Emerging Stronger Taskforce proposes how Singapore can emerge stronger in a post-COVID-19 world

It seeks to break new ground in digital space, collaborate closely with businesses, people

By Grace Ho, Senior Political Correspondent, The Straits Times, 18 May 2021

A post-Covid-19 Singapore is one that breaks new ground in the digital space to offer unlimited opportunities for its businesses and people, and collaborates closely with them to be sustainable and stronger together.

This is the vision put forward by the Emerging Stronger Taskforce (EST), a year after it was launched last May to chart Singapore's post-pandemic economy.

In a 118-page report released yesterday, it makes five recommendations to drive the Republic's transformation as a node for technology, innovation and enterprise.

They are: Creating new virtual frontiers; seizing growth opportunities from sustainability; enabling global champions and growing an agile and strong Singapore core; institutionalising private-public partnerships through Alliances for Action (AfAs); and strengthening international partnerships, especially in South-east Asia.

Speaking at a media conference yesterday, National Development Minister Desmond Lee, who co-chairs the task force with PSA International group chief executive Tan Chong Meng, said the ongoing crisis reinforces the importance of working closely together. "The crisis (is) affecting countries that initially overcame infections but are now facing a new wave," he said, adding that the technology and capabilities which Singapore now has to overcome Covid-19 challenges would not have existed 10 years ago.

"And so that drive and initiative, that will to survive, to find opportunities - that remains absolutely relevant."

Deputy Prime Minister and Coordinating Minister for Economic Policies Heng Swee Keat, who chairs the Future Economy Council (FEC), said Covid-19 has created the "burning platform" for change.

The EST's recommendations were made in the collaborative spirit of the Singapore Together movement launched two years ago, where Singaporeans partner with the Government to shape their shared future, he said.

The 23-member task force was set up under the FEC to give recommendations on how Singapore could refresh its economic strategies.

The recommendations come amid shifts such as growing geopolitical tensions and accelerating digital transformation.

It acknowledged the need to do things differently from previous review committees on the economy, and "pivot towards action". This meant identifying areas of opportunity for Singapore to invest in, and test-bedding new, creative ideas.

Views were sought from about 2,000 individuals across 900 organisations.

The nine AfAs, which involve businesses, unions, government agencies and other experts, and cover areas ranging from supply chain digitalisation to sustainability, helped explore some of the ideas. They also quickly prototyped and executed minimum viable products or pilots which can be scaled up if successful. The task force has recommended that this approach be institutionalised under the FEC.

Mr Lee said: "The AfA approach is valuable in tackling challenges across not just the economic realm, but also in the social space... This collaborative approach also makes for more sustainable and more impactful actions and outcomes."

Mr Heng said the FEC will incorporate the EST recommendations into its current update of the Industry Transformation Maps, or ITM 2025.

It will scale up the AfAs as a more agile and nimble way to undertake industry transformation.

Emerging Stronger Taskforce: Singapore's new collaborative approach to reignite economic growth in a post-Covid-19 world

7 Singapore Together Alliances for Action (AfA) are working with the Government to act on key growth opportunities

Private, public sectors to work as partners to propel economy; medtech a new area of focus

By Tham Yuen-C, Senior Political Correspondent, The Straits Times, 20 Nov 2020

As Singapore resets its economy to navigate a post-pandemic world, it has decided to take a fresh approach to growth and initiated several projects that could hold the key to the future.

These range from the safe and gradual resumption of large-scale conferences to a trial of autonomous shuttles, revealed the Emerging Stronger Taskforce (EST), six months after it started exploring new ideas to reignite the economy.

The EST is also adding a new area of focus, medical technology, which will look into developing diagnostics for diseases like Covid-19 and cancer. It is also looking at tie-ups with South-east Asian partners.

Giving an update on the work of the task force yesterday, Deputy Prime Minister Heng Swee Keat noted that it has taken a new approach to collaboration under which industry-led groups dubbed Singapore Together Alliances for Action are given leeway - much like start-ups - to prototype new ideas.

"This is in keeping with the spirit of Singapore Together, where we work in partnership to achieve more than the sum of our parts," said Mr Heng, referring to the movement he and his fourth-generation colleagues started to give citizens more say in policymaking.

"This new approach to economic growth will propel our economy through Covid into a new normal post-pandemic," he added.

Members of the task force said at a press conference that this has allowed the private and public sectors to work alongside each other as partners - rather than as regulators and the regulated.

