Singapore as a global hub must move past 'foreign-local worker balance' debate: Chan Chun Sing

ANY country or city aspiring to be a global hub will have to move past the debate on foreign-local worker balance, and Singapore is no different, said Education Minister Chan Chun Sing.

Thus, the republic has to focus on the "critical task" of building a global innovation and knowledge network.

"We need the best ideas and talent to compete on our side," said Mr Chan, adding that there is also a need to pay close attention to the composition of the society.

Mr Chan, who is also Minister-in-charge of the Public Service, was giving an outline of Singapore's economic choices in a speech to public servants at the Civil Service College's Social-Economic Nexus Speaking Engagement Forum on Monday.

There is a need to adapt to the increasing prevalence of remote working, where talent can work from any place in the world, he added, noting that this presents both new challenges and opportunities.

"We will need to adopt new approaches that allow us to tap on the global talent out there, even if they are not physically in Singapore," said Mr Chan.

Even so, there is a need to take care of Singaporeans, especially those who face pressure in this fast-moving economy, he added.

This means creating a wide range of jobs to ensure multiple pathways for Singaporeans with different aspirations and skills, while also ensuring that they earn a "dignified wage" and that the country's growth is inclusive.

For example, domestically-oriented sectors will need more support to transform for workers to draw higher wages, even as externally-oriented sectors are likely to see wage increases alongside global growth.

Whether Singapore should rebalance the foreign workforce dependency to create demand for local workers at higher wages depends on Singaporeans' perception of the value and status of such jobs, as doing so would create cost pressures on employers and lead to high prices for consumers, he said.

Meanwhile, Singapore's decision to remain open and connected - even as the rest of the world becomes more protectionist - is still a key economic strategy.

"We come alive, survive and thrive on connectivity - without which, we become pedestrian and unexceptional," said Mr Chan, adding that Singapore will create "new dimensions of connectivity".

He noted that Singapore has spent decades building its trade networks through free trade agreements, and its air and sea hubs; but the reduction of transport costs and the rise of the digital economy have since reshaped connectivity.

This means digital connectivity will now be critical, he said, noting that Singapore has been a first mover in signing digital-economy agreements, which have helped to establish common standards for digital trade and cooperation.

At the same time, Singapore is enhancing regulatory connectivity so that standards established in Singapore are recognised overseas, he said.

"These efforts, built upon Singapore's trusted brand of stability and reliability, will position us as a safe harbour for long-term investment," said Mr Chan.

Meanwhile, Singapore must "double-down" on strategic growth opportunities that would make the country harder to displace from the global supply chain, against growing competition in an integrated and globalised economy.

Recognising that Singapore cannot anchor the full production or supply chain here, he said: "The key then is to identify the lynchpin, where the greatest economic value is created, or which is essential to the production or supply processes."

This would involve products that require intensive research and development (R&D), including speciality chemicals, Covid-19 diagnostic kits and the production of new generations of vaccines, he said.