Companies at the frontline of economic changes: Heng

Singapore

COMPANIES are at the "frontline" of economic changes, and newly appointed Finance Minister Heng Swee Keat said that he will work closely with them to help draft future plans for Singapore's economy, just as the country is facing more domestic and global challenges.

It was all systems go on Mr Heng's second day as Finance Minister, as he started yesterday by visiting start-ups located at JTC LaunchPad @ one-north and took part in a roundtable discussion with representatives from the community.

In addition to his new Cabinet appointment, Mr Heng will be chairing the "Future Economy" committee that will lay plans for the future development for Singapore's economy. When asked after yesterday's visit what will guide his approach in chairing this committee, Mr Heng said that adopting the perspectives of companies, employees and potential entrepreneurs is crucial in seeing what policies are necessary to help them grow.

"Let's start with where the action is, and where the action is at the frontline," said Mr Heng, in his first words to the media in his new designation.

Mr Heng did not give firm details on the committee's plans or structure, but said that the current policies on skills and productivity are the right way forward. The committee then has to understand how these policies are working, and where necessary, keep these processes on track. Mr Heng also said he will "take some time" to get the right mix of committee members.

Even then, Mr Heng said that the committee's primary task would be to lay the foundation for a vibrant economy in Singapore in the face of domestic challenges and a global slowdown. A vibrant economy will in turn help companies grow.

Domestically, the committee will have to look at how slower manpower growth, an aging population, and the rising aspirations of young Singaporeans will determine the kind of jobs that Singapore hopes to create in the future.

Externally, a deep understanding of how global and regional challenges, including the debt crisis in Europe and structural adjustments in China, is important for the committee before it can start making recommendations.

Said Mr Heng: "We have a small market in Singapore. For our companies to grow, they have to grow internationally. So that is an aspect of our economic structure that we have to consider all the time."