Speech by DPM and Minister for Trade and Industry Gan Kim Yong at the CBD Leadership-in-Action Event

Boon Chye

Mildred

Distinguished Speakers, Guests, Ladies and Gentlemen

Opening 

1. Good morning. Thank you for inviting me to this year’s Leadership-in-Action.

Navigating change and creating opportunities

2. As the theme of today’s event suggests, we are in a time of profound change. 

Geo-economic shifts

3. The world has become increasingly complex. We are now facing rising geopolitical tension between US and China. 

4. In just about a week from now, we will find out who the 60^th President of the United States will be. 

5. But regardless of who is in the White House, we expect geopolitical tensions to continue to intensify. 

6. At the same time, we are also seeing the escalation of conflicts, in the Middle East, as the Russian-Ukraine war rages on. Furthermore, we are confronted with global challenges, such as climate change, which requires a global solution, that needs every nation to be able to work together. 

7. These are changes and challenges in our journey ahead. 

8. But as the second half of the theme of today’s event highlights, navigating change is not simply about assessing the challenges that lie ahead, but also identifying the opportunities therein. 

9. Even amidst a more complex and fractured global trading order, we see opportunities emerging in our region. 

a. As companies around the world review their production and supply chains, Southeast Asia, including Singapore, is emerging as a prominent hub for manufacturing, as well as services such as finance and insurance, professional services, and information and communications. 

b. In fact, while global Foreign Direct Investment (FDI) flows declined by 10%, FDI flows to ASEAN held strong in 2023, and reached a high of US$230 billion. 

c. ASEAN’s growth for 2024 and 2025 is expected to be robust at around 5%, higher than the projected global average of 3%. It is also projected to become the fourth largest economy in the world by 2030, with a combined GDP of US$4.5 trillion. 

Need for regional, digital and green skills

10. To tap into the growth of ASEAN, companies will require leaders who can– 

a. Understand the nuances within the respective ASEAN Member States;

b. Cultivate enduring relationships with local business partners; and 

c. Develop the acumen to navigate the political and social complexities. 

11. This is why we have developed various programmes to help companies build up a pipeline of leaders who will be ready to take up regional or even global corporate leadership roles. 

a. Earlier this year, we launched the Global Business Leaders Programme to support companies to send their local talent on overseas work assignments for training and exposure. 

b. In tandem, we had also launched the Overseas Market Immersion Programme to support companies to re-skill their employees through on-the-job and in-market training in global roles. 

c. I encourage companies to tap on these programmes and opportunities to help potential leaders in your organisation to gain useful overseas work experience and insights. 

12. Such regional knowhow is but one of the skillsets that companies will need to build within their workforce. As technologies such as AI and quantum computing revolutionise how companies conduct their businesses, it will be increasingly imperative for companies to build up capabilities in such technologies. 

a. In our National AI Strategy 2.0, we had set out a target of tripling the AI practitioner pool to 15,000 over the next three to five years. These practitioners are critical to supporting companies’ efforts to embrace AI. 

i. In this regard, through company-led training programmes and career conversion programmes under the TechSkills Accelerator initiative, we are supporting companies to build and develop talent in AI and data analytics. 

ii. Companies can also tap on our programmes to grow your AI product development teams. 

b. This will complement our efforts to drive the adoption and development of AI-driven solutions among our industries, including the setting up of sectoral or company-based AI Centres of Excellence (CoEs). 

13. Likewise, as the pressure for industries to reduce their carbon footprint grows, there will be an increasing need for companies to build up green skills within their workforce. 

a. In particular, the latest edition of the Skills Demand for the Future Economy report by SkillsFuture Singapore had identified three critical green skills – namely, environmental and social governance; carbon footprint management; and sustainable manufacturing. 

b. This is not surprising – as companies adopt environmental, social and governance (ESG) principles, they will need to build up ESG skills. 

c. Similarly, as companies seek to reduce their carbon emissions within their supply chains, skills such as carbon footprint management and sustainable manufacturing will be critical for roles such as energy engineers, operations and maintenance managers, and engineering procurement managers. 

d. Requirements on climate-related disclosures will also drive the demand for skills in carbon accounting, carbon markets, and sustainable finance. 

e. MTI, in conjunction with SkillsFutureSingapore, has set up the Green Skills Committee which brings together industry players, training providers and other partners to develop skills and training programmes for the low-carbon economy. 

i. For example, in the Energy sector, the Energy Market Authority is working with training providers to introduce training programmes to address clean energy skills gaps identified by industry. This includes skills for the safe handling of energy storage systems and the planning and execution of high voltage direct current projects.

ii. Likewise, to support the development of a carbon services and trading ecosystem in Singapore, our agencies have been working with our universities to develop training programmes in carbon management, services and trading. 

