Chan Chun Sing
Singapore
“Since 2002, the Ministry of Defence (MINDEF) has worked with the autonomous universities (AUs) to establish arrangements that minimise disruption to National Servicemen (NSmen) who are pursuing full-time studies up to the undergraduate level, while meeting the Singapore Armed Forces' (SAF's) operational and training needs.”
“Secondments help to build up the range of competencies and work experiences of public officers to strengthen their longer-term employment relevance and resilience. The Public Service Division's guideline to agencies is to support public officers even while they are on secondment.”
“The priority of our National Servicemen must be their military duties and operational training, to meet the Singapore Armed Forces's (SAF's) operational requirements.”
“In January 2026, I had informed this House that the Government had convened an independent committee to conduct a review of the political salary framework that was laid out in 2012. The Committee has completed the review and submitted its recommendations to the Government in April.”
“All countries seek to develop mutually beneficial partnerships, and the United States-Indonesia Major Defence Cooperation Partnership is one such example.”
“Since the Singapore Armed Forces Volunteer Corps (SAFVC) was established in 2014, over 1,500 men and women have completed training and served as SAFVC Volunteers (SVs). Presently, there are about 1,100 in-service SVs, comprising 52% male and 48% female. About seven in 10 of our in-service SVs are new Citizens or Permanent Residents.”
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“We should be getting a set of three. One in yellow for the senior citizens, one in pink for families with school-going children, and one in blue for young couples. There will be more of these in the Members' Room for Members who wish to have more copies to distribute to their residents to help reassure our residents that we will do what we can to help everyone manage their cost of living issues. Mr Speaker, Sir, let me conclude. Cost of living pressures will always be present in various forms. Managing the challenges is never-ending work. There are many factors that drive price changes. There are also real and perceived gaps between Singaporeans’ aspirations and anticipated means to fulfil these aspirations. More importantly, we recognise Singaporeans’ evolving aspirations for a better life for themselves and their families, and the associated stress of achieving real income growth in a volatile economic environment. The Government remains committed to helping all Singaporeans manage and achieve their aspirations. Beyond creating opportunities for Singaporeans to enjoy real wage growth to meet their aspirations, the Government is also committed to helping Singaporeans stretch their hard-earned dollar. At the same time, we are also cognisant that, with finite resources, support must, first and foremost, be given to those most in need.”
“We will also work with NTUC and CASE to establish a panel comprising relevant stakeholders, such as merchants’ associations, unions and grassroots leaders, to help oversee this effort and look into ground feedback to help consumers stretch their hard-earned dollar, while deterring unfair pricing of consumer necessities. Last but not least, our eighth strategy, leveraging our social enterprises. The Government will continue to work with social enterprises like NTUC to benchmark the prices of various essentials. This was the origin of the WELCOME supermarkets for groceries many years ago. NTUC FairPrice continues to expand its House Brand product range of affordable value-for-money alternatives. We will work with NTUC to establish more NTUC FairPrice Shop stores in our neighbourhoods to make affordable products more accessible to all. NTUC Social Enterprises have, over the years, extended its offerings to include basic insurance, childcare, eldercare services and cooked food options to meet the evolving needs of Singaporeans. By helping to moderate the prices of essential goods and services, social enterprises, such as NTUC, play an important role in benchmarking prices across the board. Mr Speaker, Sir, with your permission, may I distribute the infographics to the Members now before I conclude?”
“With the additional U-Save rebates, 1- and 2-room HDB households, including most 3-roomers, will not see an increase in overall water bills on average. While this strategy is economically and socially sound, it comes with two challenges. First, by not subsidising prices upfront, consumers may experience a "higher sticker price". This may create a disproportionate negative psychological impact because the backend subsidies to help lower-income groups reduce the actual prices paid, is not as obvious or visible. Second, it is always politically more difficult to carry the ground when different groups of people receive varying levels of assistance because they are assessed to have different needs. Regardless of the method of needs assessment, it will often be fraught with debate and challenged by those who receive relatively less help. However, the alternative to give the same help to all without discrimination also cannot be the wisest way to expend our finite resources to help those who need it most. Seventh, enabling consumers’ choice. We will work with the National Trades Union Congress (NTUC) to strengthen CASE's capabilities to better promote consumer awareness and empower consumers to make informed purchasing choices to stretch their hard-earned dollar. One way is to improve price transparency on common household items like groceries and cooked food so that consumers can be more informed. Today, with technology and crowd sourcing platforms, consumers should be much better able to make informed choices on where are the best deals in their local neighbourhoods. We will work with NTUC and CASE to see how best to bring about such platforms for our consumers, tapping on the local networks.”
“The National Environment Agency (NEA) has also announced that 20 new hawker centres with approximately 800 stalls will be built by 2027 and the managing agents appointed to run these new centres, some of which are social enterprises, will also be required to provide affordable food options in each of these hawker centres. Another example is the Early Childhood Development Agency’s (ECDA's) use of the Anchor Operator and Partner Operator Schemes to provide quality early childhood care and education at affordable prices. The Pro-Enterprise Panel will also work with businesses to find meaningful and effective ways to help lower regulatory costs for businesses, which include improving regulatory efficiency, simplifying processes and removing unnecessary licences. Sixth, focusing our help schemes to do more for those with less. This is an accepted principle by most Singaporeans. But we also understand that various groups of Singaporeans would like to see more being done for them, be it in the areas of education, housing, healthcare, transport or other policies. Ultimately, we must forge a social consensus of how much we want to tax the general public to support the desired groups in a targeted manner. For example, we do not subsidise electricity or petrol prices upfront. That would disproportionately benefit wealthier households as they tend to consume more of such goods. Instead, the Government provides U-Save rebates, with households living in smaller Housing and Development Board (HDB) flats getting a higher amount. In Budget 2017, the Government announced a permanent increase to the Goods and Services Tax (GST) Voucher U-Save rebate to offset some of the increases in utility bills for the lower- and lower middle-income households following the water price revisions.”
“Another example is the market for mobile telecommunication services, where the Infocomm Media Development Authority's (IMDA’s) regulatory measures to facilitate greater competition in recent years have led to an increasingly vibrant and competitive mobile market. New mobile operators are offering competitive and innovative mobile plans, including plans that allow for unlimited data, or those that start from zero dollars. Fifth, we must manage the cost of doing business in Singapore. We must continue to simplify our processes and reduce business costs to minimise the pass through of costs to consumers. To keep domestic sources of inflation contained, we will continue to carefully manage domestic supply-side constraints. For instance, the Government will ensure an adequate supply of residential, industrial and commercial space to relieve price and rental cost pressures as demand grows. We will also carefully monitor property market trends and take necessary actions to avoid sharp price changes that are not supported by market fundamentals. As a general principle, we price services fairly to recover costs and discourage over-consumption. However, our Government agencies are also frequently reminded and are committed to keeping our costs under control to avoid imposing additional burden on businesses and consumers. Various agencies are now using the price-quality model for tender evaluations to moderate the excesses of pure price competition. This can be seen in the case of new hawker centre tenders. Since 2012, the National Environment Agency (NEA) has removed reserve rental in the tender for stalls in hawker centres, and 52% of stalls are awarded at bids below reserve rental today.”
