Singapore must position for success within new global supply chains: Chan Chun Sing

AS Covid-19 accelerates shifts in global supply chains, Singapore must aim to be at the critical nodes when attracting investments, said Minister for Trade and Industry Chan Chun Sing at The EDB Society's 30th anniversary commemoration on Wednesday night.

Even amid the pandemic, the Singapore Economic Development Board (EDB) managed to secure S$13 billion of fixed asset investment commitments in the first four months of 2020, said Mr Chan.

The shift in global supply chains was one of three future-shaping factors that Mr Chan highlighted, alongside inequalities in growth, and threats to global cooperation.

First, even before Covid-19, technological change and geopolitical tensions were reshaping supply chains. The progress of development in different economies will also continue to change global production, supply chains and consumption patterns.

Singapore must carefully examine the new emerging global value chains to understand where it stands in relation to other countries, said Mr Chan. "We will need more in-depth analysis on where to position ourselves - especially in emerging sectors ranging from fintech, agri-tech, to others."

Second, a consequence of these global shifts is the greater dispersion of growth, said Mr Chan. Countries, companies and workers that can ride these shifts will pull ahead.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

After large pandemic-related outlays, many governments face a narrowed fiscal space, curbing their ability to address domestic inequality. If segments of the population do not reap benefits from globalisation and trade, resistance to these beneficial forces may grow.

In the face of this trend, Singapore must stay committed to connectivity; deepen regional integration and global interdependence; ensure the fruits of trade are distributed; and help firms and workers adjust.

Finally, as such pressures threaten global leadership and governance systems, Singapore and like-minded partners must work to preserve them.

"Given the severe consequences of a retreat from multilateralism, Singapore cannot afford to be a passive participant. We must work with like-minded partners to stand as an integrative force, deepening country-to-country linkages, and set high-standard global rules with partners to enable businesses to thrive."

Two critical tasks lie ahead, Mr Chan concluded: rallying the country to avoid complacency, and tackling wage disparity by equipping workers with skills of the future.

Wednesday's hybrid event saw nearly 300 participants, both in person at The Capitol Kempinski Hotel and online, with Mr Chan's speech being followed by a closed-door dialogue.

Mr Chan also presented The Distinguished Fellow of The EDB Society Award to two former EDB chairmen, Teo Ming Kian and Lim Siong Guan.