'Wrong signals' on openness could hurt Singapore

Singapore

SINGAPORE must be mindful not to send the wrong signals to the world and jeopardise its hard-won reputation for openness, Trade and Industry Minister Chan Chun Sing warned in a parliament speech on Tuesday.

Singapore's ecosystem of global and local companies attracts even more firms to come here and tap this network, in a virtuous cycle, he said during the debate on his ministry's spending plans for the new financial year.

"If we do the wrong things and damage this reputation and ecosystem, we can quickly lose it all," he added.

Such "wrong things" include inconsistent policies on business, taxation, manpower and talent, and "sending the world the wrong signals that detract from our intent to enable our companies to form globally competitive teams to compete with the world".

In a separate speech, Minister of State for Trade and Industry Alvin Tan similarly stressed the importance of staying open for the vibrant tech sector.

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Singapore is growing the local tech talent pipeline, with local institutes of higher learning adding about 20,000 individuals over the next three years, and another 6,250 from Workforce Singapore's and the Infocomm Media Development Authority's place-and-train programmes.

But besides this, Singapore must "attract global talent to complement our local workforce and fill our skill shortages".

One way to do this is the Tech.Pass scheme, under which high-achieving, top-tier global talent can enter Singapore as either a founder, employee, consultant or academic.

Replying to MP Foo Mee Har (West Coast GRC), Mr Tan said there has been "keen interest" since applications opened in mid-January. So far, 22 applications have been approved.

Mr Chan said Singapore's openness and connectivity is a strength, as the world seeks greater resilience and diversity in supply chains. He laid out what Singapore must do, amid global risks and challenges. It must be a safe harbour for capital, talent and ideas, and serve as a connected, trusted and resilient node.

The country must embrace new technologies to be the disruptor, rather than disrupted; use digitalisation to transcend the constraints of size and location; and pivot faster and more nimbly than competitors.

Mr Chan reiterated three economic strategies - strengthening Singapore's position as a global hub, entrenching itself as a critical node in global value chains, and building capabilities in firms and workers.

First, despite digitalisation, the world will still need high-quality, trusted business hubs for high-value transactions and collaborations that require physical interactions, he said.

Singapore can distinguish itself via legal and policy frameworks; progressive rules allowing new business models to thrive; superior networks; a mix of local and global talent; and being a critical part of research and development value chains.

Second, besides emerging sectors, Singapore must entrench itself in critical niches in global value chains, and can no longer "merely be a place of arbitrage", he said. It must add value, whether through complementary services such as financing, or through verification and traceability.

Third, firms and workers must continue to develop capabilities, and Singapore must still attract global firms even as it nurtures local ones to become future global champions.