“This is where schemes like Adapt and Grow come in to help our workers. Let me move on to the second strategy, that is, to carefully manage the strength of the Singapore dollar. We carefully manage our Reserves and the strength of our dollar to contain imported inflation. The Monetary Authority of Singapore's (MAS’) exchange rate-centred monetary policy, through a gradual appreciation of the trade-weighted Singapore dollar in line with the economy’s underlying fundamentals, helps to preserve our purchasing power. Third, diversifying our sources of supply. We do so from food and water to fuel and raw materials for production to ensure that we are not held ransom by any single source. This bolsters the security and resilience of our resource supply chains, and avoid sharp price hikes when there are disruptions to our primary sources. Fourth, promoting competition in our markets and lowering barriers to entry where possible, to allow Singaporeans to enjoy competitive prices for comparable products. For example, the Energy Market Authority of Singapore (EMA) has progressively opened up the electricity market to competition since 2001. In April this year, EMA commenced the soft launch of the Open Electricity Market in Jurong, allowing 108,000 households and 9,500 small businesses the option to buy electricity from a retailer with a price plan that best meets their needs. Consumer feedback so far has been positive, with thirteen electricity retailers offering a good range of competitively priced plans. I am happy to announce that EMA is working on extending the Open Electricity Market to the rest of Singapore from the later part of this year for all Singaporeans to enjoy the benefits of the open electricity market.”
“Electricity and fuel costs which are influenced by global oil prices are one such example. The prices of certain products are also affected by our market size. Major companies determine their pricing strategies based on the purchasing power and relative bargaining power of different markets. The price of certain medicine is one such example. To manage the various pressure points, we must adopt a multi-pronged strategy. Let me elaborate on our eight-pronged strategy. After this, I will distribute a set of infographics for Members to share with your residents. First, we need to keep our economy competitive. At the macro level, the Government will aim to establish the conditions for companies to create good jobs with sustained income growth that outpaces inflation. Over the last five years, resident households’ income had risen faster than consumer price inflation. Median resident household income from work per member grew by 4.2% per annum in real terms between 2012 and 2017, while that for the lower income deciles rose between 4.2% and 4.6% per annum. In the long run, real wage growth is determined by our ability to raise productivity. Schemes, such as the Productivity Solutions Grant, aim to help companies to do so. Other schemes like the Special Employment Credit support employment opportunities for low-income and older Singaporeans, while the Workfare Income Supplement (WIS) Scheme helps low-wage workers supplement their incomes and build up their retirement savings. We also need to constantly monitor the wages of workers in industries facing significant disruptions. The best way for us to help our workers facing low or stagnating wage growth is to equip them with new skills to take on new jobs ahead of time.”
“We also monitor the inflation for key categories of goods and services, for example, food, healthcare and utilities, because they can have a big psychological impact on the daily lived experience of Singaporeans. In the graphs, Members will be able to see that the inflation rate was lower over the recent five-year period between 2012 and 2017 for all household types, as compared to the five-year period from 2007 to 2012. Inflation rates were also lower for the key components of food, healthcare, and utilities and fuel for these household types. However, we should note the sharp pick-up in inflation rate for utilities and fuel last year, and this was largely due to higher oil prices. Last year, the oil price went from $50-plus per barrel to $70-plus per barrel – a significant increase. CPI-All Items inflation is expected to remain low this year, between +0.5% and 1%. However, rising global oil prices are projected to increase fuel costs and electricity prices. This, coupled with an increase in global food commodity prices, could impact domestic food prices. Consumer prices could also rise moderately alongside a faster pace of wage growth and pickup in domestic demand amidst improvements in the labour market. Accommodation costs are expected to continue to decline with a sustained fall in rentals, thereby dampening inflation. Mr Speaker, Sir, let me move on to some other factors that influence prices. We closely monitor prices to ensure that Singapore remains an affordable home for Singaporeans. There are some factors not within our control. And there are other factors that we have to work hard to constantly manage. As a small and open economy that imports most of our items, we are subject to global economic forces.”
“Mr Speaker, Sir, our Consumer Price Indices capture the absolute price changes of different baskets of goods and services for different groups of Singaporeans. Last year, the Consumer Price Index (CPI)-All Items inflation was +0.6%, lower than the average of +2.3% between 2007 and 2017. In fact, inflation over the past five years between 2012 and 2017, at an average of +0.6% a year, was significantly lower than the preceding five years between 2007 and 2012, which averaged +4%. If we consider the CPI-All Items less imputed rental, the figure was 1.7% for 2017. The 2017 inflation figures for the various household income groups with their respective baskets of goods and services were -0.1% for the lowest 20%, +0.5% for the middle 60%, and +0.8% for the top 20%. Beyond these numbers, I have also asked the Ministry of Trade and Industry to do a check on certain groups of households. Specifically, I asked them to look at the retiree households. For retiree households, the figure last year was -0.4%. However, I asked them to strip out the imputed rental for owner-occupied accommodation from the CPI, because this will give an indication of the inflationary pressures that they might feel from the cash outlay. And inflation for retiree households was +2.1% last year, higher than the other household income groups. We know that inflation is a concern for retirees with no active income from work. This is why the Government has focused much attention on help schemes for our seniors, starting with the Pioneer Generation Package. In addition to transport and healthcare subsidies for the elderly, we are also encouraged to see our social enterprises and businesses stepping up to help ease cost pressures on them by giving our seniors additional discounts.”
“Mr Speaker, Sir, the Government understands and shares Singaporeans' concerns with cost of living issues. This is a multi-dimensional issue. Let me explain. There are absolute measures of how the prices of a particular basket of goods and services change over time. There can also be relative and evolving interpretations of what constitutes an essential basket of goods and services for different groups of Singaporeans. Yet, cost of living pressures can also be an expression of the gap between one’s aspirations and one's anticipated means to fulfil them. Different groups of Singaporeans have different concerns, needs and wants. Elderly Singaporeans, retirees and their families will be more concerned with healthcare affordability. Families with young children and infants may be more concerned about the prices of milk powder and educational programmes. Yet other families may be aspiring to buy their dream house or car. As such, no single measure will express an individual's "cost of living" pressures fully, given the different needs and wants, the evolving aspirations and the potential gap between aspirations and anticipated means. Furthermore, we are also aware that some price items, while not the biggest in absolute impact, can have a disproportionate psychological impact on consumers. For example, water and transport fares fall into this category because they are items consumed daily. The "bunching" of price increases, like the increases in water and electricity prices this month, can also have a disproportionate psychological impact. Mr Speaker, Sir, may I have your permission to distribute the first set of charts to Members of the House?”
“The Gini coefficient published by the Department of Statistics (DOS) is computed based on household income from work. Both employer and employee Central Provident Fund (CPF) contributions are included in the definition of household income from work. This is because CPF contributions are a significant component of compensation from work, and can be used by households for housing, healthcare and investment purposes. Nonetheless, DOS also publishes a Gini coefficient that excludes employer CPF contributions from household income from work. Both Gini coefficients are available on DOS' website. In 2017, the Gini coefficient, which includes employer CPF contributions, was 0.459, while the Gini coefficient which excludes employer CPF contributions was 0.468. The former is lower because there is a cap on employer CPF contributions for employees who have reached the wage ceiling of $6,000. DOS does not publish a Gini coefficient that excludes both employer and employee CPF contributions from household income from work.”
