Digital sector to grow economy, add 20,000 jobs: Josephine Teo

Singapore

THE infocomm media (ICM) sector is likely to occupy a bigger share of Singapore's economy in future, Minister for Communications and Information Josephine Teo said on Wednesday.

This comes as some 20,000 digital roles are tipped to be added by the committed investments that the Economic Development Board attracted in 2019 and 2020 - or two-fifths of the job creation from these investments.

Besides the tech sector, positions could open in industries such as financial services, healthcare, chemicals, green technology, and semiconductor and electronics manufacturing, industry watchers told The Business Times. Still, they noted that Singapore must stay open to global talent to fill some of the upcoming jobs.

To be sure, Mrs Teo has disclosed that, in ICM, "the local share of workforce remained steady over the past few years - about three in four".

"As more sectors embark on digitalisation, the economywide demand for digital tech talent is set to increase significantly. The sector's growth also translates into attractive careers for Singaporeans," she said.

All the same, Manpower Minister Tan See Leng told Parliament just on Tuesday that Singapore does not have enough locals to fill available jobs in the digital economy. This tech talent crunch has driven growth in Employment Pass holders, especially tech professionals from India.

"Singapore needs to pull multiple levers, including upskilling our existing talent base and staying open to global talent," said Boston Consulting Group partner and managing director Michael Tan, who leads the South-east Asia public sector practice. "To be a sustainable digital economy, growing the local pipeline is essential."

Mike Wilkshire, managing director at recruitment firm RGF Singapore, told BT that finding senior talent "remains a challenge for the tech sector".

"As the nation looks internally to strengthen local skill sets, overseas talent will likely continue to play a key role in plugging the critical skills gap in the short and near term," he said.

Meanwhile, KPMG Singapore partner Guillaume Sachet noted: "A talent strategy cannot stand in isolation. It comes along with the country's economic investments and the big brands that are anchored here . . . In the short and long term, these investments are good signs for Singapore's economy and the creation of jobs as a whole."

Indeed, Mrs Teo said it "does not take a great leap of faith" to expect the ICM sector to grow from its 10 per cent share of the economy.

"The sector will be vital in building up Singapore's digital innovation capabilities, and creating sophisticated digital products and services that have the potential to reach global markets," said the minister.

She added that the sector "will also be a growth multiplier for the broader economy", as digitalisation boosts productivity and competitiveness.

The minister also reiterated several key strategies to support industry in building a digital economy.

These include enhancing enterprises' digital capabilities - such as by grooming high-performing firms as "digital leaders" - and inking digital economy agreements to enhance connectivity with partners abroad.

"We will redouble efforts to help more Singaporeans be active participants in our digital workforce," Mrs Teo added, while also pledging to keep Singapore's digital infrastructure "secure and trusted".

Mrs Teo was speaking at the launch of Singtel-owned technology provider NCS' new brand identity, in her first public speech since switching portfolios in May's Cabinet reshuffle.

By reinventing themselves, technology providers like NCS are better equipped to seize new enterprise information technology opportunities, and support the digitalisation of local enterprises, she noted.

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