SOUTHEAST ASIS The Long Road Ahead Second Edition SOUTHEAST ASIA The Long Road Ahead Second Edition LIM Chong Yah Professor of Economics Nanyang Technological University W World Scientific NEW JERSEY · LONDON · SINGAPORE · SHANGHAI · HONG KONG · TAIPEI · CHENNAI This page intentionally left blank Published by World Scientific Publishing Co. Pte. Ltd. 5 Toh Tuck Link, Singapore 596224 USA office: Suite 202, 1060 Main Street, River Edge, NJ 07661 UK office: 57 Shelton Street, Covent Garden, London WC2H 9HE British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. Proceeds from the royalties of this book will be paid direct to the NTU Student Emergency Fund. SOUTHEAST ASIA: THE LONG ROAD AHEAD (Second Edition) Copyright © 2004 by World Scientific Publishing Co. Pte. Ltd. All rights reserved. This book, or parts thereof, may not be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording or any information storage and retrieval system now known or to be invented, without written permission from the Publisher. For photocopying of material in this volume, please pay a copying fee through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA. In this case permission to photocopy is not required from the publisher. ISBN 981-238-724-2 ISBN 981-238-725-0 (pbk) Printed in Singapore. (00)copyright.p65 1 1/5/04, 4:25 PM (cid:1) For My Loved Ones NANA FERN & YANG, WUN & CHRIS, LYNN & GREGOR, RON & CLAIR SHENGWU, HUANWU, SHIMEI, SHIQUAN, SHAOWU, SHIWEI (01)dedication.p65 5 12/10/03, 10:06 AM This page intentionally left blank (cid:1)(cid:2)(cid:2) (cid:1)(cid:2)(cid:2) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:5)(cid:7)(cid:8)(cid:6)(cid:1)(cid:4)(cid:5)(cid:7)(cid:3)(cid:9) Born in the British Straits Settlement of Malacca in 1932, he was awarded a Malacca Settlement Scholarship to study Economics at the University of Malaya, then located in Singapore. Later, he won a British Commonwealth Scholarship to read Economics at the University of Oxford, where he obtained his doctorate degree. He taught Economics at the University of Malaya (in Kuala Lumpur), where he became the first Head of the Division of Applied Economics. Subsequently, he was Reader and later Professor and Senior Professor of Economics at the University of Singapore (later renamed the National University of Singapore), where he was also Head of the Department. He is currently Professor of Economics at the Nanyang Technological University and Emeritus Professor at the National University of Singapore. For nearly three decades (1972–2001), he served as the Founder Chairman of the National Wages Council, Singapore. He also served as the Founder Chairman of the Skills Development Fund Advisory Council. Recently, he was appointed as Consultant to the Mauritian Government on wage reforms. He was the Founder of the Federation of Asean Economic Associations (FAEA), and became its President on three separate occasions. He once served as Senior Economic Advisor to ECAFE and Economic Consultant to the World Bank Lester Pearson Commission on World Development and UNESCO-IAU Commission on Higher Education and Economic Development in Southeast Asia. He was the Founder Chairman of the Singapore National Committee for Pacific Economic Co-operation (SINCPEC). Professor Lim publishes widely. His impressive research and publication record includes more than 160 refereed journal articles, monographs and books. His book publications, as a single author, include the Economic Development of Modern Malaya (1967), Economic Development in Southeast Asia (1981), Economic Restructuring in Singapore (1984), Development and Underdevelopment (1991), Economic Essays by (02)author.p65 7 12/10/03, 10:07 AM (cid:1)(cid:2)(cid:2)(cid:2) (cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:6)(cid:11)(cid:12)(cid:10)(cid:2)(cid:9)(cid:13)(cid:11)(cid:14)(cid:7)(cid:8)(cid:11)(cid:15)(cid:4)(cid:16)(cid:17)(cid:11)(cid:18)(cid:4)(cid:9)(cid:19)(cid:11)(cid:12)(cid:7)(cid:8)(cid:9)(cid:19) Lim Chong Yah (2001) and Southeast Asia: The Long Road Ahead (2001). His publications have been translated into Chinese, Malay and Japanese. One has gone into Braille. For his eminent scholarship and outstanding public service, he received many distinguished awards, including The Distinguished Service Award by the National Trades Union Congress in 1999, and in 2000, The Distinguished Service Order (Darjah Utama Bakti Cemerlang) by the Singapore Government. There is also a Professorship under his name established by the National University of Singapore. He was conferred the Doctor Honoris Causa by Soka University in Japan, awarded an Honorary Professorship by Hainan University and Honorary Chairman of the Hainan University Council by the Provincial Government of Hainan. The Indiana University conferred on him the John W. Ryan Alumni Award for “Distinguished Contribution to International Education”. He is married with four grown-up children and six grandchildren. His hobbies are mountain trekking, gardening and golfing. (02)author.p65 8 12/10/03, 10:07 AM (cid:1)(cid:2) (cid:1)(cid:2) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:8)(cid:9)(cid:10)(cid:6)(cid:11)(cid:12)(cid:6)(cid:2)(cid:3)(cid:4)(cid:6)(cid:13)(cid:14)(cid:2)(cid:3)(cid:8)(cid:5) * 1967. Economic Development of Modern Malaya, Kuala Lumpur: Oxford University Press. Reprinted in 1969. * 1971. Elements of Economic Theory, with Lee Sheng-Yi and Chia Siow Yue, Kuala Lumpur: Oxford University Press. Translated into Chinese and Malay. Adapted for use in Pakistan. Second Edition, 1975. Third Edition, 1984. * 1973. Economic Structure and Organisation, with Chia Siow Yue, Bhanoji Rao and Ow Chwee Huay, Kuala Lumpur: Oxford University Press. Translated into Chinese and Malay. Revised Edition, 1977. Went into Braille. * 1981. Economic Development in Southeast Asia, Singapore: Federal Publications. * 1984. Economic Restructuring in Singapore, Singapore: Federal Publications. * 1986. Report of the Central Provident Fund Study Group, Chairman of Group, Singapore Economic Review, Special Issue, Vol. XXXI, No. 1. * 1988. Policy Options for the Singapore Economy, with Associates, Singapore: McGraw-Hill. Translated into Japanese, 1995. * 1991. Development and Underdevelopment, Singapore: Longman. * 1998. Wages and Wages Policies: Tripartism in Singapore, Co-Editor and Contributor, Singapore: World Scientific. * 2001. Economic Essays by Lim Chong Yah, Singapore: World Scientific. (03)others.p65 9 12/27/03, 2:18 PM