“IMDA also engages the telecommunication operators regularly to conduct exercises on recovering from service disruptions and discuss initiatives to enhance the resilience of our networks. Telecommunication service disruptions sometimes occur due to cable cuts committed by errant contractors. MCI and IMDA have, therefore, put in place several measures to mitigate the risk of such disruptions. For example, the Telecommunications Act requires contractors to employ licensed Telecommunication Cable Detection Workers to detect the presence of underground cables prior to commencing earthworks. In addition, IMDA holds regular dialogue sessions with contractors to encourage the adoption of precautionary measures when carrying out earthworks, as well as the need for training for workers. Where disruption to telecommunication services occurs due to cable cuts, IMDA will not hesitate to enforce any breaches of the Telecommunications Act by prosecuting the relevant parties in Court. MTI and the Energy Market Authority also have similar measures in place for earthwork damage to electricity cables, and these are enforced through the Electricity Act, relevant Code of Practices and licensing conditions. To minimise the impact on consumers in the event of disruptions, IMDA incentivises telecommunication licensees to restore services quickly by imposing penalties that will take into account the duration of the disruption, amongst other factors. IMDA also prescribes baseline requirements for key telecommunication licensees’ business continuity planning to facilitate recovery during service disruptions”
“The Government recognises the importance of reliable and secure infrastructure, both in terms of power and telecommunication systems, as Singapore gears up for increasing digital operations as a “Smart Nation”. On the power system front, SP Power Grid, the national grid operator, has a comprehensive infrastructure planning and maintenance regime to increase system reliability and minimise disruptions. This includes building in redundancy for critical components, continuous monitoring of the transmission network, and conducting preventive maintenance. Workers are trained and reminded to adhere strictly to operating procedures. That said, there can still be the occasional instance of human error, such as during the blackout on 1 June 2018. We have adopted a calibrated risk-based approach in systems planning, with a framework in place to enable quick restoration of power when needed. This calibrated risk-based approach has served us well, with our power system being among the most reliable in the world. For instance, from financial year (FY) 2013 to FY2017, Singapore's average annual disruption per consumer ranged from 12 seconds to 45 seconds, compared to latest FY15 figures of four minutes for Tokyo and 23.4 minutes for Hong Kong. For telecommunication infrastructure, the Ministry of Communications and Information (MCI) and the Infocomm Media Development Authority (IMDA) have also put in place measures to ensure resilience. These include Codes of Practices that set baseline requirements to ensure that our telecommunication networks are fit for purpose and on par with international best practices, as well as to encourage telecommunication operators to adopt more advanced resilience practices.”
“On top of these broad-based efforts, the Government works with industry and unions to foster improvements in Productivity, Jobs and Skills, Innovation, and Trade and Internationalisation within and across 23 key sectors, through the Industry Transformation Maps. JTC also works with industry to develop high-rise Innovative Facilities with shared services that help SMEs in the same value chain improve their land productivity and streamline production processes for higher labour productivity. Our industry partners play an instrumental role in driving these productivity efforts. Trade Associations and Chambers (TACs) can spearhead industry-level initiatives, aggregate the needs of their members, and coordinate the deployment of solutions. To support our TACs across all sectors in these endeavours, Enterprise Singapore co-funds up to 70% of supportable costs through the $115 million Local Enterprise and Association Development programme.”
“In 2017, overall labour productivity, as measured by real value-added (VA) per actual hour worked (AHW), rose by 4.5%. Due to data collection constraints, data on real VA per AHW by firms’ small and medium enterprises (SME) and non-SME status are not available. The Government also measures labour productivity in terms of real VA per worker. In 2017, real VA per worker in the overall economy increased by 3.8%. Based on the Ministry of Trade and Industry's estimates, SMEs recorded slightly lower real VA per worker growth of 3.2% in 2017. A breakdown of SMEs’ productivity performance by sectors is not available. The Government has put in place several initiatives to support SMEs in raising their productivity. Across all sectors, SMEs can approach any of the 12 SME Centres for free business advisory services. The SME Centres collectively engage over 20,000 businesses each year through advisory sessions, capability workshops and outreach events. The number of SMEs that embarked on capability development projects with support from the SME Centres almost doubled from 600 in 2013 to 1,100 in 2017. SMEs can also approach experts at the two Productivity Centres for assistance in productivity solutions. The Singapore Innovation and Productivity Institute focuses on manufacturing, engineering, logistics and related industries, while the Singapore Productivity Centre focuses on the retail, food services and hotel sectors. SMEs can also leverage technology and digital solutions to raise productivity through schemes like the $110 million Productivity Solutions Grant for pre-scoped equipment and information technology solutions.”
“Public officers who joined the Service after 1994 are placed on the MediSave-cum-Subsidised Outpatient (MSO) scheme. This is a portable medical benefit scheme which provides 2% of an officer's monthly salary as additional MediSave contributions, in lieu of hospitalisation benefits, and an annual subsidy of $500 for outpatient treatments. Under the MSO scheme, an officer may receive an additional MediSave contribution of up to $2,730 annually1. The MSO scheme is regularly reviewed to ensure it remains market competitive. In the last review in 2015, the Civil Service increased additional MediSave contributions from 1% to 2%. All Singaporeans are covered under MediShield Life. On top of that, public officers can use their additional MediSave contributions to purchase Integrated Shield Plans (IPs) to supplement their MediShield Life coverage. In addition, the Public Service Division (PSD) has also appointed a panel of insurance companies to offer portable IPs at discounted premiums to public officers and their dependants. These IPs are individual contracts between the officers and insurers and will continue to cover officers even after they change employers. Over and above the MSO scheme benefits and PSD's facilitation for public officers and their dependants to take up portable IPs at discounted premiums, one particular Statutory Board (SB) had further arranged for its officers to be covered under a Group Hospitalisation and Surgical (H&S) plan. This is even though there is no obligation to do so. Under H&S plan, the insurance is not portable and will not cover officers after they leave the SB. The H&S plan of the SB expired in December 2017. The SB is working to arrange for an insurer to offer H&S coverage to its officers.”
“The professional services Industry Transformation Map (ITM), launched in January this year, will further support various industries, including aircraft leasing, as we enhance capabilities and spur greater innovation in our professional services firms. Third, our aircraft leasing industry is complemented by deep knowledge and strong support from our aviation and aerospace industries. Changi Airport is one of the busiest airports in the world, and we have an established base of aerospace companies and talent to provide quality maintenance, repair and overhaul (MRO) services to support key aviation players, including lessors. The aerospace ITM, also launched in January, will chart our efforts to transform our aerospace industry and strengthen our MRO sector. Even as we are doing relatively well today, we need to continue to work with stakeholders to nurture a comprehensive aviation and aerospace ecosystem and a robust financial sector critical for aircraft leasing activities. By ensuring our competitiveness as Asia's aircraft leasing hub, the industry will continue to generate economic spinoffs and good jobs to benefit Singaporeans.”