PSA International group chief executive officer Tan Chong Meng, an EST co-chair, described it as "crossing the stream while feeling the stones", rather than feeling all the stones and mapping out the way before crossing the stream.

This has borne fruit. A project by the meetings, incentive travel, conventions and exhibitions alliance, to pilot rapid testing at mass events, saw all visitors to last month's Singapore International Energy Week tested on the spot before being allowed into the venue.

The alliance on robotics has initiated a project which will see early versions of autonomous vehicles deployed by the end of the year.

And the alliance on supply chains has brought together 50 organisations to create a set of data standards that will allow different segments of the supply chain ecosystem to work together.

The other four alliances are looking at sustainability, digitalising the built environment, smart commerce and education technology.

In all, the seven alliances have collectively engaged over 600 people and over 330 businesses, trade associations and chambers, and public agencies, among others.

Minister for National Development Desmond Lee, the other EST co-chair, said this agile approach to collaboration can be a competitive advantage for Singapore and may soon become the norm.

He added that it is key to be nimble as the task force has identified six shifts in the global economy from which opportunities will emerge: A changing global order; a rebalance between efficiency and resilience in supply chains and production; digital transformation and innovation; changes in consumer preferences; greater focus on sustainability; and accelerating industry consolidation and churn.

In navigating these shifts, the task force is guided by two themes, Mr Lee said, that must underpin the future economy: A Singapore that is connected to the world, and one that is sustainable for the environment and inclusive for its people.

He called on people to share their ideas through the EST's new website emergingstronger.sg, saying: "The EST needs both the support and the ideas and creativity of Singaporeans to build a Singapore that enables virtually unlimited possibilities."

Singapore to invest $700 million in food, medicine and digital tech research for long-term competitiveness

By Linette Lai, Political Correspondent, The Straits Times, 28 Mar 2019

The future of food, medicine and digital technology will form the backbone of long-term research plans to keep Singapore competitive, Finance Minister Heng Swee Keat said yesterday.

But these goals will not be at the expense of basic research, which takes longer to bear fruit, he said as he gave an update on Singapore's research progress and future plans.

Mr Heng, who chairs the National Research Foundation, announced that over $700 million will go into the three areas.

He was speaking to reporters after the Research, Innovation and Enterprise (RIE) Council meeting, together with Prime Minister Lee Hsien Loong, who chairs the council, and fellow council members Chan Chun Sing and Lawrence Wong.

Digital capabilities will get a large chunk: Over $500 million will be set aside to build up artificial intelligence systems and meet national cyber-security needs. The sum will also boost Singapore's supercomputing capabilities and fund the deployment of robots and automation.

Another $80 million will go towards ramping up cell manufacturing capabilities for cell therapy - hailed as the future of medicine.

And $144 million will be invested in food research, including urban farming and lab-grown meat.

The funds are part of $19 billion that was budgeted in 2016, under the RIE2020 plan for Singapore's science and technology research over the next five years. Food, healthcare and the digital economy were earmarked as research targets following a mid-term review of the plan.

PM Lee said success will depend on three factors: Singapore must continue to emphasise science and technology in society, develop a strong core of talent, and build partnerships with foreign countries and institutions to pool expertise and take on more ambitious projects.

"We cannot afford to have people fearful and distrustful of science and held captive by totally groundless anti-scientific beliefs," he said.

Speaking on manufacturing's changed nature, Mr Chan, the Trade and Industry Minister, said: "Our ability to position ourselves carefully in various niche areas across the entire global value chain will be critical to our competitiveness."

Mr Wong, Minister for National Development, said Singapore can develop urban solutions and be, for companies, "a living laboratory to pilot, test-bed and eventually scale up their solutions".

Singapore's 23 key industries to be grouped into 6 clusters as economy begins next phase of transformation: Heng Swee Keat

Six industry clusters to drive economic transformation
Heng outlines plan to position Singapore as key node for technology, innovation and enterprise
By Chia Yan Min, Economics Correspondent, The Straits Times, 19 Apr 2018

The next phase of Singapore's economic transformation will involve deepening linkages between complementary industries by grouping them into clusters, said Finance Minister Heng Swee Keat.

The aim is to position Singapore as a key node for technology, innovation and enterprise in Asia and around the world.

The latest move comes after the Government rolled out 23 sector-specific road maps for transforming key industries, called Industry Transformation Maps (ITMs). A total of 23 road maps covering 80 per cent of the Singapore economy have been launched.

