The other half

NO COMPANY is an island, even if it is based on one. That has long been clear to Singapore's export-oriented firms, which continue to excel in electronics, pharmaceuticals and entrepôt trade. The combination of wide-open product markets, world-class infrastructure and squeaky clean commercial courts have put Singapore at or near the top of most international competitiveness rankings. And by scraping through Asia's downturn in good shape, its companies have earned bragging rights throughout the region. But what is more impressive is that only half of Singapore's corporate sector has been doing most of the heavy lifting. How far could the country go if its government manages—as it is now attempting—to motivate the other half?