“Currently, around 40% of commercial aircraft used by airlines are leased rather than directly purchased, and the size of the global aircraft leasing industry stands at US$261 billion. Driven by a burgeoning middle class and increasing air connectivity in the Asia Pacific region, the total number of commercial aircraft is expected to more than double by 2036. This represents a significant business opportunity for aircraft lessors. Ireland has been a pioneer in aircraft leasing since the 1970s and continues to capture the largest global market share at 65%. Singapore is the top aircraft leasing hub in the Asia Pacific with 20% global market share. Today, we host operations for eight of the top 10 aircraft leasing companies. Nonetheless, we are keenly aware of the strong competition. Hong Kong, for instance, is stepping up in aircraft leasing, buoyed by the increase in air travel from China, and aspires to expand its market share to 18% in 20 years' time2. Singapore's strong reputation as a major aircraft leasing hub is founded on several factors. First, we have an extensive network of Avoidance of Double Taxation Agreements (DTAs) with more than 80 jurisdictions, including growing Asian markets, such as China, India and Vietnam. Second, Singapore's strong financial industry, together with our growing professional services ecosystem of law firms, banks and tax advisory firms, provide support and financing options to the aircraft leasing business, making us an attractive base for the top aircraft lessors in the world. Companies looking to develop aircraft leasing capabilities in Singapore may also avail of the Aircraft Leasing Scheme, which provides concessionary tax rates on qualifying income from leasing of aircraft or aircraft engines.”
“We are aware of recent reports of sales persons attracting passersby to their booths by using offers of free gifts and thereafter marketing certain products to them. If consumers have reason to believe that these suppliers have engaged in practices, such as pressure-selling or false claims, they can approach the Consumers Association of Singapore (CASE) with details of these practices for CASE to assist them in seeking redress from the suppliers. The Consumer Protection (Fair Trading) Act (CPFTA) provides consumers protection against unfair practices, such as false claims and pressure selling. Under CPFTA, CASE can invite suppliers to cease their unfair practices through a Voluntary Compliance Agreement. The Competition and Consumer Commission of Singapore, as the administering agency of CPFTA, is also empowered with investigation and enforcement powers to take action against errant retailers who persist in unfair practices. Consumers are also encouraged to take pre-emptive measures to protect themselves against unfair practices. For example, they can check the reputation of the supplier, ask questions about the products and examine the products before making the purchase. CASE will also continue to educate consumers to be alert to the free gifts sales tactics through its outreach efforts.”
“We will continue to work with all like-minded partners to uphold a rules-based multilateral trading system, and work towards greater regional integration which is the best way of maximising opportunities for our companies and supporting job creation for Singaporeans.”
“The US has stated its openness to bilateral trade agreements and has remained engaged in various international forums to share its views on improving the rules-based multilateral trading system. Mr Speaker, let me conclude by reiterating Singapore’s stance. Singapore’s external linkages that have made us more resilient in facing uncertainties in the global economy are best safeguarded by a strong set of WTO rules and enforcement, and by our network of Free Trade Agreements (FTAs) which we will continue to expand and deepen. We are in good standing with all our trading partners, including the US and China, and have urged that ongoing trade disputes be resolved through negotiation. We have also forged ahead with like-minded partners to continue paving the way for regional integration to bring about more opportunities and growth. The signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in March this year is a tangible demonstration of the parties’ commitment to the collective goals of greater trade liberalisation and regional integration. ASEAN and our FTA partners are also pressing on with efforts to reach substantive conclusion of the Regional Comprehensive Economic Partnership (RCEP). Our trading partners are also constantly looking for opportunities to improve trade links. The EU and China, for example, which Mr Henry Kwek has asked about, are working to improve trade connectivity between Asia and Europe to increase economic opportunities. We have an FTA in place with China, and another that is pending with the EU. With the FTAs in place, our companies are better positioned to seek out and benefit from new opportunities arising from new trade linkages and supply chains that are formed.”
“1% of Singapore’s gross domestic product, and any sustained disruption is unwelcome for the region. In the meantime, our economic agencies are working closely with companies to identify any disruptions promptly and restructure their supply chains where necessary. Third, our greatest concern is the impact from an escalation of the trade conflict into a vicious cycle of tit-for-tat measures among major economies. Should these measures reach a tipping point that triggers a sharp and sustained fall in global business and consumer confidence, or a tightening of global liquidity conditions, the macro-economic environment will fundamentally change. In this scenario, the impact on global consumption and investment on top of the disruption to trade flows will significantly impact Singapore's open economy. Amidst these developments, there are strengths in the composition and features of our economy that serve us well. These include the strong trading networks and diversified sectors we have developed over the years, which will enable companies in Singapore to navigate the disruptions and seek out new opportunities and alternative suppliers and demand markets. Our agencies will continue to facilitate this process and provide support where needed. Ms Thanaletchimi and Mr Henry Kwek have also asked about whether the norm of free trade agreements and the multilateral trading system of the World Trade Organisation (WTO) will change. Indeed, the commitment to free and open trade has come under pressure, with greater protectionist instincts and the US’ unilateral measures to address what it has deemed unfair trade practices. Nevertheless, for the large majority of economies, the commitment to the WTO remains unchanged. Numerous economies have made clear their stance on this.”
“Our agencies are in contact with impacted companies to facilitate applications for product exclusion and to explore alternative markets. Second, there will be indirect impact from tariffs that are not targeted at Singapore. Members will have read about the US and China's imposition of tariffs on each other. Tariffs applied to products worth US$34 billion from each country have kicked in, with more on the way. With the EU, Mexico and Canada also imposing retaliatory tariffs on the US for the tariffs on steel and aluminium, there is a significant risk of widening disruption to global supply chains. While these tariffs do not directly affect our exports, they would have spillover impact due to our role in the global supply chains. For example, Singapore companies that produce intermediate goods used as inputs in the production of China’s exports to the US may see softer demand for their goods. The net impact on the Singapore economy and our workers is less easily quantified, given the fluidity of the US and China’s tit-for-tat responses. The complexity of global value chains is also such that amidst disruptions, there will be potential for firms to mitigate some of the impact by redirecting exports of intermediate goods to other markets. In addition, traders in China which find imports from the US less competitive because of the tariffs may also source more from the Association of Southeast Asian Nations (ASEAN) region. There is, therefore, some offsetting effect. Our modelling indicates that based on the tariffs on product lines that have been announced, the net impact is likely to be modest. However, this assumes no further escalation in trade tensions between the US and China. On the whole, bilateral trade between the US and China indirectly contributes to 1.”
