Are traditions hindering innovations in Singapore?

The republic is at risk of regression without structural reforms.

Closely-held traditions are hindering innovations in Singapore. A report by Macquarie Research revealed high levels of traditionalism are keeping Singapore from turning into the "Boston of the Orient".

Macquarie noted that Singapore has already maximized Smithian growth, which places emphasis on relative competitive advantage and benefits of division of labour. The report reiterated that Singapore now needs to turn to Schumpeterian growth, which emphasises entrepreneurship and innovation that shift the production curve and creative destruction.

"Whilst Singapore is very well positioned for Smithian growth, it is at this stage far less suited for Schumpeterian growth. It is not totally clear that Singapore would be able to overcome this hurdle. The future lies in imagination and innovation. The challenge facing Singapore (and to some extent Malaysia) is that both societies remain quite traditional and value obedience more than innovation," stated Macquarie.

The report showed that in the Survey of World Values, Singapore responders tend to highly value child’s obedience but do not value as much imagination. Also, whenever science and religion conflict, a significant proportion of the Singapore population would prefer religion. At the same time over 90% of Singapore responders would prefer to describe themselves as either very much or to some extent preferring traditions and customs.

"In the case of Singapore, there is growing evidence of rapidly declining productivity growth rates, thus raising a prospect of regression. Thus, it does not appear that there has as yet been a deep enough cultural shift away from obedience and memorization and towards innovation in either Singapore or Malaysia," the report noted.