Neoliberalism and the Evolution of Singapore’s Developmental State: Partial Privatization as Problem-Solving

Why did Singapore—fiscally robust, free from external pressure, and historically committed to state-led development—embark on a program of partial privatization in the late twentieth century? This article challenges conventional theories of neoliberal diffusion by showing how Singaporean ruling elites pursued partial privatization as a way to solve long-standing problems. Drawing on parliamentary debates, policy reports, and oral histories, the article traces how these reforms were shaped by the institutional logics of Singapore’s developmental state. Using problem-solving as a heuristic, it demonstrates how state actors selectively incorporated neoliberal policies and rhetoric to resolve perceived problems without abandoning the state’s core architecture. The article identifies three recurrent problems that Singaporean state managers and politicians faced: the possibility of government-linked companies becoming unprofitable, the underdevelopment of a local equities market, and political contestation over the modalities of state management of the economy. In each case, partial privatization offered a solution from the perspective of ruling elites. The article advances a polycentric understanding of neoliberalism, anchoring its emergence in Singapore squarely in the historical legacies, political priorities, and problems of Singapore’s developmental state.