Singapore policies 'evolve to cope with ageing, growth': President Tony Tan at St Gallen Symposium Circle of Benefactors Dinner 2014

President shares ways of dealing with change at Swiss dinner
By Yasmine Yahya, In Switzerland, The Straits Times, 9 May 2014

THE way Singapore deals with the complex challenges of an ageing population, rising living costs and upgrading workplace skills formed the centrepiece of a keynote address by President Tony Tan Keng Yam at a dinner in Switzerland on Wednesday night.

Dr Tan told an audience of global intellectuals and executives from firms such as Xerox, UBS, BMW and Microsoft that policies developed in Singapore over 50 years or so are enabling the country to deal with rapid changes.

He noted that globalisation and technology have reduced prices, widened choices and increased consumption, but they have, in turn, driven wages down in many countries and displaced workers whose jobs have disappeared.

Governments now must ensure that workforces have skills that match business needs, but "this is increasingly difficult because globalisation and technological advancements have substantially shortened the life span of skills and increased the rates of skills obsolescence", he said.

Dr Tan was addressing a dinner for the Circle of Benefactors, which finances and participates in the three-day St Gallen Symposium, held in the town of the same name an hour's drive outside Zurich.

Dr Tan told the gathering of about 200 people at St Gallen University: "We are at a major inflexion point that requires substantial resources to not only prepare the younger generations for the future but also to upgrade existing workforces."

At the same time, safety nets must be in place for workers who may be structurally dislocated, while incentives are needed to encourage them to keep learning.

Dr Tan outlined how Singapore helps workers meet many of the challenges of this increasingly competitive environment.

He cited the heavily subsidised programmes designed to upgrade workers' skills, while the Workfare Income Supplement boosts pay and the Central Provident Fund system targets retirement.

"Singapore has evolved its policies over the past 50 years based on a strong social compact that allowed trade-offs to be made between different stakeholder groups for the country to progress, and this will continue to be critical to Singapore's ability to ensure that growth continues to be inclusive and beneficial to current and future generations."

The chairman of the St Gallen Foundation, Mr Peter Voser, said Switzerland could take a leaf out of Singapore's book as it is dealing with similar issues too.

"I think Switzerland can learn a lot (from Singapore) on how to bridge from the young to the old and from the old to the young," Mr Voser told the media on the sidelines of the dinner.

"We could also learn about how to take the burden away from families who have to look after children and elderly people as health costs are going up."

A separate conference on Monday heard about Singapore's strategies for attracting and retaining talent in the civil service, said Dr Gillian Koh, a senior research fellow from the Lee Kuan Yew School of Public Policy.

Singapore, Switzerland reinforce ties with joint declaration
By Yasmine Yahya, The Straits Times, 9 May 2014

SINGAPORE and Switzerland have cemented their already friendly ties by signing a "joint declaration of enhanced partnership".

This is an expression of the desire of both countries to strengthen bilateral relations in areas of mutual interest.

The declaration also acknowledges a commitment by both sides to seek opportunities for further dialogue through high-level meetings at regular intervals.

Switzerland is an important economic partner of Singapore's, as well as a source of high value-added investments.

Total foreign direct investment stock from Switzerland is estimated at $31.5 billion as at end-2012, making the country Singapore's seventh largest investor. Switzerland was also Singapore's 23rd largest trading partner last year, with trade totalling $7.3 billion.

Bilateral trade has almost doubled since 2003, when the Republic signed a free trade agreement with the European Free Trade Area, of which Switzerland is a member.

President Tony Tan Keng Yam and Swiss President Didier Burkhalter witnessed the signing of the declaration by the head of the Asia and Pacific division at the Swiss Federal Department of Foreign Affairs, Mr Beat Nobs, and Singapore's Ministry of Foreign Affairs deputy secretary Simon Wong.

Lessons from Portugal and Switzerland for Singapore
By Yasmine Yahya In Switzerland, The Sunday Times, 11 May 2014

Singapore deals with many challenges similar to those faced by other small countries such as Portugal and Switzerland, and it is important that it strives, like these two countries, to remain globally competitive.

To do this, Singapore's workforce must be well-trained, innovative and flexible, and it must improve its productivity as both the Swiss and Portuguese have done, President Tony Tan Keng Yam said yesterday.

He shared these views during a media briefing capping off his week long visit to the two European countries. He spent two days in Lisbon before flying to Switzerland.

"Singapore, Switzerland and Portugal have different economic circumstances and are in different regions, but all three... are relatively small with fairly limited natural resources," he said. "In a sense we have all adopted the same economic philosophy, to be open and globally competitive."

Dr Tan reiterated his praise for Portugal's "great success" in turning its economy around and exiting a financial bailout programme after three years of recession.

"The fact that they've now put their house in order, reduced the budget deficit and introduced labour flexibility has made their economy more productive and competitive, and I think that's something that deserves commendation," he said.

"They've taken a long-term view. They introduced measures which they knew were politically unpopular but good for the country and people in the long run."

And while there may not have been much interest in Portugal from Singapore's business community in recent years, Dr Tan said he hopes this will change as the recovery of the Portuguese economy signals "a new start".

The expansion of the Panama Canal will open up new opportunities and Singapore firms could partner Portuguese counterparts to expand not just into Europe but also into Portuguese-speaking African nations such as Angola and Mozambique, he added.

Switzerland, meanwhile, offers lessons to Singapore on the importance of a well-trained and productive workforce and a strong competence in technology and high value-added activities, Dr Tan said.

"Our workforce must build up capabilities, we must continue to emphasise research and development, upgrade our education and continuously improve our productivity. Switzerland shows it can be done."

After visits to two technological institutes and the Nestle Research Centre, he said he was impressed by how the research carried out in these organisations is not only for academic purposes but is also meant to be commercialised and benefit consumers.

"Our universities and companies would do well to learn from them," he said, adding that he hopes more Singapore firms will work with Swiss companies.

"We have a lot to gain from deepening cooperation with Switzerland so I hope my visit enhances this relationship."

Dr Tan also noted that despite being a strong economy with an enviable competence in almost any industry they undertake, the Swiss face challenges too.

A recent referendum, for example, showed that the Swiss public is uncomfortable with mass immigration.

"So they have to work out a level of immigration that Swiss people are comfortable with without damaging their economy. Knowing the Swiss, I think they will do this in an orderly, thoughtful way and they will come up with the right balance."

The last stops on Dr Tan's tour of Switzerland last Friday were the Nestle Research Centre and the Olympic Museum, both in Lausanne. Nestle has run a research centre in Singapore since 1982 and some of the findings from research done in Singapore for products such as Milo have been implemented worldwide.

At Nestle, he took a look at the centre's efforts to better understand food and nutrition, and how advances in their research can be used to make healthier food for everyone, from infants to senior citizens.

At the Olympic Museum, he met International Olympic Committee's president, Dr Thomas Bach, and chairman of the committee's finance commission, Mr Ng Ser Miang.

Dr Tan flew home yesterday and arrives today.