Speech by SMS Low Yen Ling at the AfA on Business Competitiveness Report launch

Mr Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry,

Mr Mark Lee, Vice-Chairman and Honorary Treasurer of Singapore Business Federation and Co-Chair of AfA,

Dr Peter Ong, CEO of KH Roberts,

Distinguished guests,

Ladies and gentlemen,

Introduction

1. Good morning. Thank you for joining us today for the release of the Alliance for Action (AfA) on Business Competitiveness report. 

2. As DPM Gan outlined, the AfA on Business Competitiveness was formed against a backdrop of a challenging operating environment. Nevertheless, there are bright spots on the horizon for Singapore and our region. We must proactively advance and maintain our competitiveness, and we are doing this from a position of strength. The government, private sector, TACs, and trade unions are working together to enhance Singapore’s long-term competitiveness. This solidarity across the board strengthens our resolve and chances of success. 

3. Since the AfA started its work in February, we have made encouraging progress in engaging and listening to the concerns and needs of the business community and industry stakeholders. We’ve heard the views and pain points raised by business owners and industry leaders over the course of several discussions, focus groups, and feedback sessions. This report is the culmination of thousands of hours of careful listening, close engagements, and deep exchanges on the challenges businesses face today. 

Key AfA Recommendations 

4. With these insights, the AfA has put forth 27 recommendations to address the businesses’ pain points and needs in three critical areas – manpower,  land, and the regulatory environment. Let me highlight the topline recommendations.

a. On manpower, we understand that businesses need more help toachieve productivity-driven growth.The AfA proposes diversifying access to higher-skilled workpermit holders by expanding the Non-Traditional Sources Occupation List (NTS OL), for firms in the manufacturing and services sector, specifically to include selected machine operators and labourer roles to facilitate our Manufacturing 2030 goal. In addition,the AfA recommends enhancing the Manpower for Strategic Economic Priorities (M-SEP) Scheme to provide companies with greater certainty and wider access to manpower. Specifically, the AfA suggests lengthening the current two-year support period of the M-SEP so that companies can tap a wider range of programmes to qualify for M-SEP. We hope this will ease manpower constraints and uplift the growth of productive sectors. 

b. Another critical area the AfA is addressing is land use. As a small island, Singapore is always conscious of the need to ensure efficient and productive land use.The AfA found that lengthy construction periods reduce the effective periods for businesses to utilise their completed developments. Thus, we are proposing an extension of industrial land lease tenures of up to three years for greenfield industrial land allocations. With this, businesses can enjoy the full 20 or 30-year lease period to better recover their investments. We also suggest longer lease renewal tenures for businesses that invest significantly in productivity and redevelopment and flexible tenure structures for businesses that have demonstrated strong productivity outcomes and job creation. 

c. On regulatory frameworks, we have identified the areas that require more facilitative and streamlined processes. We have heard the feedback on the challenges businesses face in their green journey. For example, solar developers have shared that they must obtain multiple approvals from different agencies, and the process can be time-consuming and costly. The AfA proposes a Whole-of-Government approach to address regulatory issues related to the green transition. The Energy Market Authority will take the lead in championing, driving, and coordinating regulatory reviews in the solar sector. This coordinated approach will be complemented by support from the SME Pro-Enterprise Office (PEO). Likewise, the new CORENET X platform introduced by regulatory agencies will help redesign and streamline the regulatory processes for building and infrastructure works, from the planning to the completion stage. 

5. For details of the report’s findings and recommendations, you can access them online shortly after the launch. We recognise that many of the issuesencountered by businesses are multi-faceted. There is no silver bullet that can solve all of them immediately. Some may take longer to resolve, and some may be worked out with some trade-offs. For others, favourable outcomes may only materialise further down the road. Regardless, the Government remains committed to co-creating solutions with businesses to support their growth for the greater good of our economy. 

6. As co-chair of the AfA, let me now extend my heartfelt thanks to our stakeholders.

a. To all AfA members, thank you for your candid and invaluable views that have helped pinpoint us to critical areas for co-solutions. I want to thank   Ernie, Susan, and Neil, especially for leading and steering the numerous discussions toward constructive outcomes.  

b. To all the businesses and government agencies consulted, thank you for your time and participation in the focus group discussions and for working closely with us to form the recommendations. 

7. Last but not least, I would like to thank my fellow co-chair of the AfA, Mr Mark Lee, for your astute leadership and the Singapore Business Federation for working tirelessly with my colleagues at the Ministry of Trade and Industry to deliver the recommendations in today’s report. 

KH Roberts’ Journey: Innovation in Action

8. I want to thank KH Roberts for hosting today’s event. The company is an excellent example of staying competitive successfully through innovation. KH Roberts tapped on Enterprise Singapore’s Scale-Up programme to innovate, develop and implement growth strategies involving automation, internationalisation and talent development. 

9. I understand that KH Roberts has prepared a showcase of their innovations and technological developments, which I look forward to.

Conclusion

10. The release of the Business Competitiveness report today marks the start of a new chapter of our continual journey to maintain Singapore’s business shine. Working hand-in-hand with the business community, trade associations and chambers, and trade unions, we will move forward to overcome the challenges that come our way. Our tripartite solidarity sets Singapore apart and gives us a strong advantage to succeed. As we resolve to remove the gridlocks, we will unlock new opportunities for growth and build a resilient and competitive economy for Singapore.

11. Thank you.