These sectors will now be grouped into six clusters to maximise opportunities for collaboration, Mr Heng said at a media briefing yesterday.

The six clusters - each helmed by a minister and at least one private-sector or union representative - will be unveiling plans in the coming months to promote innovation and encourage partnerships within these sectors.

The clusters are: manufacturing, built environment, trade and connectivity, essential domestic services, modern services and lifestyle.

Such an approach will help bring diverse capabilities together, said Mr Heng. For example, in the lifestyle cluster, there is scope to explore how firms in hotel services and food services can work together to bring major events and conferences to Singapore, as well as improve experiences for tourists.

Citing hawker centres as an example, he added: "In a hawker centre, stalls sell different food and are competing but at the same time they are cooperating - people know that hawker centres will always have a great variety of good food.

"This is what I hope Singapore companies can also do. Everyone is good at something, and together we can build a reputation as the best 'hawker centre' in town."

The aim is to cement the Republic's position as a "global Asia node of technology, innovation and enterprise", said the minister.

This means making innovation pervasive, building deep capabilities in companies and among workers, as well as developing strong partnerships locally and around the world.

Sea, Land Transport and Aerospace Industry Transformation Maps launched; ITMs not static but adaptable, says Iswaran

Road map to boost Singapore's edge in maritime industry
Over 5,000 good jobs to be created by 2025, with sector's value-add expanded by $4.5 billion
By Jacqueline Woo, The Straits Times, 13 Jan 2018

Maintaining Singapore's thriving maritime industry as a world leader is the central theme of an ambitious new blueprint for the sector unveiled yesterday.

It underlined just how vital the industry is for the economy while also laying out the challenges it faces to maintain and strengthen its position amid fierce global competition.

The Sea Transport Industry Transformation Map (ITM), as the strategy is called, noted that Singapore starts from a position of strength.

Container throughput rose 8.9 per cent to 33.7 million containers last year, while the maritime industry as a whole employed more than 170,000 people and contributed 7 per cent to the economy.

"While 2017 was a better year than the last, we watch with cautious optimism, as the road ahead remains challenging. Indeed, we have to continue to paddle hard to stay ahead," said Dr Lam Pin Min, Senior Minister of State for Transport and for Health.

He made it clear that major changes lie ahead, from port workers upgrading skills to management grappling with radical new technology. The sector is in for "real and deep transformation over the next few years", he noted.

"We must fundamentally relook the way we operate... as well as the kind of capabilities our maritime workforce needs," he said.

The ITM has an overarching vision: to make Singapore a global maritime hub for connectivity, innovation and talent. That, in turn, means expanding the sector's value-add by $4.5 billion and creating over 5,000 good jobs by 2025.

Dr Lam said at the ITM launch ceremony at PSA Pasir Panjang Terminal Building 3: "We not only have to continue to deliver world-class port services, we must also capture new growth opportunities."

One key strategy is to build up a well-connected international maritime centre cluster. That will involve the Government continuing to boost the port's physical connectivity by anchoring and attracting shipping lines here.

More initiatives, such as the inaugural Maritime Capital Forum last year, will also be rolled out to develop the maritime financing landscape here.

Another key thrust is to drive growth through better productivity and innovation, particularly by using automation and digitalisation.

The Maritime and Port Authority of Singapore (MPA) is developing technology platforms to facilitate the sharing of vessel and cargo-related information with the wider trading community.

It is also looking at digitalising trade and maritime documentation, like using electronic bills of lading.

The Singapore Maritime Institute will invest $12 million to set up the Centre of Excellence in Modelling and Simulation for Next Generation Ports that will enhance the Singapore port's ability to handle increasingly complex operations.

The Government will do more to bring well-trained personnel into the industry, said Dr Lam, adding that most of the 5,000 new jobs to be created will be professional, manager, executive and technician roles.

Those in more traditional jobs will undergo skills upgrading as jobs evolve with increasing automation and digitalisation.

This year, two maritime SkillsFuture Earn and Learn programmes launched earlier in 2016 will be open to more graduates, enabling junior seafarers to deepen their skills to take on higher-level jobs.

The ITM is the first of eight road maps to be launched this year. A total of 15 ITMs have already been set in motion as part of a $4.5 billion industry transformation package announced in Budget 2016.