“Mr Speaker, the United States (US) and China are major economic partners to countries around the world. The trade conflict between the US and China and, indeed, with other trading partners, such as the European Union (EU), taking reciprocal measures in response to the US’ tariffs, will have global consequences. Not only will it inhibit global trade and global growth, there will also be disruptions to supply chains impacting businesses, jobs and consumers. Our economic agencies are closely monitoring the impact on Singapore which will be transmitted at three levels. First, impact from higher generalised tariffs that are applicable to the majority of countries, including Singapore. This is what we call the direct impact. Second, the indirect impact arising from disruptions to global supply chains due to the tariffs imposed by the US and China directed at each other. And third, the consequences of a broad-based slowdown in global trade flows if escalation of the trade conflict among the US, China and other trading partners spills over to business sentiment and other factors of growth. Let me elaborate on each of them. First, tariffs directly applicable to Singapore affect a relatively small set of products. These are essentially US tariffs applied globally on solar cells and modules, washing machines, steel and aluminium. Our exports of these products to the US account for about 0.1% of our total domestic exports to the world. While this is relatively modest, specific Singapore-based companies in the general manufacturing and electronics sectors that export such products to the US will become less competitive compared to manufacturers in the US when the tariffs are added on.”
“Mr Speaker, may I have your permission to take Question Nos 9 and 10 together?”
“Even as Singapore continues to build stronger links and collaborate closely with our trading partners to boost growth and create jobs, we will continue to safeguard our trade interests and resist protectionist practices which could disrupt the flow of global commerce.”
“The United States (US) announced a series of safeguard measures in the form of tariffs on solar panels and washing machines under section 201 of the 1974 Trade Act in January 2018, as well as steel and aluminium under section 232 of the 1962 Trade Expansion Act in March 2018. In 2017, Singapore's domestic exports to the US were S$228.9 million for solar cells and modules, and S$36,000 for washing machines. Domestic exports to the US totalled S$4.6 million for steel, and S$7.1 million for aluminium. In aggregate, these exports made up 1.4% of Singapore’s total domestic exports to the US, and a smaller 0.09% of Singapore’s total domestic exports to the world. The US tariffs have the effect of making the prices of these products more expensive to US importers, which may reduce their demand for overseas products. Given the modest share that the products affected by the US tariffs have as a percentage of Singapore's total domestic exports, the direct negative impact of the US tariffs on the Singapore economy is limited. Nonetheless, we are closely monitoring developments on these safeguard measures, which do impact some companies in Singapore. Singapore has registered our concerns with the relevant US departments and consulted with the US on possible exemption from the safeguard measures. As a small and open economy, having free and connected markets is critical for Singapore. It is important that Singapore and like-minded partners uphold the rules-based multilateral trading system and ensure that such safeguard measures do not become entrenched and turn into barriers to trade.”
“Ultimately, the success of our economic restructuring efforts depends on the collective efforts of all stakeholders. Besides the Government, which will serve as an enabler to support this transformation, our trade association and chambers and unions also have a key role to galvanise firms of every size, and mobilise workers in every sector, to be part of this transformation journey. Our companies need to reconsider the way they operate and compete, and how they partner one another to sustain competitiveness and create good jobs.”
“The Committee on the Future Economy (CFE) had identified the key global and structural shifts, as well as rapid technological changes and growing sentiments against globalisation that would impact us, in developing a comprehensive set of recommendations to guide our economic strategy for the next five to 10 years. Given this, our key economic restructuring efforts will be centred on strengthening enterprise capabilities, building strong digital capabilities, deepening the skills of Singaporeans, and continuing to work together with other economies to stay open and connected, build stronger links, and collaborate closely to boost growth and competitiveness. One of the recommendations of the CFE was the development of Industry Transformation Maps (ITMs), which are industry-specific roadmaps that organise our economic restructuring efforts. The ITMs were developed through an integrated and coordinated tripartite approach that brought together key stakeholders. We have since launched ITMs for each of the 23 ITM sectors, which together cover 80% of the Singapore economy. Each ITM is tailored to the opportunities, needs and challenges of specific sectors. Some sectors, such as those in the Manufacturing and Modern Services clusters will focus on growth and strengthening their competitive edge, while other sectors, such as those in the Lifestyle and Built Environment clusters, will be transforming for higher productivity and better jobs. There will be bright spots within every sector. The ITMs are dynamic plans that will be updated to respond to changes in the economic environment. We will continue to monitor the progress of our ITMs, refining strategies where necessary to ensure they stay relevant as new trends emerge.”
“There is yet a third impact because when the tariffs are targeted even at third-party countries, it affects the trade flows between and amongst these countries, which will then have yet another round of consequent effects on Singapore. So, all these are complex issues. It requires us to watch the trends carefully, as Mr Patrick Tay has mentioned. It requires us to review our economic models to make sure that we understand the shifts in the trade flows and ask ourselves what other actions do we need to undertake in order to safeguard ourselves from all these uncertainties. So, these are the things that MTI will continue to watch carefully, not just in isolation, but also with the other Government agencies and also with our other partners, trade partners included.”
“Mr Speaker, Sir, let me first thank Mr Patrick Tay for his observations. His observations are right. If I may just elaborate on some of those observations. Indeed, any unilateral actions will have direct and indirect impact. All these, cumulatively, will cause a lot of uncertainties to the market. There are uncertainties that are of immediate consequence because the trade flows and trade patterns are disrupted. There are also indirect impacts that affect the longer-term investments and these create another round of uncertainties. How should Singapore manage such situations? First and foremost, as an economy, we are an open economy. We must make sure that we are not overly dependent on any particular markets, which is why a couple of days ago, I mentioned during the Debate on the President's Address that we must continually expand and diversify our markets to make sure that we are not overly dependent on any particular market for our products and investments. So, that is the first order of business. I have also asked MTI staff and economists to do an in-depth study of the possible implications of a long drawn out trade war or an escalating trade war. This will require further study because there are at least a few levels of implications for us. The first level of implication is that if the tariff goes up on specific products, there is a direct impact on the cost of business, the cost of the factories, companies and so forth. That is the easy part. But there is also an indirect impact, which is, even though the tariffs are not targeted at Singapore, it will cause the global trade flows to shift. And when the global trade flows shift, it will have a knock-on impact on Singapore. Whether it is positive, negative, to what extent, we will need to study this carefully.”
“Mr Speaker, Sir, China and the United States (US) are major economic partners to countries around the world, including Singapore. To date, the direct negative impact of the tariffs announced by the US and China on the Singapore economy is limited, given the modest share that the affected products have as a percentage of Singapore's total domestic exports. The Ministry of Trade and Industry's (MTI's) analysis estimates the tariffs to directly impact about 0.09% of our domestic exports to the world. Nonetheless, we are closely monitoring developments, particularly for any longer-term indirect impact on companies and workers. Our economic agencies are in close contact with companies that may be affected. Singapore has also registered our concerns with the relevant US and Chinese departments and is continuing to engage them. Singapore is a strong proponent of free trade and supporter of the rules-based multilateral trading system. We remain concerned that an escalating cycle of expanding unilateral tariff measures will result in negative spillover effects on global supply chains. Any disruption to global trade flows or trade volumes will affect big and small economies alike. We hope that countries will exercise restraint and avoid further escalation of tensions.”
