Parliament affirms amended WP motion on the future of S’pore’s economy
Singapore's economic strategy has delivered good jobs, rising incomes and social mobility over successive generations, said Minister for Trade and Industry (Energy and Industry) Tan See Leng. The Government's responsibility now is to ensure that this model continues to de…
Intelligence analysis by Llama
Singapore's economic strategy has delivered good jobs, rising incomes and social mobility over successive generations. The Government's responsibility now is to ensure that this model continues to deliver in a very different world.
Imagine Singapore's economy is like a big plane that needs to fly smoothly to deliver good jobs and rising incomes to its people. The Government is like the pilot who needs to make sure the plane has a good runway, clear rules, and open markets. But the plane also needs fuel, which is the entrepreneurs and workers who need to keep learning and building their skills to take off and fly high.
Analysis
A $60B Vote of Confidence
Singapore's economic strategy has never been about growth for its own sake, but for it to percolate through the broad economy to improve people's lives, said Minister for Trade and Industry (Energy and Industry) Tan See Leng. The Government's responsibility now is to ensure that this model continues to deliver in a very different world.
The WP motion suggested that the country's economic model was in need of reforms, but Tan said its strategy has delivered good jobs, rising incomes and social mobility over successive generations. The Government's responsibility now is to ensure that this model continues to deliver in a very different world.
The Government will play its part by maintaining a trusted, open economy, investing for the long term, addressing gaps in capability, financing and market access, and helping workers prepare for change. But others have to play their part as well, he added, saying businesses must transform and invest in people, workers must keep learning, and entrepreneurs must build, compete, persevere and accept responsibility.
Tan drew from his own entrepreneurial journey, saying he had founded Healthway Medical Group along with a few other doctors at 27, with no formal business training, and had to learn the ropes on the job. The company managed to find a niche by providing corporate healthcare services in HDB and industrial estates, and got a breakthrough when MNCs in Singapore became its earliest clients.
Meeting the demanding standards of these established global companies allowed his company to build a track record and win the confidence of subsequent customers, he said. Rather than crowding his firm out, Tan said the MNCs actually enabled it to grow.
Drawing from his experience, he said he learnt that the Government must build the runway, but entrepreneurs and workers have to run on it and take off. The Government can maintain sound institutions, open markets, clear rules, and also reduce avoidable friction, and share selected risks where there is a wider economic benefit.
But it cannot find the customers, build the business team, make commercial decisions, or persevere on the entrepreneur's behalf. 'Government support should be a springboard for enterprise. It cannot become the business model,' he said.
Tan outlined how government policies can help bridge five gaps that entrepreneurs and companies face: from aspiration to a first venture, research to innovation and enterprise, product to first customer, early traction to sustained scale, and a strong base to global scale.
For instance, programmes like Startup SG Founder, which provides start-up capital, mentorship and networking opportunities, provide structured early-stage support so serious ideas have a fair chance to be tested. There are also programmes like the Partnerships for Capability Transformation scheme, which facilitates partnerships between local firms and MNCs, so that SMEs can participate in MNC supply chains.
When companies are ready to scale up, there is also the Scale-Up programme – designed to groom fast-growing local companies into global champions – which helps firms build capabilities. The 80 companies in the programme's first seven cohorts generated a combined $2.5 billion in additional revenue within three years, and $1 billion came from overseas expansion.
Key points
- Singapore's economic strategy has delivered good jobs, rising incomes and social mobility over successive generations.
- The Government's responsibility now is to ensure that this model continues to deliver in a very different world.
- The Government will play its part by maintaining a trusted, open economy, investing for the long term, addressing gaps in capability, financing and market access, and helping workers prepare for change.
- Entrepreneurs and workers must also play their part by building, competing, persevering and accepting responsibility.
- Government support should be a springboard for enterprise, not the business model.
If the Government's economic strategy continues to deliver, Singapore's economy could see sustained growth, with more jobs and higher incomes for its people. The country's entrepreneurs and workers could also benefit from government support and training programmes, enabling them to build successful businesses and careers.
If the Government's economic strategy fails to adapt to the changing world, Singapore's economy could face significant challenges, including job losses and reduced incomes for its people. The country's entrepreneurs and workers could also struggle to build successful businesses and careers without adequate support and training.