Jurong Lake District: From the boondocks to boom town - and beyond

Singapore has thrived by betting big on future trends that make or break economies, whether in air or sea transport, urban development or water sustainability. It is how the Republic rose to become the world's top transshipment hub, a leading air hub and a model liveable city. In the last of a three-part series on major infrastructure projects, Insight looks at plans to transform Jurong into Singapore's second Central Business District.
By Rachel Au-Yong, The Sunday Times, 17 Dec 2017

A decade ago, the idea that the industrial - some might even say boring - town of Jurong would one day be transformed into a vibrant business district with pockets of tranquillity was often met with incredulity by developers and residents alike.

Yet today, long-time Jurong East resident Aimee Saw, 62, can point to an accelerated momentum in the Government's efforts to not just revitalise the area, but also to turn it into Jurong Lake District (JLD), the nation's second Central Business District.

The retired secretary says: "In the 60s and 70s, there wasn't much here besides factories and a few shops.

"But suddenly, in the last 10 years, you have so many new shopping centres and a big hospital, and people say there will be more to come. It's good to know Jurong is not forgotten."

In 2008, the Government unveiled a blueprint to turn JLD - a 360ha area comprising Jurong Lake and the area around Jurong East MRT station, where the Jurong Country Club was - into a lakeside destination for business and leisure over 10 to 15 years.

Almost a decade later, the Urban Redevelopment Authority launched a draft masterplan in August this year, ambitious in its promises to elevate the district to a second CBD, as well as a sought-after living destination.



The goal is to provide more than 100,000 new jobs in sectors such as maritime, infrastructure and technology, as well as a further 20,000 homes.

Given the monumental effort that lies ahead to achieve this, National Development Minister Lawrence Wong has cautioned that JLD will be realised only in 2040 and beyond.

Insight takes a look at the plans.

Construction sector to train 80,000 Singaporeans in new tech under Industry Transformation Map

Jobs in construction sector to go high-tech
BCA plans for 80,000 trained in cutting-edge technology as part of industry transformation
By Ng Jun Sen, The Straits Times, 25 Oct 2017

Instead of sweat, mud and grime, Singaporeans joining the construction industry in the near future may be greeted with digital design and cutting-edge technologies, as the Government embarks on an overhaul of a sector that has long struggled to attract local workers.

"Essentially, we are speaking about transformation of the whole construction sector - the entire process and value chain, from end to end," Second Minister for National Development Desmond Lee said at the opening ceremony of the Singapore Construction Productivity Week yesterday.

The Building and Construction Authority (BCA) is aiming to have 80,000 personnel trained in construction technology - which prioritises productivity and innovation over manual work - enter the industry by 2025. There are currently 32,600 trained in these areas.

The move is part of the newly launched Construction Industry Transformation Map (ITM), which is designed to pave the way for more attractive and highly skilled construction jobs in the sector. The move will also mean holding steady the figure of nearly 300,000 foreign workers the sector now relies on.



BCA chief executive officer Hugh Lim said: "We want to try to maintain the number of foreign workers at the current level, yet be able to cope with an increase in output as more big projects start kicking in."

BCA started to explore the feasibility of using new construction paradigms, such as Design for Manufacturing and Assembly (DfMA), a decade ago in order to boost productivity rates and change the industry into one that resembles a highly productive manufacturing line.

This is achieved through technology such as prefabricated prefinished volumetric construction (PPVC), where large building modules manufactured in factories are assembled in a Lego-like manner.

Built this way, construction sites can see up to 40 per cent in manpower savings, which could mean faster completion times, fewer work incidents and a cleaner site.

The Singapore Labour Force - Getting ahead of the curve

By Devadas Krishnadas and Elena Lopez, Published TODAY, 12 Aug 2017

The “Labour Force in Singapore 2016” report released by the Manpower Research and Statistics Department reinforces the perception that the Singapore labour force is facing long-term pressure to transform its skill base.

JOB MARKET GETTING MORE CHALLENGING

The employment rate for residents has decreased amid anaemic economic growth and a modest increase in supply of foreign workforce. The nominal median monthly income (including employer contributions to the Central Provident Fund) of full-time employed residents is rising at a slower pace while the education profile of the labour force has been improving over the years.

The number of Singapore residents with a degree, diploma or other types of higher education qualification has increased to over half the resident population, higher than the average for Organisation for Economic Cooperation and Development member states and also higher than that in South Korea (45 per cent), and the United States (44 per cent).

The occupational distribution amongst employed residents reflects the continued shift to a services concentrated economy – more than half are Professionals, Managers, Executives and Technicians, with most concentrated in information and communications, professional services and financial and insurance services.

