Written reply to PQ on Economic Restructuring Strategies

Question:

Mr Gan Thiam Poh: To ask the Minister for Trade and Industry whether there is a need to review our economic restructuring strategies in view of the rapid change in technology, the increased risk of deglobalisation and protectionism so as to continue strengthening our competitiveness.

Written reply

1. The Committee on the Future Economy (CFE) had identified the key global and structural shifts, as well as rapid technological changes and growing sentiments against globalisation that would impact us, in developing a comprehensive set of recommendations to guide our economic strategy for the next 5 to 10 years. Given this, our key economic restructuring efforts will be centred on strengthening enterprise capabilities, building strong digital capabilities, deepening the skills of Singaporeans, and continuing to work together with other economies to stay open and connected, build stronger links, and collaborate closely to boost growth and competitiveness.

2. One of the recommendations of the CFE was the development of Industry Transformation Maps (ITMs), which are industry-specific roadmaps that organise our economic restructuring efforts. The ITMs were developed through an integrated and coordinated tripartite approach, that brought together key stakeholders. We have since launched ITMs for each of the 23 ITM sectors, which together cover 80 percent of the Singapore economy. Each ITM is tailored to the opportunities, needs, and challenges of specific sectors. Some sectors such as those in the Manufacturing and Modern Services clusters will focus on growth and strengthening their competitive edge, while other sectors such as those in the Lifestyle and Built Environment clusters will be transforming for higher productivity and better jobs. There will be bright spots within every sector

3. The ITMs are dynamic plans that will be updated to respond to changes in the economic environment. We will continue to monitor the progress of our ITMs, refining strategies where necessary to ensure they stay relevant as new trends emerge.

4. Ultimately, the success of our economic restructuring efforts depends on the collective efforts of all stakeholders. Besides the Government, which will serve as an enabler to support this transformation, our trade association and chambers (TACs) and unions also have a key role to galvanise firms of every size, and mobilise workers in every sector, to be part of this transformation journey. Our companies need to reconsider the way they operate and compete, and how they partner one another to sustain competitiveness and create good jobs.