuously becoming aged and this presents a high demand for nursing services than before. This is a call to the public health sector to make timely adjustments that will allow for recruitment of more registered nurses to increase the available ratios. The elderly population creates a delicate population that requires timely medical attention and swift interventions to be available at all times (International, 2015). Any delay in service delivery worsens their medical conditions, and this can only be achieved by increasing the number of nurses that are available in public health facilities.
Mixed research studies have identified that public facilities are flooded with medical students who are used in most cases used to deal with the high number of patients. Fresh graduates end up taking roles in comprehensive care departments, and this is a threat to the quality of health care offered. This is because the government ends up posting few registered and experienced nurses to public facilities who end up taking up the management roles. It is for this reason that they are not directly involved in the patient analysis to decide on the suitable treatment options. They function to be consultants in the facilities making it hard for every patient to get the required therapeutic touch from them. Interns operate based on the operating procedures that are set by the management, and this makes it hard for identification of other factors behind a given medical issue. It is for this reason that health promotion is not efficient and re-occurrence of diseases remain to be high.
It is also indicated that there lacks the required nursing workforce to attend to complex medical conditions which require an experienced nurse to coordinate the process involved to incorporate all parties involved to favor the treatment and management of these conditions such dementia. The main problem is that the number of specialized nurses in acute hospitals is always limited as most of them have since turned to work on a private basis. It is identified that treatment of such complex medical conditions is always expensive especially when private nurses are used. These are conditions that require a lot of input, and this is where professionals are required to make informed decisions that will decide the best treatment options that will offer solutions that will fully respond to these conditions that are not easy to treat and managed. The nurses that are always available at any one time are always limited and cannot sufficiently attend to the high numbers of patients requiring comprehensive care hence the patient outcome is low (International, 2015). This information can sufficiently convince health care stake holders that there is a gap that needs to be filled in acute hospitals especially in the recent times when cancer treatment and management is a big challenge.
Healthcare Polices and Regulations
Another source that gives a general insight to nursing profession indicates that there are some gaps in nursing profession which need to be addressed, and this will involve amendment of the available policies and standards. These changes will address the procedures through which nurses are selected to serve in public hospitals and the number of nurses that will be available in a given facility to attend to the high number of patients that is always on the increase in the recent times (Lee& Satku, 2016).
It is the role of the stakeholders in healthcare sectors to understand the currents trends that are associated with the aging population which is presenting a high demand for nursing services. It is the time that the government sets up strategies that will address the projected high demand for nursing services shortly. It is time to invest actively in medical education in the current times as this is the only way in which the number of trained and qualified nurses will be increased to improve the overall quality of health services offered (Lee& Satku, 2016). Those already trained should be encouraged on the importance of advancing their education to specialize in various fields as this will produce professionals to deal with the diverse medical needs of the community. Most important for the government is to ensure proper payment terms of nurses as this is the only way that the current shift from public to the private sector will be minimized. It is true to say that cost of nursing services in Singapore will be reduced to affordable levels by increasing the number of registered nurses in the public sector.
Haseltine, W. A. (2016). Affordable Excellence: The Singapore Health System. Washington:
Brookings Institution Press with the National University of Singapore Press.
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Mukhopadhaya, P., Shantakumar, G., & Rao, B. (2015). Economic Growth and Income Inequality in China, India and Singapore: Trends and Policy Implications.
SINGAPORE BANKING SECTOR
Anderson Financial Institute is a banking corporation with the primary aim of investing in the greater banking sector. The organization offers financial services, banking services, and insurance services. With the establishment of the corporation in an efficient manner, various factors are driven towards ensuring the achievement of the primary factors which facilitate the growth of the corporation. The firms aim at delivering to the customer’s efficient financial solutions which would facilitate the creation of a stable economy. Nonetheless, the firm will also offer banking services to the society at low-interest rates for loan and offer their financial expertise to develop the community. The main country of concern for the company is Singapore. Singapore is a country that has its fame derived from an efficient workforce that embraces diversity and globalization. Through an establishment in the country, different aspirations will be matched with an effective model. The country will have deliverables to enhance their stable economy.
Anderson Financial Institute has a concise mission statement that aims at bringing world-class banking service to the locals of Singapore. Nonetheless, the company also aims at bringing up a workforce that appreciates customer centricity as the driving factor of modern corporations. On the other hand, the company targets the middle-income earners of the country and the low-income earners. The market share, when concentrated on the two classes within the society, will give the organization an instructional model of ensuring that there are better avenues to achieve profitability (Dandapani et al. 2008).The company, therefore, wishes to bring to the country a range of products, from the offering of financial solutions to other organizations, the company will also concentrate on the banking sector which will be its original deal in the country. Therefore, Anderson financial institute aims at establishing a stable banking industry in Singapore.
Industry of Interest
Anderson financial firm aims at investing in the banking sector of the society. Singapore has a stable economy that is multicultural and appreciates the diversity of different communities. Therefore, the banking industry of the country is a viable place for the establishment of the organization. Anderson financial institute will therefore opt for the banking industry since there are numerous benefits that they can accrue from the investment. The manner in which the business is conducted in the banking sector makes it primary in handling problems which face the society.