At the same time, training participation rate has edged up, resuming the uptrend after a moderate drop in the previous year. This rate was higher in the services industry than the national average. The resident unemployment rate continued to rise for the fourth consecutive year, reaching 3 per cent in 2016. Unemployment was highest in the information and communications, and accommodation and food services sectors. Worryingly, job seekers are taking longer to find jobs. The proportion of unemployed residents still looking for work after six months rose to 20 per cent in 2016.

Embrace lifelong learning and doing, Heng Swee Keat urges Singaporeans

Heng Swee Keat calls on firms, individuals to adapt fast and build up strong capabilities
By Chia Yan Min, Economics Correspondent, The Straits Times, 3 Aug 2017

Learning before starting work is the norm, but Singaporeans should embrace a new approach of "learning while doing" that allows them to keep up with technology and fast-changing workplaces, Finance Minister Heng Swee Keat said last night.

He noted that the world is being roiled by major structural changes, but Singapore will be well placed to meet the challenges if firms and individuals can adapt quickly enough and build up strong capabilities.

Mr Heng, speaking at the Economic Society of Singapore annual dinner 2017 at Mandarin Orchard hotel, said the global economy is increasingly uncertain and the pace of technological change is picking up.

He highlighted several key trends, including the impact of technology on productivity and jobs, the rise of emerging economies and the growing importance of data.

When the Committee on the Future Economy - a panel co-chaired by Mr Heng and tasked with charting a blueprint for Singapore's future growth - considered these trends last year, "there were some who sought to bet on new growth industries, new technologies and new markets to go into. But in a fast-changing, unpredictable world, there are no shortcuts", he said.

These shifts mean companies, individuals and institutes of higher learning need to change their habits and practices significantly. For workers, this means shifting from "learning, then doing" to "lifelong learning and doing", Mr Heng said.

"Throughout our careers, we learn the skills that we need for our jobs, hone them by using them at work and then, as the economy evolves, learn a new set of skills and in turn put those to use. It is a virtuous cycle of learning and doing."

May Day Rally 2017: Jobs, jobs, jobs

PM Lee: Jobs must be a key focus for Singapore to thrive
Next generation of ministers to work as a team and lead drive to transform economy
By Joanna Seow, The Straits Times, 2 May 2017

Jobs must be a key focus for Singapore to stay relevant and thrive in a more challenging global economy, Prime Minister Lee Hsien Loong said at the May Day Rally.

He outlined three key strategies yesterday: Creating new jobs, finding alternative jobs for displaced workers, and training workers to grow in their jobs to prepare for the future.

Leading the charge to implement plans to ensure key industries can transform and create jobs is the next generation of ministers.

Mr Lee announced that Finance Minister Heng Swee Keat will be chairman of a Future Economy Council. On it are ministers S. Iswaran, Chan Chun Sing, Ong Ye Kung and Lawrence Wong, and a number of younger ministers.

Their task is to implement the recommendations of the Committee on the Future Economy, which in February released its report on how Singapore can prepare for the long term, including through Industry Transformation Maps.

Mr Lee said the council's work will take time, beyond the current Government's term. It is also a chance for younger ministers to work as a team, as their generation will be leading Singapore forward.

He noted that while the mood for Labour Day celebrations was better than last year's, risks remained, like that of a global trade war.

Singapore's unemployment rate may rise further as the country faces pressures similar to those in other developed countries - industries restructuring, the workforce ageing, and older workers who lose jobs taking longer to find new ones.

"We have got to understand this trend but, at the same time, we have to work hard to resist it, to keep our workers in jobs," he said.

The first strategy of creating new jobs entails bringing in new businesses and investments and upgrading existing companies. This has been Singapore's winning formula for 50 years, for without a business-friendly climate, there will be no new jobs, Mr Lee noted.

He cited recent projects like Google's new campus and its work to help train small and medium- sized enterprises to go digital.

Second, workers who lose their jobs, especially professionals, managers, executives and technicians, must be helped to find alternative ones. Various schemes have been expanded to match workers to jobs and help them switch, but workers should be open-minded and flexible, he said. Employers have to be open to hiring mature workers too.

Third, workers must get support to upgrade their skills and knowledge, as fellow workers elsewhere are catching up fast.

What's being done to prepare Singaporeans for jobs of the future

By Joanna Seow, The Straits Times, 27 Mar 2017

Have you ever imagined yourself creating a complex machine part or even a human windpipe on a screen, then seeing it take on physical form right before your eyes?

