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Within this policy a scheme has been established to actively encourage greater university-industry interaction through consultancy and joint R&D projects. Both universities have established their respective in-house institutes and centers to facilitate university-industry R&D cooperation in addition to providing consultancy services. The polytechnics too offer consultancy services to industry. This has been further strengthened by the National Technology Plan 1991. The plan, in order to accelerate R&D activity, targets to achieve by 1995: (a) the total national expenditure on R&D to reach 2 percent of GDP; (b) the private sector to account for a minimum of 50 percent of this total; and (c) the ratio of the number of scientists and engineers to be 40 percent of the labor force.

Gibson (Savage, Maryland: Rowman & Littlefield Publishers Inc. 1991), pp. 87101. , p. 38. Page 17 (i) Economic dynamism. (ii) National identity. (iii) Quality of life. 18 In this new phase, according to Mr. 19 The Government's massive investment in infrastructure and accompanied by a vigorous interventionist and targeting policy through "fiscal incentives to high-technology, skill-intensive industries, expanding training programs, and adopting corrective wage policy to encourage the substitution of capital for unskilled labor"20 paid dividends.

Finally, I wish to thank David Bell and Khoo Siew Mun for their perceptive and discriminating editorial suggestions and Margot Verbeeck and Jegajothy Vythilingam for word processing and preparing this document for publication. Page vii Abstract The small island Republic of Singapore has developed a state funded, strongly merit-based education and training system as the key ingredient of its strategy towards higher productivity, economic growth and increased living standards. The study demonstrates the capacity and determination of Singapore, to develop an effective and sustainable vocationally-oriented higher education system as a major resource in absence of any natural resources or domestic market.

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