S’pore must chart a new direction now, even though it doesn’t have all the answers yet: Chan Chun Sing

• Mr Chan urged Singaporeans to “chip in” to this new path ahead and understand the need for changes
• Businesses will stay open with tighter measures in place for higher risk activities
• Govt will continue to support growing industries, help suffering businesses generate fresh revenue
• It will also establish the right macro conditions to preserve Singapore’s competitive edge

 

SINGAPORE — Singapore must chart a new direction now for a very different and uncertain future, said Trade and Industry Minister Chan Chun Sing. 

“We do not have all the answers yet, and the ground realities are fast evolving, often without precedents. But we know that staying still is not an option,” he said on Tuesday (Aug 11).

Mr Chan was speaking at a press conference following the release of Singapore’s second quarter gross domestic product figures where MTI downgraded Singapore’s growth forecast for the year to between -5 and -7 per cent, compared with the previous forecast of -4 and -7 per cent.

Urging all to “chip in” and walk the new path together, Mr Chan said that the Government will work with Singaporeans to help them understand the need for changes. 

“The faster we adapt and change, the faster our recovery.  Conversely, the slower we adapt and change, others will overtake us, and opportunities will bypass us,” he said. 

In the next few months, regular updates on the economy and job situation — sector by sector — will be provided with the Government involving unions, trade associations and employers in discussions. 

Mr Chan also laid out the three principles in which Singapore’s “new path” ahead will be based on. 

BUSINESSES TO STAY OPEN

First, businesses will stay open but in a safe and sustainable manner with tighter measures being put in place for higher risk activities. 

Meanwhile, Covid-19 clusters will be isolated “quickly and tightly” so that businesses can remain open.

“It will not be a binary option of open or close. It can be done,” he said. 

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HELP BUSINESSES ADAPT TO NEW WORLD

The second principle the Government will focus on is to help businesses and workers make sense of and adjust to the new world.  

For companies that have the opportunity to grow, for example those in info-comm technology, biopharma and precision engineering, the Government will create an attractive environment for them to flourish. 

“The competition for these new investments has become more intense,” he noted.

The Government will work on getting new businesses in growth areas to start and for businesses to plant their investments here in the long-term to “entrench” Singapore’s role in the global value chain. 

“It is not just about making money now. But building resilient and sustainable systems for the future,” he said. 

And while many of these companies continue to do well amid the economic slump, Mr Chan said they are worried they may not be able to access the global markets in the future, especially in the wake of rising protectionism around the world.

“They are very supportive of our efforts to uphold the global trading system with like-minded countries… and the push for us to have more digital agreements with partner countries so that they can access more markets,” he said.

For companies that are suffering a drop in demand now but will eventually recover, the Government will help these companies generate fresh revenue and become more cost effective. 

Some enrichment classes and event companies, for example, have expanded to online events and services, to build new revenue streams and to adjust to the new way companies are working, he said. 

Finally, for companies that are in industries that have permanently changed, Mr Chan said that the Government will help them “reinvent themselves” to pivot into new markets and products. 

“Some businesses are already acting now. They know that the good old days will not return. Many of the mass-market tourism, Mice (meetings, incentives, conferences and exhibitions) and social entertainment companies are thinking and acting along these lines already,” he said. 

GOVT TO ESTABLISH RIGHT MACRO CONDITIONS

Mr Chan said that the Government will also fully support businesses in this process by establishing the right macro conditions.

To preserve Singapore’s ability to compete for jobs for its people, the Government will strengthen links with the world for markets, supplies, technology and talent. 

“Our aviation and port hub status can never be taken for granted. We will fight to defend our networks and preserve our capabilities,” he said, adding that more details will be released in the coming weeks. 

The Government will also look at “breaking new ground” for digital free trade agreements to open more markets for businesses while preserving existing access to conventional ones. 

Mr Chan reiterated that it will be a difficult time for Singaporeans in the coming months, as retrenchments rise and some companies are forced to close. 

He urged companies to treat workers fairly, with dignity and respect. 

“We are in a crisis of a generation. But we are starting from a much stronger position than the Merdeka generation and the Pioneer generation,” he said, referring to the generations of Singaporeans who saw the country through tough times in its earlier years.