Economic transformation the 'most critical challenge' facing Singapore: Heng Swee Kea
SINGAPORE: While the announcement of the planned increase in the goods and services tax (GST) may have received the most attention, the “most critical challenge” facing Singapore is in transforming its economy, Finance Minister Heng Swee Keat said on Thursday (Mar 1).
Speaking during his round-up speech on the Budget debate, Mr Heng stressed that growing the Singapore economy is not only the best way of ensuring strong and sustainable revenues but also “the most important way for our people to realise their aspirations.”
“This task is growing more urgent by the day, as structural changes in the global economy and technological advances disrupt the status quo,” he said. “Our strategy is to position Singapore as a Global-Asia node of technology, innovation and enterprise.”
“This means fostering pervasive innovation throughout our economy, it means building deeper capabilities in our firms and our people, and it means forging stronger partnerships at home and abroad, to build, scale and ride on the region’s growth together.”
In his speech, Mr Heng responded to questions from MPs on the progress of Singapore’s economic transformation, and preparing workers for future jobs.
URGENT NEED TO PRESS ON WITH INDUSTRY TRANSFORMATION MAPS
AdvertisementAdvertisementHe stressed that Singapore urgently needs to press on with the implementation of its Industry Transformation Maps (ITMs) to achieve economic transformation.
Highlighting examples of Singapore companies that are “developing know-how” to move into higher-value markets, Mr Heng urged all stakeholders – like businesses, trade associations and chambers, the labour movement and Government agencies – to double down on transformation efforts and communicate the importance and urgency of transformation to their members. Companies in traditional industries, he pointed out, are also transforming their businesses through innovation.
He added that internationally, people are paying attention to the “increasingly vibrant innovation scene in Singapore”.
“This year, Singapore climbed three places in the Bloomberg Innovation Index, to become ranked as the third most innovative economy globally,” he said. “Google has substantial operations in Singapore, with more than 1,000 staff in functions such as engineering and R&D.”
“These are encouraging signs of progress. We must build on this momentum.”
Mr Heng noted that over the years, the Government’s broad-based schemes have built awareness about productivity and innovation. But he stressed that Government grants are meant to catalyse companies’ transformation, and should not become permanent support.
He referred to the Wage Credit Scheme, in particular, as a “transition scheme that we extended but will taper down".
He said: “It provides temporary support for businesses that raise wages for Singaporean workers, while they press on with efforts to transform and become more productive."
CONTINUING TO INVEST IN WORKERS
Mr Heng pointed out the importance of continuing to invest in Singaporeans to ensure they are equipped with relevant skills to take advantage of new opportunities. But he added that even as Singaporeans are supported in the pursuit of opportunities, there is a need to ensure that Singaporean workers remain sufficiently protected.
“For those who are self-employed by choice, we aim to better address their concerns and challenges, for instance in legal protection, social security and skills development,” he said. “For those who would prefer regular employment, we are keen to help them do so.”
He added that the tripartite workgroup formed by the Government last year has identified several key common challenges that self-employed people face. The Manpower Ministry, he said, has accepted the recommendations in the workgroup’s report, and further elaborate on their strategies at their Committee of Supply (COS) debate.
Mr Heng also brought up the issue of foreign manpower in Singapore, which he said businesses have asked about. Agreeing with MPs that Singapore’s ageing population and shrinking workforce are major challenges, he said economic growth will slow, unless businesses make full use of “this narrow window, before our workforce shrinks further”, to re-double their efforts to raise productivity.
At the same time, however, there is a need for a “calibrated inflow of foreign workers”, especially in areas of critical shortages, he said.
“China, the world’s most populous country, launched its ‘Thousand Talents Plan’ in 2008, to draw in the best talent from around world for strategic projects. Today, China has far surpassed its initial targets,” he said. “For us to thrive, we must be equally strategic, to develop our Singaporean talent and to draw in the right complement of international talent.”
“In this way, we can draw in the skills mix to support new industries that create better job opportunities for Singaporeans.”
But this is not the first time there has been a major push to transform and upgrade the economy, said Mr Heng. And he stressed that everyone has a part to play.
He said workers need to continually upgrade their skill-sets to be ready for the future, businesses should press on with innovation and build deep capabilities and partnerships while trade associations and chambers should step up to encourage firms to do more.
“We must move ahead boldly to safeguard our continued survival and prosperity,” he said. “Let us have confidence, keep our eyes on the horizon and move forward together.”
