Speech by Minister Lim Hng Kiang at the McKinsey Innovation Forum

​SPEECH BY MINISTER LIM HNG KIANG AT THE MCKINSEY INNOVATION FORUM ON THURSDAY, 2 NOVEMBER 2017, 9.10 AM, AT JTC LAUNCHPAD @ JURONG INNOVATION DISTRICT, 2 CLEANTECH LOOP

Mr Oliver Tonby, Managing Partner of McKinsey Southeast Asia

Ms Diaan-Yi Lin, Managing Partner of McKinsey Singapore

Opening

1.         It is my pleasure to join you today at the McKinsey Innovation Forum. McKinsey and Singapore enjoy a strong partnership, and we welcome such forums that provide a good opportunity for the various stakeholders to discuss their insights on innovation and digital transformation.

Technological advancements can present opportunities for Innovation

2.         The theme of today’s event, “Build. Transform. Scale.”, is a timely one. Digital technologies are disrupting value chains across industries, while creating new possibilities and opportunities. Digitalisation is expected to contribute US$2 trillion in additional economic output by 2020. It will also help to level the playing field across the spectrum of enterprises – start-ups, small and medium-sized enterprises (SMEs), as well as large corporations. Firms who succeed in digital transformation can seize opportunities in the global economy with greater speed, scale and cost-effectiveness.

Singapore remains committed to create an environment that enables innovation.

3.         Innovation remains a cornerstone of Singapore’s economic development strategies. The Committee on the Future Economy (CFE) has recommended key strategies that build on our strengths and create an enabling environment for innovation. 

4.         One of the recommendations is to adopt a forward-looking approach towards regulations for companies to innovate. For example, the Monetary Authority of Singapore (MAS) has created a regulatory sandbox for fintech companies and financial institutions to develop and validate innovative financial solutions before launching them in the market. This sandbox has enabled PolicyPal, a Singapore-based start-up using artificial intelligence to simplify and digitise insurance, to experiment with their technology applications and product offerings before scaling up.  

5.         We will also continue to foster partnerships between our public research performers and private enterprises to drive innovation. For instance, the McKinsey Digital Capability Centre was developed in partnership with the Advanced Remanufacturing Technology Centre (ARTC), which is a public-private collaboration between A*STAR, Nanyang Technological University (NTU) and industry partners. The Digital Capability Centre centralizes the firm’s advanced manufacturing expertise to help manufacturers in Singapore and the region transform their operations through the adoption of Industry 4.0 technologies.   

6.         I am encouraged that our companies are also investing in new digital capabilities. Last year, the Development Bank of Singapore (DBS) launched its innovation facility, DBS Asia X (DAX), to explore fintech innovations and co-create solutions with partners including social enterprises, start-ups and universities.

 7.        We will also support our small and medium-sized enterprises (SMEs) so they can benefit from digitisation. At Budget 2017, the Info-communications Media Development Authority (IMDA) introduced the “SMEs Go Digital” programme to help SMEs build digital capabilities. SMEs can leverage the programme to digitalise their businesses processes, such as supply chain and billing management, by adopting proven solutions at subsidised rates. SMEs can also approach the SME Digital Tech Hub for specialised advice on areas such as data analytics, data protection and internet-of-things.

Training and upskilling to ensure Singaporeans stay relevant

8.         Importantly, we must invest in our people and equip them with the relevant skills to stay relevant. One way we are doing so is by working closely with the employers, industry associations and unions to develop and implement a Skills Framework for our industries. The Skills Framework provides key information on career pathways, as well as existing and emerging skills required for the various job roles in the industry. For instance, the Skills Framework for the Electronics industry identified artificial intelligence, internet-of things and data analytics as emerging skills that our people will need to ready themselves with. Such a framework provides a common understanding of the key skills required, facilitates skills recognition and supports the design of relevant training programmes.  

9.         Under Adapt & Grow, we have also introduced Professional Conversion Programmes (PCPs) for various sectors such as Financial Services, Infocomm Technology and Manufacturing. These programmes support our people, including mid-career switchers, to undergo skills conversion, thereby facilitating their movement into new occupations or sectors with good prospects for progression.

Singapore to pursue tangible economic deliverables as we assume ASEAN Chairmanship

10.      The digital economy is also a topic of great interest to the region.  As Singapore assumes the ASEAN Chairmanship next year, we intend to pursue a set of priorities that would address the modern needs of businesses, complement the domestic initiatives of ASEAN member states, and ensure that the region is future-ready. 

11.      This will involve working with the rest of ASEAN to streamline regional trade rules governing E-Commerce to promote greater digital connectivity and lower operating barriers to entry. Such efforts will enhance the regional trade architecture for E-Commerce, realise freer movement of E-Commerce goods and services across the region, as well as support the regional expansion of companies based in ASEAN.

Closing

12.      In closing, digital technologies are changing the global economic landscape. Singapore will continue to build on our strengths and create an enabling environment for innovation. Platforms like the McKinsey Innovation Forum play an important role in bringing everyone together to discuss and exchange views. I wish you all a productive and engaging forum ahead

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