Minister (Industry) S Iswaran's oral reply to PQ on ASEAN neighbours receiving aid and investments from China

​Question:

Mr Zaqy Mohamad: To ask the Minister for Trade and Industry (Industry) (a) what are the implications of recent significant partnerships, investments and aid which our ASEAN neighbours have been receiving from China especially in areas that will compete with Singapore's strategic economic engines such as ports; and (b) what are the Ministry's plans to ensure that our industries and companies stay ahead and continue to grow.

Oral Answer (to be attributed to Minister (Industry) S Iswaran)

1.China’s investments in Southeast Asia as part of the “Belt and Road” initiative help to meet the region’s infrastructure needs and enhance its connectivity. 

2.As a major investor in markets such as Indonesia, Malaysia and Vietnam, with Southeast Asia accounting for close to 25% of our total trade, Singapore welcomes further economic development in our region.  We actively engage our neighbours, bilaterally and through ASEAN, to broaden economic cooperation and create opportunities for our businesses.  This is complemented by our efforts to promote the free flow of trade and investment through the ASEAN Economic Community, our network of Free Trade Agreements and Investment Guarantee Agreements, as well as the in-market presence of our economic agencies.  Our economic agencies also work with industry partners and trade associations to track regional developments and identify opportunities.    

3. Mdm Speaker, we must expect that competition will continue to increase as our neighbours develop and move up the value chain.  This is not something new for Singapore and we have and will continue to press on with our efforts to enhance productivity, innovation and competitiveness.  To ensure that our industries and companies remain well-positioned for growth, the Government adopts a range of strategies across sectors.  Specifically on ports, which the member has highlighted, the Ministry of Transport will elaborate later on our efforts to keep our port competitive by investing in technology and automation to improve productivity and service levels.

4.Members will also be aware, as I have just elaborated, that we have embarked on a $4.5 billion Industry Transformation Programme.  The Industry Transformation Maps (ITMs) set out a growth and competitiveness plan for each sector, supported by initiatives to raise productivity, develop the right skills for the jobs in the sector now and in the future, drive innovation, and promote internationalisation, with Government playing its role and supporting as an enabler.  In doing so, these ITMs take stock of the external trends and domestic concerns affecting each industry, some of which the member has referred to in his question, in order to provide industry-focused support to companies.

5.Transforming our industrial sectors is part of our broader effort to build and sustain a vibrant and resilient economy in the long term.  This is also the focus of the Committee on the Future Economy, to ensure that our economy remains competitive and well-positioned for future opportunities.  The committee’s report will be issued soon.  

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