“To keep Singapore successful, our systems and politics must be special and refreshed, suited to our own unique circumstances and needs. We will also need to do more to inspire yet another generation of Singaporeans to come forth to serve Singapore, in spite of. We can, and we will, together, write the next chapter of our Singapore story that is meaningful, engaging and real for all Singaporeans. Our 1965 generation has achieved that with much less. They had overcome their share of the challenges to leave us the Singapore we have today. There is absolutely no reason why our generation which has so much more cannot leave behind an even better Singapore for the next generation. We can, together, become Singapore Unlimited. Unlimited by our geography, unlimited by our size, unlimited by our resources. We can only be limited by the scale of our ambition and drive. And our scale of ambition and drive will determine how far we progress as a nation for the next 50 years and more. Mr Speaker, Sir, I support the Motion. [Applause.] 2.46 pm”
“All along, my belief is that we want political leaders, not just politicians, to lead Singapore; leaders who weigh options carefully before acting decisively and never opt for just the most expedient idea or solution for personal interests or short-term gains. It also means not shying away from making difficult or unpopular decisions, but being guided by that resolve to always do what is in the best interests of Singapore and Singaporeans, never shirking responsibilities towards our current and future generations. Always putting our country and people first, our political leaders must treat people with sincerity. They know that our achievement today is built on the foundation of what our previous generations have left behind. Therefore, the responsibility of every generation is to leave behind a better Singapore for future generations. They also know that the success of each generation is defined by the success of the next generation. (In English): Mr Speaker, Sir, let me conclude in English. In the next lap of our country's history, we will have our fair share of challenges and opportunities for our generation. But we can be confident that we will build an even brighter future for ourselves and our future generations. To secure our place in the world, we have to value add to stay relevant, build our networks and be able to compete globally, in order to transcend our constraints of geography and resources and, instead, turn them into opportunities. As pioneers of our generation, we must continue to break new grounds, build on our fundamentals that have brought us this far, so that we can continue to enable the next generation to succeed even more than us.”
“This provides continuity in our interaction with others and for us to compete at the highest global level with consistency in vision and execution with purpose. All these leadership traits – commitment, teamwork, courage to evolve, a sense of mission – are what we will need to keep our systems special. At this juncture, I would also like to place on record our appreciation to Mr Low Thia Khiang, as leader of the Workers’ Party for the last 17 years. Allow me to continue in Mandarin, Mr Speaker, Sir. (In Mandarin): [Please refer to Vernacular Speech.] Mr Speaker, although Mr Low Thia Khiang is a Member of the Opposition, he is, nevertheless, a fellow Singaporean and very much a part of Team Singapore. While we may not always agree with his perspectives or methods, we, nevertheless, appreciate his efforts to work together to build a better Singapore, as the leader of the Workers' Party. Although Mr Low may have different perspectives, but, from his speeches, we can detect his pride in Singapore and his determination to defend our sovereignty. Here, we would like to thank Mr Low Thia Khiang. We look forward to similarly working with Mr Pritam Singh and the Workers' Party to put Singapore's and Singaporeans' interests first, always. Mr Speaker, Sir, politics is not just about winning votes. It is about serving our country and people. To win votes by stoking anger and unhappiness may be a common practice in politics elsewhere, but this is negative politics and is not constructive. To win the hearts and votes of our people, we must work hard to develop sound policies for our common future. I hope that all of us will continue to define our politics in constructive ways.”
“Next, beyond having good and nimble systems, we must have good people. People build systems. People also corrupt systems. We have seen examples of both democratic and socialist systems failing; often, by people with the wrong motivations. To bring forth good people to serve is a never-ending challenge. It is difficult enough to bring forth good people who would sacrifice their personal and family interests for the country. This is especially so when the country is already successful, peaceful and prosperous. But we must continue to try. We need to find the strongest set of individuals not just to solve today's current problems, but also to prevent future problems from arising in the first place. This means that we need diverse skillsets and perspectives, so that we can combine them as necessary and tackle challenges together, when circumstances change. This cannot be left to chance. The PAP Government will spare no effort. This applies to the political leadership team, as much as it applies to the Public Service and business community. Agreeing with us is not the prerequisite. Agreeing to put Singapore first and foremost is the prerequisite. Having found the strongest set of individuals is still not enough; what we must then do is to mould them into the strongest team possible. Countries with more resources may afford to have less cohesive leadership teams and still survive. But, for Singapore, we must ensure that we have the strongest leadership team possible, for others to take us seriously and be willing to work with us. For Singapore, this teamwork does not just exist within one generation. It is also between generations. Our leadership model is to have overlapping generations of leadership teams to help the next generation do even better.”
“They want to be heard, considered and respected. So, we have to keep channels open for everyone to share their views and work on strengthening our engagement. If we can do this well, we will remain cohesive as a nation. If we can have a common vision, a common set of goals and putting our national priorities above all, we will emerge stronger than ever. Mr Speaker, Sir, let me touch on the last set of topics I would like to speak on today and, that is, keeping our systems refreshed and special. Singapore has come this far because of trust, teamwork as well as our ability and guts to develop our own systems to meet our unique needs. As a small city-state with a multiracial society, situated in a volatile region, without a conventional hinterland and with no one else to depend on for our defence, our circumstances are, indeed, unique. And while we study other systems and adapt them where suitable, we must not copy blindly or become "intellectually colonised". We must remain prepared to develop systems that work best for us. More importantly, for us to also constantly update them to meet our evolving needs. This has been our approach on issues like National Service, HDB and housing, CPF, as well as the GRC system and Elected Presidency. Today, we are also fostering stronger collaboration and synergies and tapping on different networks in society for their views and expertise. For example, in our efforts to renew our economy through the ITMs and help our workers seize the opportunities ahead, we will not just involve the Government agencies alone. It must also include our Trade Associations and Chambers, our enterprises and the Labour Movement. Rather than a "whole-of-Government" strategy, we will work on a "whole-of-nation" strategy.”
“Fifth, beyond economic and social development, our most critical piece of work is to rally our nation together. Our people must not merely be economic sojourners. They must have the natural instincts to defend what is ours, to build upon what we have and stay put even when the chips are down. A nation is not just about economic benefits. It is also about the sense of community and contribution. A true nation is one where its people will stay and fight for its future and build it all up even when the chips are down. This is the spirit of the 1965 generation and this is what we want to imbue in every generation of Singaporeans. How we communicate and work as a team will establish the foundation for our identity as Singaporeans. Minister Indranee Rajah will speak on this important topic of our Singapore identity and Minister Heng Swee Keat will also discuss how we intend to engage and partner fellow Singaporeans for the next lap. Last but not least, for Singaporeans to identify with one another and with this country, there must be trust between people and Government as well as amongst Singaporeans ourselves. To foster trust, leaders must lead by example, develop strong connections across different segments of our population, communicate with them effectively to mobilise them. The contest of ideas is constant. In fact, this has intensified in this digital age. We must work harder to let our people see and understand an issue for what it is; helping our people to become better informed of the challenges, options and rationale behind our choices. Only in this way can we all become more discerning, stay vigilant and own our choices and solutions together. With higher education, Singaporeans’ aspirations and expectations also evolve.”
