Discuss appropriate policy measures that the Singapore government may undertake to increase the net benefits of globalization

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Discuss appropriate policy measures that the Singapore government may undertake to increase the net benefits of globalization

To increase the net benefits of globalization, the negative impacts of globalization have to be mitigated and the positive impacts of globalization have to be enhanced at the same time. While Singapore may be handicapped by its small market size and lack of natural resources, it seems that these drawbacks could be less of a problem as the world economy becomes more globalised. However, it does not seem to be the case.

Since Singapore government consistently restructures the economy to cope with the challenges of globalization, it hence resulted in structural unemployment. A remedy for structural unemployment is to use supply-side policy which is to provide education, retraining facilities and assistance to move the labour from depressed to expanding industries. This helps to raise the productivity of labour and hence raises the productive capacity. With a more educated workforce, the quality of labour could be raise too. However, the re-skilling and changing mindset of labour require increased government expenditure, therefore incurring opportunity cost. Firms may also reluctant to send workers for training if there were no subsidies or any