Ageing workforce

14. In addition to the need to build regional, digital and green skills to stay competitive, companies will also need to manage greater diversity within their workforce because of our demographic trends. 

15. With an ageing population and falling birth rates, companies in Singapore will increasingly see multi-generation workforce in their workplaces. 

a. A study by BSI on age-diverse workplaces indicated that flexibility about when, where and how much they work are key considerations to support older workers. 

i. In particular, workers increasingly value flexibility as they age, and older workers are more likely to stay employed for longer if their jobs are more flexible. 

b. The study also noted that skills maintenance and development is key to enable matured workers to remain in the workforce for longer. 

i. In this regard, companies play a pivotal role in providing upskilling and reskilling for their existing workers, in order to open up career development and job mobility opportunities.

c. Last but not least, the study also noted the importance of building an age-inclusive culture. Older workers appreciate open and inclusive work cultures where their voices are heard and which allows them to help each other, as it gives them a sense of purpose.

i. Companies need to therefore create an equitable and affirmative culture in the organisation, and to provide managers the tools to support older workers. 

d. I therefore urge you to plan ahead to welcome a multi-generation workforce – 

i. To re-design and even fractionalise jobs to create more flexible work arrangements for senior workers;

ii. To strengthen re-skilling and upskilling support for senior workers, including by tapping on the SkillsFuture Level-Up Programme that we had introduced earlier this year; and 

iii. Lastly, to create inclusive, multi-generational workplaces. 

Setting the tone right – from the top 

16. As leaders in your respective organisations, you have the authority and responsibility to navigate your companies through these challenges in order to thrive and succeed. 

17. And as the age-old adage goes, leadership starts at the top – so it is imperative that we set the tone right from the top. In particular, we should reflect the diversity we want to see in the organisation at the highest level. 

18. There has been much attention focused over the past years on greater female representation on company boards. 

a. There is good reason for this. 

i. A study by McKinsey found that companies in the top quartile for gender diversity on their executive teams were 25% more likely to have above-average profitability compared to those in the bottom quartile. 

ii. Similarly, Credit Suisse’s Gender 3000 report found that companies with more than 20% women on their boards saw consistently higher returns on equity and better stock price performance than those with less gender diversity. 

b. Here in Singapore, I am glad that we have made some progress towards greater gender diversity on our boards. 

i. Among the top 100 SGX-listed companies, women’s participation on boards has tripled from 7.5% in 2013 to 25.3% in June 2024.

ii. The top 100 Institutions of Public Character have also raised women’s participation on boards from 27.6% to 31.5% over the past five years. 

iii. Over the same period, Statutory Boards have raised women’s participation on boards from 23.3% to 34.2%. 

c. However, there is still more that we can do to pursue greater gender diversity. 

i. For example, outside of the top 100 SGX-listed companies, the proportion of women directors is lower, at about 14%. 

ii. There is also room to encourage greater gender diversity in non-listed companies. 

19. Besides gender diversity, we should pay attention to other forms of diversity. Indeed, research has shown that companies with diverse boards not only perform better financially, but also innovate more, and are better equipped to handle risks. 

a. I spoke earlier about the new skillsets that companies will need to build going forward. 

b. To drive organisational change, I urge companies to make deliberate effort to bring on directors with diverse experience and expertise to bring fresh perspectives to the team. 

c. In this vein, I am glad to note that more firms are appointing first-time directors with no previous board experience. 

i. Among the top 100 SGX-listed companies, first-time directors made up 66% of all new appointments, an increase of close to 20% compared to 2022. 

d. Let me also urge the Council for Board Diversity to continue working with companies to strengthen their disclosures on their targets, plans and progress to achieve board diversity. 

i. I note, that following the introduction of rules on disclosures on board diversity for SGX-listed companies in 2022, only about 40% of companies have disclosed diversity targets, and even fewer had disclosed plans, timelines and progress towards achieving these targets. 

ii. Ultimately, companies should recognise that it is to their benefit to have a greater diversity of perspectives, skills and experiences to better navigate the changes ahead. 

Closing

20. As the CEO of Apple, Tim Cook, said – “if you believe, as we believe, that diversity leads to better products, then you obviously put a ton of energy behind diversity, the same way you would put a ton of energy behind anything else that is truly important”. 

21. As we look to the challenges and opportunities that lie ahead, it is important that companies amass people with the right skills, talents, experience and perspectives to develop fresh insights, drive innovation and manage risks. This is critical both in the workforce and in company boards where matters of long-term strategy are discussed, debated and decided. 

22. I urge each of you to build greater diversity in your respective companies, as you expand your markets, strengthen partnerships and explore opportunities. 

23. Thank you.