“Social inequality is also partly caused by our human natural instincts to pass on wealth and privileges to our next generation. If left unchecked, our people may lose faith in our system of meritocracy and this can hurt our social compact. Can we mitigate the forces that widen social inequality? How can we better distribute the fruits of growth to a broad majority to prevent stratification as a society? We have seen the fallout from others who did not do so. Hence, upholding social mobility is something that we must take seriously. We want everybody to have a good start and to achieve their full potential. This means ensuring that opportunities are accessible to all who are hardworking, talented and committed; that opportunities are not just tied to academic grades, but also to the right aptitude and skills. Minister Ong Ye Kung and various Members will address some of these challenges. Fourth, as pioneers of our generation, it is also our responsibility to continue building and planning ahead for the next generation. As we progress towards SG100, we need to start planning not just for the next 50 years but also beyond. Many of our decisions today will determine whether the next generation can have an even better living environment than ours. For example, how do we refresh our HDB flats and estates? How do we prepare our transport, utilities, data infrastructures for the next lap? Minister Lawrence Wong and Senior Minister of State Janil Puthucheary will speak about these challenges and our responses. But the bottom line is this: we must never think that we are ever finished with building Singapore. We must never think that we are ever done building Singapore.”
“A*STAR and Enterprise Singapore will lead this and work closely with our companies – be they large local enterprises or small, medium enterprises and trade associations – for all of us to realise this together. Senior Minister of State Chee Hong Tat will speak more about this. Second, fostering an inclusive society. Every generation aspires to do better than the previous. This is positive and this is what drives us to improve. We are aware that Singaporeans, particularly those who fall into the middle-income, middle-age category, are feeling the stresses and strains of technological and business disruptions. As leaders, it is our responsibility to ensure that everyone progresses together. In keeping faith with the Government, Singaporeans want us to understand their fears, concerns and aspirations. We need to continue to better help the striving broad middle group to keep improving their lives. We need to make sure that our training and skills upgrading are relevant and accessible, helping our workers to access opportunities throughout their entire lifecycle. We must do better for the weak and vulnerable in society. But beyond providing immediate relief, we must also enable them to do better for themselves. Minister Ng Chee Meng and the Labour Members of Parliament will elaborate more on the Labour Movement’s efforts, while Minister Masagos Zulkifli and others will speak about how we can foster a caring and inclusive society that is truly meritocratic. Third, to uphold social mobility. As society matures, social mobility tends to slow down, with social inequality becoming more apparent over time. This is often the result of "social clustering" of people from similar backgrounds.”
“We need to also focus on what we call the Gross National Income (GNI) of what we do in Singapore and beyond. It is not just about giving Singaporeans the best opportunities here in Singapore, but it is also about helping Singaporeans to seize the opportunities beyond Singapore. Mr Speaker, Sir, let me now turn to what it means for us to be "pioneers of our generation" so that we can create a better future for all Singaporeans together. To be pioneers of our generation, we must be clear-eyed about our challenges. Let me sketch out some of these challenges which my teammates will elaborate throughout this debate. There are at least six areas that we need to focus on: having an innovative economy, building an inclusive society, ensuring social mobility, building our future Singapore, building our national identity and building trust. Let me start with the first, on an innovation-driven economy. As any society matures, it is usual for it to become more conservative – choosing to uphold the existing system, rather than breaking new grounds. We cannot allow this to happen in Singapore. We need to keep up our vitality and verve. It is one thing to be the best-in-class for ports and airports. But it is another to be even better, ready for tomorrow's needs, ahead of time. It is one thing to beat someone else in a competition, it is another to beat our own standards, even when we are at the top, so that Singaporeans can have even brighter prospects in the future. We need to ensure that the pioneering spirit lives on by embracing change and innovation. Our enterprises must innovate and scale up and we need to better translate investments in research and development, into new capabilities and enterprises.”
“We need to move fast before others leapfrog and overtake us. Today's competition is no longer linear. Having a headstart does not mean that we will always be ahead. We can capitalise on finance and data flows by building on our reputation as a trusted financial and data hub. These "non-physical" dimensions of connectivity are increasingly essential to reinforce the physical dimensions of connectivity that we already have a headstart on. If we can strengthen and complement our connectivity across all dimensions, we can continue to transcend our physical challenges. Third, as global production and supply chains shift, we, too, must stay agile to connect to the new shifts. We need to move from getting others to trade with us, to trade through us, to also include for others to trade on our Singapore platforms. PSA is a fine example. Since the 1980s, we knew that we could not possibly compete with other mega ports in the world in terms of size, no matter how much we try to expand our port or reclaim the entire southern coastline from Changi to Jurong. Hence, PSA updated its strategy to become a global port and supply chain operator, to compete at the system and network level, rather than at the port level. Soon, the competition followed. Today, PSA is working with partners to use the PSA platform, regardless of where the trade flows may be. It is like having an "Intel" chip on an operating system inside the global trade flow operations. Our economy is maturing. To achieve sustained and quality economic growth, we must not only be able to attract activities here, we must also venture out. For the next lap of our economic growth story, we cannot just look at the Gross Domestic Product (GDP) of what we do in Singapore only.”
“Our ability to network also depends on Singaporeans' ability to understand and work across cultures and nationalities. Besides enabling Singaporeans to gain overseas exposure, we must also be able to work with talented people from elsewhere locally. We must have the diversity of talent, both local and global. Foreign professionals with knowledge, skillsets and competencies working shoulder-to-shoulder with skilled Singaporean talent, cross-pollinating ideas and bringing out the best in each other. Such dynamism is what keeps Singapore a vibrant, exceptional place to do business in and this is the vital ingredient for our economic future. I have always aspired that we will, one day, build a global network of more than three million Singaporeans, 30 million Singaporean friends and, perhaps, 300 million Singaporean fans. And, together, we will write the next chapter of the Singapore story. To secure our place in the world, we must also better connect to the world as our hinterland, gaining access to resources and markets, and we need to step up in three areas. First, we need to widen our portfolio of markets to diversify our risks of relying on any single particular market. Our economic agencies are working hard to re-negotiate new Free Trade Agreements (FTAs) and upgrade existing ones. We are continuously exploring new markets and support bilateral and multilateral trade efforts. Second, we need to go beyond the conventional dimensions of air, land and sea connectivity, as expressed by Member Mr Liang Eng Hwa, by ensuring that we are connected to the world in the dimensions of data, finance, talent and technology. We have much work to build on to entrench ourselves as a global node for data, finance, technology and connectivity.”
“What is clear is that no one deals with Singapore for our domestic markets or resources alone. Instead, they leverage upon us as a platform to reach the region and the world. To remain effective and attractive, we must develop people with a deep understanding of the region and the world, so that we can create value when others come and do business with us. Our education and training models must similarly evolve in tandem to support this. Beyond the technical skills which we already excel in, Singaporeans must also be equipped with the mindsets and skillsets to operate and compete globally. This must be our competitive advantage and we can do more. I am encouraged by the ongoing efforts that give our people this very global exposure that we desire. Students who join Singapore Management University (SMU) from August this year, will need to participate in at least one overseas programme, before they can graduate. SMU believes that this will give its students a strong competitive edge and open doors to international networks and opportunities. I agree with them. More of our institutions should do so. We must also help Singaporeans – individuals, companies and businesses – access and penetrate the global markets better. We need to ask ourselves: can we redefine the role of the overseas Singapore chapters and chambers to build the necessary networks? These networks should be formed to achieve three outcomes: to connect Singapore to the world, to connect the world to Singapore and to connect fellow Singaporeans to compete in the world. To this end, EDB and associated agencies will collaborate to better organise and expand our overseas outreach. We will build a Singapore Talent Network to engage Singaporean families, friends and fans to be part of the Singapore Story.”