Or leading a team of tireless workers who need to be reprogrammed once in a while?

These are jobs already being done by 3D designers and robot coordinators. Not many people have the skills to do these jobs yet, because they have not been around for long.

At least not in a big way.

But in the economy of the future, you can expect more jobs like these to be created.

Jobs will change too.

While it is hard to identify the specific skills students and workers need to acquire to keep up with these changes, one skill that will come in handy is the ability to continually learn new things.

As Manpower Minister Lim Swee Say said earlier this month, as businesses transform, more old jobs will be destroyed. But new jobs will be created and existing jobs will be transformed too.

What this means for workers is that instead of staying with a single employer for life, it will be common to move through multiple employers - and take on multiple careers - throughout one's working life.

"Each time we move from one career to another career, we will have to learn new skills and adapt to a new environment to regain our employability, time and time again," Mr Lim said.

Understandably, many workers are worried about adapting to these changes, and concerned about how their livelihoods will be affected.

With robots and advanced computer programs helping do jobs ranging from delivering room service to providing financial advice, workers in some industries are already feeling the heat.

But technology also creates new products, such as 3D printing for companies to make prototypes quickly rather than outsourcing this process, and jobs, such as for rapid prototyping technicians.

Jobs will disappear. But better-quality ones will be created.

For example, in advanced manufacturing, some 23,000 jobs are forecast to be displaced over the next seven years, but more than 22,000 new jobs are expected to be created.

These new jobs will pay on average 50 per cent more than those lost, a recent study by Boston Consulting Group found.

SKILLING UP FOR NEW JOBS

However, these changes wrought by technology and other forces also mean the job market will go through some labour pains.

Layoffs last year rose to the highest level since the global financial crisis in 2009. Unemployment involving Singapore residents also crept up slightly.

Professionals, managers, executives and technicians (PMETs) are hit harder by the churn as it takes longer to train for a different job at these levels.

People who took a break from work, or who struggled to find a new job after being laid off, often have a hard time proving that they have the relevant knowledge and skills for a job.

2017 Budget Statement debate in Parliament

Government studying all options to meet future revenue needs: Heng Swee Keat
Heng Swee Keat urges workers, businesses to embrace a spirit of enterprise and partnership
By Yasmine Yahya, Assistant Business Editor, The Straits Times, 3 Mar 2017

The maturing Singapore economy is entering a phase where its revenues will grow slowly while an ageing population and the demands of infrastructure will heighten the need to spend.

The Government has already started tightening its belt, with budget caps for ministries over the medium term, Finance Minister Heng Swee Keat said as he wrapped up three days of parliamentary debate on Budget 2017. This year, the caps are being adjusted downward by 2 per cent.



As he reiterated the call for Singapore to embrace a spirit of enterprise and partnership in its journey of transformation, Mr Heng also stressed the need for its finances to remain sustainable in the long run.

"Besides spending prudently and effectively, we will have to grow our revenues through new taxes, or raising taxes over time," he said.

He assured members that Singapore's tax system will continue to be fair and sustainable.

It must be progressive across income groups, he said. "What this means is that those who are better off must contribute more."

He stressed that the system must reward efforts by individuals and enterprise by companies to remain sustainable. "We will study all options carefully," said Mr Heng.

Elaborating on Budget 2017, he said it builds on the strategies put forth by the Committee on the Future Economy, which calls for Singaporeans to work together "for economic development, and in all areas", said Mr Heng.

That need for partnership is perhaps most apparent in the Industry Transformation Maps (ITMs), which chart out how companies can work together with agencies, unions, trade associations and others to restructure and transform themselves.

The Government cannot, on its own, design plans for thousands of companies across different industries, but it can catalyse and bring stakeholders together, which is what it seeks to do with ITMs, he added. "The quality of the ITMs will depend on the quality of inputs from industries and partners, and how well we work together for the larger good."

Workers, meanwhile, can do their part by going beyond the familiar, Mr Heng said. Businesses must have the courage to adopt and try new ideas.

On its part, the Government will support the needs of Singapore's people and businesses so that they can achieve their full potential, by creating a regulatory environment that both supports innovation and manages risks.

The spirit of partnership is just as important in securing a better living environment for Singapore, he added.

While the Government has steadily increased its spending on social needs such as healthcare, education and housing over the past decade, from $12.7 billion in 2006 to $34 billion in 2016, people have their part to play too.

