Competition law, regulation and trade: implications for productivity and innovation in Singaporean manufacturing SMEs

This chapter explores the nexus between competition and productivity in the context of small and medium-sized enterprises (SMEs) in Singapore’s manufacturing sector. Drawing on a study involving 215 in-depth surveys with SME leaders and managers, we explore questions of competition, regulation, and trade, and their implications for productivity and innovation. We find that there is considerable concern among SMEs that the market power of some large competitors is stifling efforts to enhance productivity and innovation. This suggests an important role for competition law and the competition regulator, the Competition Commission of Singapore (CCS), in boosting productivity and innovation. We also find that while SMEs support efforts to broker free trade agreements, they see a strong role for government in helping to identify the opportunities so generated and in building the capabilities needed to take advantage of these.