“First, to be relevant to China, we cannot rely on old mindsets and solutions. China is not looking for “hand-me-down” solutions. They are looking to develop their own solutions to their own unique challenges; sometimes by themselves, sometimes with partners. Second, given the different interests and perspectives, knowing only the central government will be necessary but insufficient. To do business with China, we must understand the different provinces and personalities as well. Only then can we provide more relevant ideas for mutual benefit in a timely manner. Now that China has moved beyond attracting foreign investments into venturing abroad, we must ask ourselves how we can play a role in partnering the Chinese to explore third markets or how we can become a platform for them to reach out to third markets. However, this does not mean that we become more Chinese or do we replicate the western model for them. Instead, we must contribute to the partnership as Singapore – a multiracial and multicultural society, capable of developing unique solutions to our shared challenges, having learnt from both the East and West. There are many successful Singaporeans making waves in China because they bring this unique value. I had, earlier today, shared a video on my Facebook that illustrates this. The short film shows how enterprising and spirited Singaporeans can be and how we can be relevant to China at different levels. How we relate to China must also be how we relate to the rest of the world. With the US, we not only deepen collaboration with American companies in areas, such as smart-city solutions and e-commerce, we are also an established gateway, a launch-pad, for American companies seeking growth opportunities in the region.”
“Third, why we must continue to keep our systems refreshed and special to keep our country successful. Let me start with Singapore's place in the world. The relative shift of geopolitical and economic weight between the West and the East, as epitomised by the US and China, will define the global security and economic environment for many years to come. Many ask: which side should we be on? This is not the right way to frame the issue. As a small country with an open economy, we believe in a rules-based, connected and interdependent world. Our task is not in choosing sides. Small states, more than any others, must be principled. If others ever attach a price to our position or stand, no one will take us seriously ever again. We were the host to the historic meetings between China and Taiwan – the Wang-Koo meeting in 1993 and the Xi-Ma meeting in 2015. We will be the host for the upcoming summit between the US and North Korea in June. Our principled stand and neutrality were some reasons why Singapore was chosen for these meetings. Our task and priority is to ensure that we remain relevant. To do this, we need to have a deep understanding of the different interests, institutions and individuals shaping global developments. All of us – Government, businesses and private individuals – must understand the world and, collectively, remain alert to the forces impacting us and for us to navigate them carefully. Let me illustrate with an example. China is a fast-evolving giant and China is not monolithic. Its interests vary and differ across its security, economic and social dimensions. There are also different provinces and different layers of government, each with its own perspectives and priorities. This tells us two things.”
“Mr Speaker, Sir, for 53 years, Singapore has not only survived, but thrived in spite of it. We lack the conventional hinterland for access to resources and markets. So, we worked hard to grow our economic lifelines, connecting ourselves to the world. And in building a collective future for ourselves, we strived hard to unite our people from different races, languages and religions. There is, indeed, much that we can be proud of. However, we must never be complacent about our shared future. In these times of rapid geopolitical shifts, technological disruption and transition, many Singaporeans are concerned, and understandably so. Many ask very simple questions: can Singapore continue to thrive? Will there be opportunities for future generations to similarly realise their potential? Will we remain united despite the many forces that threaten to pull us apart? These are important questions and I am heartened that Singaporeans are concerned with these important issues. While we must be alert and alive to the challenges, we need not be afraid. Challenges there will always be; so, too, will opportunities. Our challenges do not define us; our responses will. Our challenges are not insurmountable. And just like the generations before us, we, too, can be "pioneers of our generation". Pioneers who will build and leave behind a stronger foundation. Pioneers who define success not just by how well we do for ourselves, but also enabling the next generation to do even better than us. Today, I will cover three broad areas. First, how we must stay relevant to secure our place in the world in an uncertain geopolitical and rapidly evolving economic environment. Second, what we, as "pioneers of our generation", must do to create a brighter future for all Singaporeans.”
“We will remain an open economy, with a pro-business, pro-competition and pro-innovation environment. We will meld the best ideas, talent and enterprises of the world in Singapore. We can and will transform our economy, as all stakeholders pull together to create good jobs and opportunities for our people.”
“ESG and the Economic Development Board (EDB) will work closely with each other, and with other agencies, such as the Agency for Science, Technology and Research (A*STAR) and the Infocomm Media Development Authority (IMDA), to support enterprises in these endeavours. We want enterprises in Singapore, local and foreign, big and small, to be best-in-class, and to have deep capabilities that the world wants. That is why we are pressing on with the Industry Transformation Maps. MTI will work with our enterprises, Trade Associations and Chambers, unions and workers to champion transformation and growth across our economy and to create good jobs and opportunities for our people. Our people are at the core of our economy. Our workers are motivated, cohesive and willing to learn. They are key to why we have been able to attract companies to invest in Singapore. The successful execution of our strategy depends on our people. With the opportunities ahead of us in Singapore and abroad, we will support our workers to take on challenging assignments in regional and global markets. As we deploy technology and build new capabilities, we will also equip our workers to be digitally confident, so that they have the skills and the capabilities to take advantage of opportunities in the future economy. We will remain open to talent from around the world that complements our local workforce and raises our competitiveness, especially in new growth areas. Through the Global Innovation Alliance, we will strengthen our linkages to innovation hubs across the world. Our students will be connected to the world; they will transcend borders and be inspired by new ideas. Our people will find exciting opportunities to pursue, and diverse talent with whom to collaborate.”
“We have established an Infrastructure Office to bring together local and international partners across the value chain to identify opportunities and facilitate investments and financing. This will enable these enterprises to tap on the rising infrastructure demand in the region. We will also position Singapore as a test-bedding hub for startups developing new products, services and solutions for regional and global markets. We must remain a trusted and well-connected hub for global multinational corporations (MNCs) seeking to tap on Asia’s growth. These MNCs will bring with them ideas, innovative capabilities and expertise to create new value for Asian markets based on our insights. We seek also to be the go-to place for Asian MNCs that are taking their business global. Amidst these, MNCs, in working with local suppliers, will help to transfer knowledge to and deepen capabilities of our enterprises, and strengthen our corporate ecosystem. They will also create good jobs which will place our people at the forefront of developments for their industries. Enterprise Singapore (ESG) will work with all enterprises who want to grow and transform. ESG will be enterprise-centric and walk with enterprises at different stages of their growth, including to tailor programmes to their specific needs. For example, we will simplify access to assistance programmes for small and medium enterprises (SMEs) looking to upgrade their capabilities, while providing more customised support for growth-oriented enterprises to deepen their capabilities and innovative capacities. We will also support our enterprises’ internationalisation efforts through our global networks and encourage partnerships among enterprises so that they are better placed to seize new opportunities and projects abroad.”