Investors still interested despite Covid-19; Singapore cannot afford to turn inwards: PM Lee

EVEN in this depressed economic climate, where some companies are consolidating and laying off workers, many investment projects want to come to Singapore, said Prime Minister Lee Hsien Loong in Parliament on Wednesday, adding that the Economic Development Board's (EDB) pipeline is in fact higher this year compared with last year.

These include a pharmaceutical company that is planning to build a facility in Singapore to manufacture vaccines, and a company that specialises in pandemic risk insurance.

This is in addition to Hyundai Motor's plans to set up a major facility here to undertake R&D (research and development) and develop future mobility technologies, said Mr Lee. Hyundai Motor said earlier this year that it is setting up an innovation centre to develop and test technology across the automotive supply chain, including the trial of the manufacturing process for electric vehicles.

There is a reason that many investment projects want to come to Singapore, said Mr Lee.

"All over Asia and in the world, societies are under stress, and politics is in flux... We take no joy in the troubles around the world, but it is a fact that in a troubled world, Singapore is one of the few trusted countries that stand out and we must guard that reputation zealously."

Mr Lee also noted that several Fortune 500 companies are considering moving their regional HQs (headquarters) to Singapore because of political uncertainties, while major financial institutions want to grow their operations in Singapore.

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But for them to come here, they must feel welcome and be allowed to bring in the talent they need, he said.

This is because Singapore does not have the full complement of expertise for all these types of work and because regional and global HQs, by design, need to draw talent from around the world and be run by international teams.

"Once these companies establish themselves here, more Singaporeans will be able to take advantage of the opportunities they create, pick up the skills and knowledge and rise up the ranks," he said.

Mr Lee further noted that it is not only global companies here that need foreign manpower.

Local companies also need global talent to grow and develop.

"Our SMEs (small and medium-sized enterprises) need skills, knowledge and expertise that they may not have in Singapore, for example to develop an external wing, and to move up the value chain. And by doing so, they too create good new jobs for Singaporeans besides promoting entrepreneurship and making it easier and more attractive to start companies in Singapore."

"The economic benefits of our foreign worker policies are very clear," said Mr Lee.

"We have always been a people open to the world, welcoming others who can add value to our society, and bring out the best in us. This is our history and our ethos, from our beginnings as an open port and immigrant nation," he said.

"We may be under stress now, but we cannot afford to turn inwards. We will adjust our policies to safeguard Singaporean jobs, but let us show confidence that Singaporeans can hold our own in the world."