Globalisation has wiped out jobs, relocated factories, hastened mergers and acquisitions, intensified competition, and restructured the world economy – but it has also brought hope and optimism, as the world now has greater cost efficiency, better price rationalization, a bigger market, and an overall increase in aggregate demand supply of better-quality commodities and finished products. The positive impact of globalisation has been felt by airlines, shipping lines, tourism, telecommunications, the oil and energy industries, banking and finance, real estate development and environmental industries. This impact is likely to be sustained.
Sectors that do not benefit directly or indirectly from globalisation because of capital and technology constraints, lack of a global network, or are caught unprepared for globalisation, require assistance. They are likely to be in conventional industries and trading sectors that cater mainly to the domestic market.
Tan Kok Leong
Principal, TKL Consulting
Monday, February 13, 2006