Jeffrey Siow responds to motion on an economy of the future that works for all

Singapore must reinvent itself in a changing world - not by discarding what has made it successful, but by renewing and strengthening its formula, said Transport Minister and Second Minister for Finance Jeffrey Siow in parliament on Wednesday (Aug 5). He said the Workers’ Party’s (WP) proposals in its motion on Singapore’s economy are “very much in line” with the direction of the government’s Economic Strategy Review. However, he noted one significant difference - WP appears to believe that Singapore’s economic model is imbalanced and needs to be fundamentally reoriented; that multinational corporations (MNCs) create wealth, while small- and medium-sized enterprises are held down and Singaporeans receive the benefits through redistribution. Mr Siow said “this is not an academic disagreement, but one that is crucial to policies that we will pursue”. He refuted WP’s claim that the government has a universal land pricing model, saying land is already priced differently at fair market value based on its intended use, and this ensures responsible stewardship of the limited resource. As for the view that MNCs and local firms are competing for a fixed pie, Mr Siow emphasised that Singapore needs both and their growth is mutually reinforcing.