"Even the strongest social safety nets are no substitute for the caring hearts and helpful hands of neighbours," Mr Heng said.

Budget 2017, he noted, focuses on efforts to empower the community and forge partnerships.

"This is a movement towards the future, where we nurture a culture of caring for one another, of many helping hands, to meet a significant increase in societal needs."

This is important, he said, as Singapore's ageing population and smaller families will likely lead to higher healthcare spending.

Mr Heng noted that several MPs had raised concerns about how the hike in water prices, the introduction of a carbon tax and the restructuring of diesel taxes will lead to higher costs for households and businesses. "We are taking decisive steps in this area because we want a cleaner and healthier environment for ourselves and our children," he said.

PM Lee Hsien Loong at the Camp Sequoia Dialogue on 24 Feb 2017

Singapore can do much more when it comes to adopting new technology: PM Lee
He says it's an area where Singapore has an edge, outlines vision of how it can improve life here
By Royston Sim, Assistant Political Editor, The Straits Times, 27 Feb 2017

Singaporeans can expect a national digital identity, cashless payments in hawker centres and a transport system that is more responsive to changes in demand in the near future.

Prime Minister Lee Hsien Loong sketched out this vision of how he sees technology playing a greater role in improving life here at a recent closed-door dialogue, of which his office released a transcript yesterday.

And there is a lot more that government, businesses and people can do to seize the opportunities new technology creates, he added.

The need to innovate and build strong digital capabilities is a key strategy of the Committee on the Future Economy (CFE), which released its report this month, and the Budget contained several measures to help on this front.

Ministers will elaborate on these plans when Parliament debates the Budget this week and the next.

Implementation will be key, Mr Lee said. Technology is a key focus because, while there are manpower and space constraints, "in terms of ideas, productivity, breakthroughs, the constraint is only what the human mind can come up with, what people can organise and deliver".

Mr Lee's dialogue last Friday with 150 start-up founders and guests from across the Asia-Pacific region was part of Camp Sequoia, an annual tech summit organised by venture capital firm Sequoia Capital India.

He said technology is an area Singapore has an advantage in, as a compact city with high-quality infrastructure and tech-savvy people.

Its Smart Nation Programme Office was set up to spearhead the use of technology and key projects that "will make a big difference to the way Singapore is able to operate". Mr Lee added: "I think personally that, for all our pushing, we really are not moving as fast as we ought to."

He outlined several other projects under way, including a national sensor network that pulls together pictures from cameras monitoring traffic, drains and housing estates into an integrated data source.

As for a national digital ID system, he cited how Estonia has a digital access card for all secure e-services, including national health insurance, bank accounts, making digital signatures and Internet voting.

"There are a lot of things that we can do individually, as a government, as a nation, and also for companies - to be participating, to come here, set up and use Singapore as a place to start up," he said.

Forging a new consensus for the future economy

Some tough questions need to be grappled with and these concern foreign manpower, population size and pace of growth
By Tan Khee Giap and Gareth Tan Guang Ming, Published The Straits Times, 22 Feb 2017

The Singapore economy seems to have entered a new normal of low and slow growth. There are more out-of-work residents and, last year, those jobless for at least 25 weeks took longer to find work as compared with the previous year. Business sentiment has softened and small and medium-sized enterprises (SMEs) have quite understandably been more adversely affected than multinational corporations (MNCs).

The cause of such a subdued economy is more structural than cyclical in nature as the Government has painstakingly engineered a productivity-driven revamp of the labour market, but old habits die hard and it takes time to change human resource management and work behaviour.

Meanwhile, in the Budget statement on Monday, Finance Minister Heng Swee Keat made clear the Government's intent to lend financial support to seven broad strategies tabled by the Committee for the Future Economy(CFE) to improve the longer-term resilience of Singapore's highly open city-state economy. This is taking place amid a challenging external environment of rising protectionism against global trade, disruptive change due to rapid technological progress, and heightened geopolitical tension.

BUDGET'S THREE PRONGS

This year's Budget can be said to have three prongs: ease companies' and workers' shorter-term pains and hardships, build capacity for the longer term so the economy can adapt and stay competitive, and further commit to keeping society inclusive and caring.

With companies finding it hard to cope with higher business costs due to wages, rentals, government fees and charges, the Budget sought to ease hardship for companies suffering due to a cyclical downturn in their sector by, among other things, deferring foreign- worker levy hikes, enhancing and extending the corporate income tax (CIT) rebate for the years of assessment 2017 and 2018.



