Two MTI heads ‘necessary’ as economy restructures
TODAY file photo
SINGAPORE — With the Republic facing a particularly challenging period of restructuring in the midst of a tepid economic climate, the appointment of two ministers to oversee separate aspects of the Ministry of Trade and Industry (MTI) is a necessary move, said observers and members of the business community.
Commenting on the move a day after it was announced, they said this would allow for greater focus on each area, with some saying it could be a temporary arrangement until the country completes its restructuring process.
Under the new Cabinet line-up announced by Prime Minister Lee Hsien Loong yesterday (Sept 28), Mr Lim Hng Kiang, currently Minister for Trade and Industry, will focus on trade, while Mr S Iswaran, currently the Second Minister at MTI, will oversee industry issues on equal footing as Mr Lim.
Mr Liang Eng Hwa, who was chairman of the 12th Government Parliamentary Committee for Finance and Trade and Industry, said the division of duties between two ministers comes as dedicated focus on industry is needed as part of economic restructuring.
“I don’t see this ... as a permanent kind of feature,” he said. “At the end of the day, industry and trade must come together because whether you export or whether you internationalise the linkages must still be there.”
With growing global competition and fast-paced technological advancements, it would help to have a minister paying special attention to how to “build the next engine of growth for Singapore”, Mr Liang noted. For example, Mr Iswaran could work closely with companies to fine-tune or craft relevant policies to help them progress in a productivity-driven economy.
Mr Ho Meng Kit, chief executive officer of Singapore Business Federation, echoed this view. “With a dedicated minister to focus on the Industry portfolio, greater accountability and attention can also be given to growing local enterprises, particularly the small and medium-sized enterprises (SMEs) sector, as it forms the core of businesses in Singapore,” he said.
Singapore Manufacturing Federation’s secretary-general Lam Joon Khoi said businesses could expect to get more help in expanding trade capabilities, and embracing innovation and productivity on a sectoral level. Having two ministers demonstrates the priority placed on boosting Singapore’s economic growth, he added.
Mr Thomas Chua, president of the Singapore Chinese Chamber of Commerce & Industry (SCCCI), added that he hopes Mr Iswaran will have more interaction with the business community and understand its issues.
He also said better coordination and effectiveness are needed when it comes to issues involving multiple government agencies, and the appointment of Deputy Prime Minister Tharman Shanmugaratnam as Coordinating Minister for Economic and Social Policies could address this.
With the change, Association of Small and Medium Enterprises president Kurt Wee felt this was an “opportune time” to put more emphasis on helping SMEs. A lot more work needs to be done in the area of overseas expansion, creation of bigger markets and control of the cost environment, he said, pointing out that the economic situation is “worrying” given that sentiments are poor and interest rates have been rising the past 10 months.
“We’ll continue to try and push (productivity). In some segments we’ve seen results, in (other) segments they still continue to suffer from cost issues, wage inflation and a small market ... So, there’s a very urgent need to broaden the market base for Singapore SMEs,” he said. It would be ideal if there is a minister dedicated to SMEs, similar to what some other countries have done, he added.
