Success for next 50 years? Yes, S'pore can: Lim Hng Kiang

But it must live within its means and not take achievements for granted
By Charissa Yong, The Straits Times, 2 Feb 2015

SINGAPORE can remain successful for the next 50 years, but only if it does not take its achievements for granted, said Minister for Trade and Industry Lim Hng Kiang yesterday.

He said the Republic should learn from the lessons of Greece - a high-income country like Singapore, but one that has struggled with high unemployment and large debts since the 2008 financial crisis.

To avoid going down the same road, Singapore must live within its means, generate good jobs and build on the strong relationship between the Government, unions and employers, he said at a dialogue with 280 residents of Braddell Heights during a ministerial visit to the ward.

"It's not very easy to become a high-income country. It's also not very easy to stay there," he said.

Overspending is one way to get into trouble, Mr Lim noted. The Greeks, for instance, "did not collect enough tax, they spent very generously on welfare, and now they have great difficulty readjusting themselves".

In contrast, Singapore's frugal pioneers had built up a sizeable nest egg for the nation, he said.

Now Singapore can afford to invest in more social programmes, such as MediShield Life and the Central Provident Fund scheme.

But ramping up these programmes makes it even more important that Singapore continues to keep an eye on its Budget, Mr Lim added.

To prevent large-scale unemployment, the Government needs to continue creating suitable jobs for Singaporeans, who are now better-educated than before.

Lastly, Singapore should build on the tripartite relationship between the Government, unions and employers, as it is one of the country's biggest selling points to foreign investors, Mr Lim said.

At the dialogue, St Gabriel's Secondary student Hanafi Zulkafle, 14, asked how the Government plans to deal with an ageing population. One in five people will be aged 65 and above by 2030.

Mr Lim replied that the State has been reinforcing its safety nets for the elderly, improving opportunities for seniors to continue to work, and making sure seniors can comfortably age in place.

Amid Singapore's 50th birthday celebrations this year, residents at the dialogue gave their own suggestions on how Singapore can continue its success over the next half-century.

Nanyang Junior College student Ng Chia Wee, 17, called for schools to encourage more creativity, while his schoolmate Chan Si En, also 17, advocated more tolerance between neighbours.

Earlier in the day, Mr Lim visited several places in Braddell Heights, including the new community hub.

Accompanied by the division's grassroots adviser and Marine Parade GRC MP Seah Kian Peng, he also planted a durian tree and dabbled in some calligraphy.

Post by Ministry of Trade & Industry.

Positive outlook for Singapore in immediate future: Lim Hng Kiang
By Olivia Siong, Channel NewsAsia, 1 Feb 2015

With a strong pipeline of investments, the overall outlook for Singapore looks positive in the immediate future, said Minister for Trade and Industry Lim Hng Kiang.

However, he also cautioned that Singapore faces some challenges in the immediate one to two years - these include an ageing population and the task of matching Singaporeans' aspirations.

Mr Lim was speaking during a visit to the Braddell Heights ward on Sunday (Feb 1) - his first visit in 20 years. During a dialogue with residents of the ward, he was asked for his take on Singapore's future economy and population.

Citing a 2011 World Bank study of 101 middle-income countries, Mr Lim noted that Singapore was one of just 13 countries that managed to move from middle- to high-income, over a period of 50 years.

But he stressed that Singapore still has to be cautious: "What it means for us as we celebrate 50 years is - number one, it is not very easy to become a high income country; and number two, it is also not very easy to stay there.

"There is a lot of competition and if you mismanage like some countries - for example Greece - you can drop very quickly and the drop need not be gradual, it can be a very severe drop over a period of five years. As we look after Singapore and we look to our future, let us be careful and reinforce those things which make us successful. Let us also be careful not to fall down the slippery slope and end up with such problems."

With investments coming into Singapore and local companies investing overseas, Mr Lim said he is confident that the country will be able to maintain steady growth of between two and four per cent. This is because of Singapore's strong pipeline of investments, the Economic Development Board still being able to attract investments to Singapore, and Singapore companies investing overseas - which allow them to generate good jobs with their headquarters in Singapore to look after their overseas subsidiaries.

However, he cautioned that there may be some ups and downs. One challenge is the slowdown in Europe, China and Japan's economic engines.

"We have to find new opportunities for our companies. But overall, we are still optimistic that we can generate the jobs and the big challenge now is how to match Singaporeans with these jobs," said Mr Lim.

"HUMAN RESOURCE IS THE BEST AND ONLY RESOURCE WE HAVE"

Thus the need for Singapore's focus on education and training. "Human resource is the best and only resource that we have. Other resources, like land and energy, will face greater constraints. If you look at what we've achieved in the last 50 years and look ahead to the next 50 years, there's optimism we can do more," said Mr Lim.

He cited how in 1966, only half of Singaporeans continued education past the primary six level. This is reflected in a high percentage of the current workforce having primary and secondary level qualifications.

But Mr Lim noted that this demographic has changed - more than 50 per cent of those who are under 30 and entering the workforce are now graduates. Another 30 per cent are polytechnic graduates, with less than 15 to 20 per cent having primary or secondary school qualifications.

He said that while an increasingly educated workforce is welcomed, this poses challenges as well and the economy has to adapt: "If your restaurants depend currently on the older workers with less education to be serving them - 10 to 15 years from now, these people will not be in the workforce. Your new workforce are polytechnic diploma holders and graduates. Therefore, you have to restructure your service industry to cater for this new profile of workers.

"In MTI and MOM, we are very concerned and we study all these statistics very carefully... The objective given to us is to make sure we are able to restructure the economy, make sure we can generate good jobs that satisfy and meet the aspirations of our new workers."

About 280 people attended the dialogue, which lasted for over an hour. Questions ranged from Singapore's education system, to changing consumer habits and the Central Provident Fund. One participant also asked what the role of SMEs looks like in Singapore's future. Mr Lim said that moving forward, it will be key to have a strong pipeline of startups and SMEs, and to facilitate local SME tie-ups with big companies and foreign SMEs.