Investor confidence will tide Singapore through uncertainty: Chan Chun Sing

MINISTER for Trade and Industry Chan Chun Sing says that investor confidence in Singapore remains strong due to its open economy, infrastructure and stability, and this will enable the country to tide through uncertain times.

In his national broadcast on Sunday, he said that is why in the first four months of this year, the Economic Development Board captured S$13 billion of investment commitments from companies such as ExxonMobil, Micron, and ST Microelectronics; while some companies such as Innosparks, Secretlab, and Shopee continued to hire and grow their businesses.

Speaking at the PSA terminal, which he described as "the heart of our trade connections to the world", he said that even though the outlook for the next few years is uncertain - with many Singaporeans having lost their jobs, and more job losses expected in the coming months while others have had pay cuts - investors remain confident to base their new projects in Singapore. 

For example, Hyundai will be setting up its Mobility Global Innovation Centre, a next-generation innovation and manufacturing platform to make electric vehicles, in Jurong. 

He added that local companies, too, are actively transforming their businesses and upskilling their workforce. 

Investor confidence is strong because of the intangible strengths that Singapore has built up over the years, he said. Investors have chosen to site and expand their businesses here because of the city-state's connectedness with the world, as well as its stable society and skilled workforce.

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As Covid-19 has caused many countries to retreat from globalisation and erect more protectionist barriers, Singapore must resist these pressures, he said. "A less connected world means a poorer world and fewer opportunities for all. A less connected Singapore means fewer and poorer quality jobs for us.

"Even in a more protectionist, less connected world, we can still make a living and more.  We can build capabilities to play critical roles in global supply chains to produce high quality products and services that others value."

He said that Singapore currently makes four of the world's top 10 drugs, and is the world's seventh largest exporter of chemicals. Its resilience comes from its networks and diversification of supply sources and markets. 

For instance, when Covid-19 first disrupted supply chains, the networks of public and private sectors here enabled the country to open new supply lines to bring back essentials such as masks, personal protective equipment and test reagents from across the world.

He said that Singapore also enjoys trust from the global community, because throughout the crisis, it did not impose export restrictions or nationalise foreign investments. Instead, it kept its production lines open for global supply chains, including critical materials for surgical masks. It worked with companies to increase their production to meet Singapore's and the world's needs, and facilitated the continued flow of essential goods and people through its ports and airports.

Trust will count for more in uncertain times, he added. "Businesses have noticed. When they make their next investments to diversify their global production bases, we will be in the running. Just as how we did not restrict exports during the 1970s oil crisis, that enhanced our credibility later to establish Jurong Island as a global petrochemical hub."

In promoting free trade, Singapore's initial partnerships with Brunei, Chile and New Zealand have grown to become today's Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Together with New Zealand, Singapore also decided to resist export restrictions and uphold global supply chains, and nine other countries have joined the bandwagon over time.

Mr Chan also said that the government is also building a network of digital economy partnerships that will help local firms grow their overseas markets. Coupled with the anticipated signing of the Regional Comprehensive Economic Partnership agreement this year, this is expected to lower the cost of imports for consumers and exports for producers, and make Singapore a more attractive base for investments.

At the same time, Singapore will also focus on building the next generation of infrastructure to reinforce its position as a choice hub for business, finance, trade and data flows. Long-term plans for projects such as Changi T5, Tuas Mega Port, and submarine cable hubs remain. Likewise, regional developments such as Punggol Digital District, Jurong Lake District, Sungei Kadut Eco-District, Greater Souther Waterfront are still proceeding, although timelines will be paced according to demand. 

On the jobs front, Singapore will create 100,000 jobs and training opportunities in the coming year - thrice of its usual annual number - in sectors such as health care, early childhood education, transport, information and communications technology and financial services. It will also increase the capacity of its training institutions to equip more workers, especially mid-career ones, with new skills required for the new economy. 

The government is also building a thousand-strong Digital Ambassador Corps to help small and micro enterprises apply digitalisation. It will also help them access new markets to build partnerships in the real world with the help of other Singapore businesses that have successfully established regional and global presence in the past years. 

Mr Chan also cautioned against talk that the best way to save jobs is to resume economic activities more quickly, saying that opening up hastily and closing businesses again if infections spike once more will be more disruptive to businesses and workers. It is better to resume safely and progressively.

On Sunday, the Health Ministry reported 407 new Covid-19 cases, taking the country's total number of infections to 40,604. The new cases include nine in the community - four are Singaporeans, one is a work pass holder and four are work permit holders. The remaining cases are work permit holders living in dormitories.