‘Ability to innovate and tap global markets’ will determine S’pore’s next phase of growth
Minister Chan Chun Sing speaks at the Tanjong Pagar GRC and Radin Mas SMC lunar new year dinner. Photo: Jason Quah/TODAY
SINGAPORE — More than ever before, the next lap of Singapore’s growth story will depend on its people’s ability to innovate and tap the global markets, said Minister in Prime Minister’s Office Chan Chin Sing.
Mr Chan, who is also the labour chief, said: “We cannot and can never rely on manpower growth to sustain economic growth. Neither can we depend only on the domestic market. Instead, we have to always rely on productivity growth and innovation to penetrate external markets.”
Speaking at a Chinese New Year dinner for constituents in Tanjong Pagar and Radin Mas, Mr Chan spelt out how Singapore can sustain its economic vitality and competitiveness, amid an ageing population and stagnating local manpower growth beyond 2021.
Currently, the country’s outward-facing export-oriented industries are doing “much better in terms of productivity growth”, compared to domestically-oriented sectors such as the care sector as well as the traditional retail, food and beverages and construction clusters, which are “still too manpower intensive – more than what we wish them to be”, said Mr Chan.
While productivity grew 4.5 per cent last year, hitting a seven-year high, he noted that the headline statistics “do not tell the whole story”. he said. “Beyond the average numbers, we have quite a spread,” he added.
On the care sector, he stressed the need to find ways to “take care of our elderly without committing a disproportionate part of our workforce” to this segment alone.
To that end, the Ministry of Health (MOH) and the Ministry of Social and Family Development (MSF) are working together to explore new community care models. The Ministry of National Development is also designing a “new generation of flats” to help the elderly live independently and age in place.
It was announced during the Budget on Monday that the Government will expand the Community Networks for Seniors initiative by 2020 and consolidate these services under MOH, in order to streamline the delivery of social and health services to seniors.
From April 1, MSF will transfer its social aged care functions under the Senior Cluster Network and other programmes to MOH.
Meanwhile, the Government must continue to help outward-oriented companies grow their external markets, with internationalisation being “not an option” but a core part of Singapore’s economic strategy, said Mr Chan.
“This will enable more of our people to move towards and work in the higher productivity sectors and enjoy better wage growth prospects,” he said. He noted that this has been of the Government’s work in many areas, including the Committee on the Future Economy and Budget 2018. Among other initiatives, Finance Minister Heng Swee Keat announced during his Budget speech that a new Association of Southeast Asian Nations leadership programme will be launched this year to help the next generation of business leaders plan their expansions into the region.
Mr Chan also touched on the Government’s foreign manpower policy in his speech on Saturday.
He reiterated that if Singaporeans wish to maintain the current ratio of two citizens to one foreigner in the workforce, they must accept that “when local workforce growth is zero or negative, foreign workforce growth too must be zero or negative”.
He said: "If so, this means we cannot rely on manpower growth for economic growth. Instead, we must depend on productivity growth and redouble our efforts to achieve this."
Alternatively, if the wish is to achieve total labour force growth when local manpower growth is zero, "this would mean requiring more foreign labour". He added: "We will then need to move beyond the current ratio... If this is the case, then we need to seriously tackle the issues of social integration."
Looking ahead, Mr Chan said Singapore is "determined and confident" of the future. "So long as we stay united, be clear eyed about our challenges, and face them squarely together, there is absolutely no reason why we cannot celebrate SG100 with greater pride and confidence," he said.
