Singapore received high praise in its Trade Policy Review at the WTO

Geneva, 14 July 2008 — Singapore received high praise in its Trade Policy Review at the World Trade Organization

Singapore is undergoing its 5th WTO Trade Policy Review (TPR).Day One saw good reviews from both the WTO Secretariat and the WTO Members.

The report prepared by the WTO Secretariat said that Singapore’s economy remains one of the most open and competitive in the world. The report noted that despite Singapore’s high degree of openness, the economy’s flexibility has enabled it to adjust rapidly to external shocks by continually improving productivity and competitiveness. The report lauded Singapore for its strong record of economic growth, job creation and low inflation during the period under review (2004 – 2007).While commending Singapore's good performance, the Secretariat commented that Singapore still faces several long-term challenges such as reducing vulnerabilities to external shocks and an ageing population.

Mr. Ravi Menon, 2nd Permanent Secretary of the Singapore Ministry of Trade and Industry and leader of the Singapore TPR delegation, said in his opening remarks at the TPR session how Singapore has been seizing the opportunities offered by globalization and liberalization, while dealing with the challenges. These challenges include competition from low cost producers, the transmission of external shocks, and increasing wage inequality between skilled and less skilled workers. He said that Singapore’s response has been to deal with these downsides not through protectionist policies, but by seeking to enhance competitiveness, build new capabilities, and ensure opportunity for all segments of society. Singapore’s approach was not to retreat from globalization, but to embrace it, maximize its benefits and minimize its costs.

A total of 20 members commended Singapore for its open and competitive economy which had contributed to an impressive economic performance over the past few years. Members also appreciated Singapore’s commitment to globalization and the multilateral trading system, through active participation in the Doha Round negotiations as well as supporting the objectives of the Aid for Trade Initiative (AfT) through inter alia, the Singapore Cooperation Program (SCP).

Responding to members, Mr. Menon thanked them for their positive comments. He explained that Singapore’s response to globalization was to maintain a sound and conducive macroeconomic environment, and restructure the economy towards higher value-added, knowledge or technology intensive activities that are less vulnerable to cost competition. Singapore has also been focusing on upgrading workers’ skills through retraining and continuing education programmes. Mr. Menon added that the government was helping Singaporeans affected by globalization not through unemployment benefits and welfare assistance, but through schemes like the Workfare Income Supplement scheme.

The Review will end on Wednesday, 16 July 2008.

The Singapore delegation comprised officials from the Ministry of Trade and Industry, Ministry of Finance, Ministry of Manpower, Attorney-General’s Chambers, Monetary Authority of Singapore and Economic Development Board.

MINISTRY OF TRADE AND INDUSTRY, SINGAPORE
14 JULY 2008