At first glance, Hong Kong and Singapore appear undeniably similar in terms of population and economic growth. One of the reasons why both Hong Kong and Singapore have prospered so much is as a result of the earlier entreport trade that later developed into labor intensive manufacturers for the world market(Greer, 2002). Both economies are export based economies and are among the few countries whose foreign trade exceeds their GDP whereas the per capita income in both economies have risen consecutively each year since 1960 making the two economies some of the most impressively performing economies globally.
Manufacturing Industry’s Heavy Reliance on Labor-intensive Manufacturing Operations
Over the last two decades, both Hong Kong and Singapore have developed into global centers for labor-intensive manufacturing industries becoming the world’s largest produces of variety of products and services varying from garments to the production of electrical equipments. This is one of the strategies being applied by firms in both economies to enhance he continued economic development and progression.
Use of highly skilled professionals
This is another strategy being used by firms in both economies to enhance the economic development and maintain the sustained growth and performance. In most organizations today, human resource is viewed as a source of competitive advantage over both domestic and global competitors. There is also a greater awareness on the importance of the use of highly developed skills as well as the overall benefits of distinctive organizational cultures and management processes that are being applied in modern day firms in both economies.
Developing Information Technology for Sustained Economic Growth
The recent development in the world of communication has brought a global revolution that has transformed the business world completely. Both knowledge and information have grown in terms of quantity and accessibility making business processes more efficient and effective. One initiative taken by Hong Kong to foster economic growth is the building of highly wired offices a situation that has led the government to shift its focus from intervening in information technology processes to offering full support for the same.
The best strategy of increasing economic competence by any firm in the two economies is the use of highly skilled professionals in both the manufacturing and the service industry. It is well established by both economic and scientific research that human capital is one of the main factors that encourage innovation and the developments in technology.