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SINGAPORE: The government will set up an Economic Strategies Committee to study the long-term economic transformation of Singapore. It will be headed by Finance Minister Tharman Shanmugaratnam.
Singapore has taken decisive measures to tackle the economic crisis, said Prime Minister Lee Hsien Loong. But even as Singapore's approach to economic development remains valid, Mr Lee said there is a need to review specific strategies to develop different sectors.
He said: "We have to let the resources shift from the businesses which are shrinking to the businesses which are growing, and gear up for the changed new world, rather than wait in vain for old business to come back."
So the prime minister has tasked the Economic Strategies Committee, which includes members from the public and private sector, to look into growth opportunities abroad.
These include developing new markets in emerging economies such as the Gulf; seeking out niche opportunities - such as manufacturing aerospace components - in developed countries; and exporting Singapore's unique expertise - like its urban planning capabilities - to other Asian cities.
With regard to strengthening local corporate capabilities, Mr Lee said the country can work to attract the next tier of global companies that are smaller than the Fortune 500 multinationals but still large by Singapore standards.
Examples include the Mittelstand sector from Germany, and Berg Propulsion, a leading Swedish manufacturer of marine propellers and thrusters, which is already located here.
He said the Republic can also be the base for Asian MNCs to internationalise because the country is familiar with these Asian companies and at the same time operates by Western business norms.
For example Focus Media, China's leading providing of advertising platforms, has chosen to locate here.
More will also be done to grow local companies. Mr Lee added: "We are trying many ways to do this and we are willing to do more.
"There is no simple answer to this question and I do not believe this can be done by the government simply pouring money in, or one of the favourite quick proposals, setting up 'Temasek II'. The critical factor is not availability of money or capital.
"The critical thing is that you need to build up the entire enterprise ecosystem - the whole environment where you can attract talent, develop entrepreneurship, which means people with bright ideas, the passion, the drive, and the organisational ability to take a spark to a brainwave, to a start up, to a company, to an IPO, and then we hope, a Fortune, and a roaring success.
"They need professional management, they need to invest in technology, they need to develop distinctive brands. It's not an easy thing to do, but it's something which we will work at."
Other priorities attracting top talent from the world are studying resource efficiency and gearing up for climate change. So for example, the government will study the use of underground space to overcome land limitations.
It will also encourage energy conservation, so Singapore can grow more sustainably and be less affected by high prices.
The committee will develop the main recommendations in time for next year's Budget, which usually takes place in February.
According to the Finance Ministry, the list of Economic Strategies Committee members and further details will be released in two weeks. - CNA/vm
Click here to view the full transcript of the Prime Minister's speech.
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