Regulating Investment Abroad: The Political Economy of the Regionalization of Singaporean Firms

This paper attempts to understand the regionalization of national firms from Singapore within the methodological construct of the regulationist perspective. It aims to demonstrate the usefulness of some concepts in the regulationist perspective for explaining restructuring processes in developing countries, and to evaluate critically the role of some of these concepts—such as regimes of accumulation and modes of social regulation—in illuminating the internationalization of capital through transnational corporations and their associated foreign direct investment. In particular, the paper argues that Singapore's export‐led regime of accumulation manifests inherent contradictions in its dependence on foreign capital, the domination of the domestic economy by state‐owned enterprises, and the relative underdevelopment of indigenous entrepreneurship. While this accumulation process was embedded in an earlier set of social and institutional mechanisms, its contradictions and tensions were not appropriately regulated and contained. When Singapore experienced two major external economic crises in the mid‐1970s and 1985, these shocks and their internal tensions triggered a continuous process of economic restructuring regulated by a distinct combination of social and institutional mechanisms, or “fixes.” One such institutional fix in recent years has been the promotion of the regionalization of Singaporean firms through the social regulation of local labor markets and the state‐led establishment of institutions to facilitate the regionalization drive.