The Budget also includes help and incentives to cushion firms, especially SMEs, going through painful sectoral transformation. The schemes include Wage Credit amounting to $600 million, of which 70 per cent will be for SMEs; extension of Special Employment Credit amounting to $300 million that will benefit 370,000 workers, and the continuation of the SME Working Capital Loan scheme for the next two years.

In terms of capacity building and skills upgrading, the Government has committed up to $600 million in capital for a new International Partnership Fund with Global Innovation Alliance for Singaporeans to gain overseas experiences, build networks and collaborate with their counterparts.

Budget 2017: Moving Forward Together

Singapore Budget 2017

A budget for today - and tomorrow
• Water prices to go up 30% • Carbon tax from 2019 • Income tax rebate • Fund to help firms go global
By Yasmine Yahya, Assistant Business Editor, The Straits Times, 21 Feb 2017

Against a backdrop of rapid technological change and global uncertainty, Finance Minister Heng Swee Keat delivered a Budget yesterday that addresses Singaporeans' immediate concerns while laying the groundwork for future growth.

The speech kicked off with MPs thumping their seats in a show of support for Mr Heng, who had made a remarkable recovery to speak in Parliament for the first time since suffering a stroke last May.

The Budget offered several talking points of its own. These included an increase in water prices to fund the higher costs of desalination and Newater production, the first rise in 17 years; this was offset, for some, by a permanent increase in the GST Voucher - Utilities-Save (U-Save) rebate for eligible HDB households, ranging from $40 to $120, depending on flat type.

Young home buyers received cheer in the form of generous hikes of up to $20,000 in the CPF Housing Grant for resale flats from a Budget in which expenditure is expected to touch $75.1 billion.

But underpinning it all is a message Singaporeans should find familiar - the Republic has to adapt and thrive as the world undergoes deep shifts that will create new challenges, but also open up new opportunities. It continues the theme of the report by the Committee on the Future Economy (CFE), co-chaired by Mr Heng, released earlier this month.

"It is critical that we take decisive action to re-position ourselves for the future," Mr Heng told MPs in a packed House, noting that the Budget would take a "learning and adaptive approach", trying new methods, keeping those that worked and learning from experience. "That is the Singapore way."

Mr Heng noted that while the economy grew 2 per cent last year - from 1.9 per cent in 2015 - there was an "uneven performance" across sectors. Similarly, overall unemployment remained low at 2.1 per cent, but redundancies rose.

The Budget measures, he said, aim to see Singapore through this period of transition. "We can aim for quality growth of 2 per cent to 3 per cent, if we press on in our drive for higher productivity and work hard to help everyone who wishes to work, find a place in the labour force," he said.

Workers will be offered programmes to help them retrain and find new jobs. Businesses struggling with tough times will receive immediate relief. The construction sector, for example, will benefit from $700 million worth of infrastructure projects brought forward.

Companies will get help to embrace digital technology and innovate. A new $600 million International Partnership Fund will see the Government co-investing with Singapore-based firms in opportunities to expand overseas.

In all, the Government is setting aside $2.4 billion over the next four years to implement the strategies set out in the CFE. This is on top of the $4.5 billion earmarked last year for programmes to transform industries here, he said.

There will also be a personal income tax rebate of 20 per cent of tax payable, capped at $500, for income earned in 2016.

The Government will spend an additional $160 million in the next five years on community mental health efforts. Medifund will get a $500 million top-up.

There were also measures to make Singapore more environmentally sustainable - a new carbon tax to be introduced in 2019 will levy between $10 and $20 per tonne of greenhouse gas emissions by heavy emitters - and measures to encourage a move to greener vehicles.

It was, in short, an expansionary Budget, with ministries' expenditures expected to be $3.7 billion, or 5.2 per cent, higher than last year. However, it included a permanent 2 per cent downward adjustment to ministry budget caps from this year on.

Responding last night, the Singapore Business Federation said it was disappointed with the "inadequate short-term support" to lower business costs. But it welcomed steps to boost innovation and help firms go international.

Others were more upbeat. "It creates opportunities for Singaporeans to chase their dreams and excel internationally, while also providing protection in the current uncertain climate," said Mr Low Hwee Chua, regional managing partner for tax, Deloitte Singapore and South-east Asia.

Parliament will debate the Budget and government spending plans over two weeks from next Tuesday.