On the other hand, given that the company has a significant history and positive reputation from the banking sector. It is instrumental that there are greater avenues of finding a great acceptance in the society. The Asian community has numerous individuals that appreciate the efforts of banks toward bringing in financial sanity within their establishments (Suffian & Majid, 2007). Through the creation of better avenues for the members of the community to acquire funding, banks have gained popularity within the modern society, and this brings to a clearer perspective the greater need for the good of the community.
Furthermore, by investing in the banking sector, the company will be in an inclination towards the achievement of their mission and vision statements. The mission of the organization directly relates to the action of banking and creation of a better approach to financial issues within the community. Anderson financial company is, therefore, making the right move towards investing in the banking sector of Singapore.
Country of interest
Anderson financial company plans to invest in Singapore. The company will launch its branches within the country and have the regional headquarters of their activities within the same country. Thus, Singapore stands as the headquarters of the company activities within Asia.
Reason for choosing Singapore
After a keen study of the region, the company settled on Singapore as the primary destination for investment. The organization reviewed the progress of the country and its ethics within the contemporary business society. Moreover, the investigations also looked into the relationship between the country’s domestic industries and their international industries. Therefore, Singapore was chosen for various reasons which include:
Singapore has an efficient workforce
Anderson Financial chose the country as their destination due to the workforce that they have. The country ha employees from diverse backgrounds that makes it an effective method of approaching the market from various angles. Nonetheless, the creation of the bank within the state will link it to the entire Asia. The county has a workforce that works to achieve the collective goals that they are ascribed to (Dandapani et al. 2008). Through these collective goals, the organization has the benefit of getting greater profits whenever they carry out their duties.
Singapore has favorable foreign laws and relations.
The government of Singapore recognizes the effort of the foreign entities towards shaping the society and giving it a platform of experiencing the best of services. Regarding the banking sector, the country has laws that cap the interest rates and also provide meaningful guidance to the foreign banks on how to carry out business. The country offers training services to the organization that employ workers and educate them on the diverse nature of the society (Gerrard et al. 2006). The labor laws in the country are also favorable to the international labor laws which provide a significant ground for the creation of an instructional model of controlling the employees and making them have the relevant ways of interacting with their employers. Therefore, the country has great foreign policies that help with the creation of a stable platform for the bank to be established well within the society.
Singapore has a stable banking industry, which requires more players
Notably, Singapore has a high banking sector that serves as a central service center for numerous countries in Asia. For instance, the banking sector in the country gives out loans to China. The local banks in the country enjoy a liberalized environment where their actions are all directed towards the achievement of profit and maximization of the output. Moreover, the presence of mergers and acquisitions, the banking sector of the country is strengthened and attracts a high number of investors. The country is also friendly for the foreign banking institutions as they have tax generous incentives and encourage the involvement of the foreign banks within the society (Dandapani et al. 2008). The actions of the government attract the foreign banks to make the sector greatly competitive and involve the inclusion of better actions towards the creation of a better sector. With an alliance in the industry and generation of better incentives to associate with the domestic banks, the banking industry of the country has grown to international levels that make it instrumental in the development of a better service sector for the economy.
The organization aims at establishing itself within the urban and rural areas in Singapore. The company will ensure that it covers a significant portion of the society that would facilitate their interaction with the customers and bring up an instructional way of acquiring the market share. Through the offering of favorable loans and credits to the companies within the society and individuals, the bank will be in a grand alliance with the community to drive its profit generation activities.
On the other hand, the creation of a scope within the society will help the company to specify on a target market. By concentrating on the mid-level income earner sin the society. Anderson Financial will achieve a significant following since the country has a large number of people who are mid-level income earners (Varma & Budhwar, 2013). Nonetheless, the establishment of an instrumental figure within the society will lead to the generation of likes from the low class in the society and the rural areas. Therefore, the broad scope of the company will be addressed in ways that are pertinent to discussing their problems. The organization will, therefore, address the broad scope in different ways that would ensure profitability and generation of customer loyalty.
Mode of Entry
Anderson Financial plans on creating an instructional model of entry into the Singaporean market. The manner of entry which has been proposed is to acquire one of the local banks within the society and make it have their brand (Dandapani et al. 2008). With this method, the organization will be at the disposal of having their banks customers and rebranding would invite more customers to the organization. On the other hand, through acquisition, the organization stands the chance of having a wider customer base and creates value from the actions.
Anderson Financial has a plan of investing in the Singaporean banking industry. The country has a strong banking sector that would facilitate the growth of the company within the Middle East. Significantly the country has necessary rules that are good at formulating a friendly environment for the foreign banks, and it links the customer to the banks. Notably, Singapore also has a good labor relation system that focuses on the good running of organizations. The labor relations within the country are in line with those at the international levels. Thus, this makes it easy for the companies to blend within the society well. Therefore, the bank will be profitable in Singapore give the characteristics of the country, and it is politically stable nature.
Dandapani, K., Karels, G. V., & Lawrence, E. R. (2008). Internet banking services and credit union performance. Managerial Finance, 34(6), 437-446.
Gerrard, P., Barton Cunningham, J., & Devlin, J. F. (2006). Why consumers are not using internet banking: a qualitative study. Journal of Services Marketing, 20(3), 160-168.
Sufian, F., & Majid, M. Z. A. (2007). Singapore banking efficiency and its relation to stock returns: a DEA window analysis approach. International Journal of Business Studies, 15(1), 83.
(Vol. 20). Routledge.Managing human resources in Asia-PacificVarma, A., & Budhwar, P. S. (2013).