This paper directs attention to the rapid industrial changes experienced by the city-state in the past thirty years and the problems associated with a maturing economy. To provide a deeper understanding of the adjustment process, the analysis is done within the context of firm, state, and labour interactions. The analysis indicates that with land and labour resources becoming fully utilised, the city-state adjusts to the requirements of international capital by increasing the regional, technical, and sectoral division of labour.
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