Post-pandemic, Singapore must work to keep hub status and its edge in sectors such as aerospace: Lawrence Wong

EVEN as he rounded up a debate on additional near-term Covid-19 support, Finance Minister Lawrence Wong looked to the future, noting opportunities in areas such as aerospace and sustainability.

"As we transition to this new normal, we must go beyond support measures towards building strength and resilience for the future," he said in his round-up speech in the debate on the supplementary supply bill.

The aerospace industry, for instance, has been badly hit by the pandemic but will eventually recover - though its future may be very different, he said. He noted a shift towards sustainable aviation fuels, the possible emergence of hydrogen-powered aircraft, and the rise of digital services which leverage aircraft data, such as fuel optimisation and aircraft health monitoring.

Singapore starts from a position of strength, with an established base of engine maintenance, repair and operations (MRO) activities, he noted. "But we cannot assume that this lead is going to be with us forever."

Singapore must actively pursue opportunities to anchor global centres of excellence here, to remain a global node for aerospace MRO and manufacturing activities. It must also help local firms to grow and build capabilities to partner the multinationals.

Similarly, Singapore must tackle trends that threaten to erode its value proposition as a hub, such as the reduced importance of geographical location due to remote working, and the proposed global minimum effective tax rate which will blunt tax incentives for major investments to be sited here.

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"We must continue to stay open, and double down on our connectivity as a trusted hub for commerce, trade and talent," said Mr Wong.

Over time, the focus of support will thus shift from "pain relief" to helping companies innovate and transform.

Besides strengthening the economy, Singapore will strengthen its society, and "do more to address the stresses and strains brought about by Covid-19", said Mr Wong. The government will continue to review social safety nets and paying attention to groups that have been set back during this pandemic.

Finally, Singapore "will put sustainability at the heart of our recovery", he said, recapping some of the country's climate plans and highlighting opportunities in areas such as energy solutions and green financing.