Singapore must not send 'wrong signals' to world about openness: Chan Chun Sing

SINGAPORE must be mindful not to send the wrong signals to the world and jeopardise its hard-won reputation for openness, Minister for Trade and Industry Chan Chun Sing warned during his ministry's Committee of Supply debate on Tuesday.

Singapore has a "deep and wide collection of global and local companies", forming an ecosystem that attracts even more companies to come here and take advantage of this superior network, he said.

"This is a virtuous cycle that was hard-fought, and hard-won. We must not lose this. If we do the wrong things and damage this reputation and ecosystem, we can quickly lose it all."

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", he added.

Singapore's openness and connectivity is a strength, particularly as the world seeks greater resilience and diversity in supply chains, said Mr Chan.

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 geographical location; and be able to 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 through its 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 providing 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.

"How we make a living will change even faster in the days ahead," said Mr Chan, adding that the focus should be on these new forms of competition. "Let us not focus on the wrong issues, or try to resist inevitable change, or try to protect what will be made irrelevant and displaced in time to come."