The strategies spelt out by the Committee on the Future Economy (CFE) will help the Singapore economy grow at an average of 2 to 3 per cent a year over the next decade.

However, the CFE co-chairmen — Finance Minister Heng Swee Keat and Trade and Industry (Industry) Minister S Iswaran — said yesterday that gross domestic product growth is by no means the only measure of success. Other indicators include the creation of opportunities for companies at home and abroad, as well as higher salaries for Singaporean workers.

Speaking at a press conference held at PSA Building, Mr Heng and Mr Iswaran were asked how the committee would measure the success of its recommendations.

In response, Mr Heng noted that global growth has “slowed throughout the world”. He said, “When you look at newly industrialising economies or advanced economies, in fact, 2 to 3 per cent (growth) is quite a respectable number.”

But he added, “What is more important is that the opportunities remain in Singapore for businesses, and (there are) opportunities in the region.”

Last month, Prime Minister Lee Hsien Loong said at a dialogue that the Republic would have done well if it grew by an average of two to three per cent annually for the next decade. Mr Iswaran reiterated that the range was “appropriate and realistic”, but one will also have to look at how the recommendations translate to career and wage opportunities for Singaporeans, he said. He added, “That is where our initiatives in terms of productivity and also in being more regional — and therefore creating new and different types of jobs — are going to be very relevant.”

Mr Heng noted that the various sectors of the economy each face different opportunities and challenges.

By the end of the year, there will be 23 Industry Transformation Maps (ITMs) covering around 80 per cent of the economy. First announced in the Budget last year, six ITMs have been launched so far.

The logistics ITM, for example, was launched in November last year. PSA International group chief executive Tan Chong Meng, who co-chairs the Subcommittee on the Future City, said he expects the industry to grow in the next three to five years, with better players carrying out more efficient deliveries in the market.

“The measurement of our (success), given the shifting environment, is not going to be as easy as in the past where we look for things that relate to our gross domestic product,” said Mr Tan. “There will be movements in capability and innovation, before it becomes movements in value. But we have to learn to do it quite fast.”

While Mr Lee had said in his Chinese New Year message a fortnight ago that the CFE would lay out the blueprint for growth in the next 10 to 15 years, the committee said in its report that the strategies were crafted for the next decade.

Asked about this at the press conference, Mr Heng said, “I suppose the shorter timeframe reflects the fact that the changes are really a lot faster at this stage than at the beginning. And if you look at the last (review of the economy) and the one before that, it was about seven years (in between) each. So I think it’s good for us to do a review every now and then.”

Prior to the CFE, the previous review carried out by the Economic Strategies Committee was completed in 2010, while its predecessor, the Economics Review Committee, submitted its report in 2003.

Source:
courtesy of TODAY

by VALERIE KOH

If you have any stories or news that you would like to share with the global online community, please feel free to share it with us by contacting us directly at [email protected]