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SINGAPORE: While the announcement of the planned increase in the goods and services tax (GST) may have received the most attention, the “most critical challenge” facing Singapore is in transforming its economy, Finance Minister Heng Swee Keat said on Thursday (Mar 1).
Speaking during his round-up speech on the Budget debate, Mr Heng stressed that growing the Singapore economy is not only the best way of ensuring strong and sustainable revenues but also “the most important way for our people to realise their aspirations.”
“This task is growing more urgent by the day, as structural changes in the global economy and technological advances disrupt the status quo,” he said. “Our strategy is to position Singapore as a Global-Asia node of technology, innovation and enterprise.”
“This means fostering pervasive innovation throughout our economy, it means building deeper capabilities in our firms and our people, and it means forging stronger partnerships at home and abroad, to build, scale and ride on the region’s growth together.”
In his speech, Mr Heng responded to questions from MPs on the progress of Singapore’s economic transformation, and preparing workers for future jobs.
URGENT NEED TO PRESS ON WITH INDUSTRY TRANSFORMATION MAPS
AdvertisementAdvertisementHe stressed that Singapore urgently needs to press on with the implementation of its Industry Transformation Maps (ITMs) to achieve economic transformation.
Highlighting examples of Singapore companies that are “developing know-how” to move into higher-value markets, Mr Heng urged all stakeholders – like businesses, trade associations and chambers, the labour movement and Government agencies – to double down on transformation efforts and communicate the importance and urgency of transformation to their members. Companies in traditional industries, he pointed out, are also transforming their businesses through innovation.
He added that internationally, people are paying attention to the “increasingly vibrant innovation scene in Singapore”.
“This year, Singapore climbed three places in the Bloomberg Innovation Index, to become ranked as the third most innovative economy globally,” he said. “Google has substantial operations in Singapore, with more than 1,000 staff in functions such as engineering and R&D.”
“These are encouraging signs of progress. We must build on this momentum.”
Mr Heng noted that over the years, the Government’s broad-based schemes have built awareness about productivity and innovation. But he stressed that Government grants are meant to catalyse companies’ transformation, and should not become permanent support.
He referred to the Wage Credit Scheme, in particular, as a “transition scheme that we extended but will taper down".
He said: “It provides temporary support for businesses that raise wages for Singaporean workers, while they press on with efforts to transform and become more productive."
CONTINUING TO INVEST IN WORKERS
Mr Heng pointed out the importance of continuing to invest in Singaporeans to ensure they are equipped with relevant skills to take advantage of new opportunities. But he added that even as Singaporeans are supported in the pursuit of opportunities, there is a need to ensure that Singaporean workers remain sufficiently protected.
“For those who are self-employed by choice, we aim to better address their concerns and challenges, for instance in legal protection, social security and skills development,” he said. “For those who would prefer regular employment, we are keen to help them do so.”
He added that the tripartite workgroup formed by the Government last year has identified several key common challenges that self-employed people face. The Manpower Ministry, he said, has accepted the recommendations in the workgroup’s report, and further elaborate on their strategies at their Committee of Supply (COS) debate.
Mr Heng also brought up the issue of foreign manpower in Singapore, which he said businesses have asked about. Agreeing with MPs that Singapore’s ageing population and shrinking workforce are major challenges, he said economic growth will slow, unless businesses make full use of “this narrow window, before our workforce shrinks further”, to re-double their efforts to raise productivity.
At the same time, however, there is a need for a “calibrated inflow of foreign workers”, especially in areas of critical shortages, he said.
“China, the world’s most populous country, launched its ‘Thousand Talents Plan’ in 2008, to draw in the best talent from around world for strategic projects. Today, China has far surpassed its initial targets,” he said. “For us to thrive, we must be equally strategic, to develop our Singaporean talent and to draw in the right complement of international talent.”
“In this way, we can draw in the skills mix to support new industries that create better job opportunities for Singaporeans.”
But this is not the first time there has been a major push to transform and upgrade the economy, said Mr Heng. And he stressed that everyone has a part to play.
He said workers need to continually upgrade their skill-sets to be ready for the future, businesses should press on with innovation and build deep capabilities and partnerships while trade associations and chambers should step up to encourage firms to do more.
“We must move ahead boldly to safeguard our continued survival and prosperity,” he said. “Let us have confidence, keep our eyes on the horizon and move forward together.”
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