STRATEGIC INDUSTRIES IN SINGAPORE

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STRATEGIC INDUSTRIES IN SINGAPORE

29.

Mr Gautam Banerjee asked the Minister for Trade and Industry whether his Ministry regards any industry in Singapore as strategic for national defence, competitiveness and long-term sustainability and, if so, how does Singapore retain control over such strategic industries.

Mr Lim Hng Kiang: The Government has a handful of companies that are critical for national defence, and will ensure that defence interests are not compromised. To protect critical infrastructure in times of necessity, we have also put in place ownership restrictions in sectors like telecommunications, airports and seaports.

Ultimately, the competitiveness and long-term sustainability of Singapore is not safe-guarded through control of industries. Instead, the Government adopts a three-pronged approach. Firstly, we maintain an open investment policy and business climate to ensure that Singapore is competitive and sustainable for the long term. Secondly, the Government ensures that the necessary infrastructures are in place to support the continued growth of industries. Some newer examples of these include the LNG terminal, the CleanTech Hub@Jalan Bahar and the National Broadband Network. Thirdly, we adopt a regulatory framework that is conducive to business while setting appropriate standards to safeguard the well-being of Singapore. In introducing regulation, we make a conscious effort not to stifle enterprise and innovation, and allow the market to provide efficient and competitive outcomes.

This approach has served us well in creating a vibrant and open business environment for both local and foreign companies. Indeed, since 2007, the World Bank has ranked

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Singapore number one worldwide for "ease of doing business" in their Doing Business reports. Significantly, top-tier companies continue to invest in Singapore, adding to our vibrant business landscape of more than 7,000 MNCs, 46,000 international companies and 160,000 SMEs. Notwithstanding the global financial crisis, a diverse range of leading companies have embarked on factory openings or ground breakings recently, such as Samsung-Siltronic (Electronics), Halliburton (Oil and Gas), Rolls Royce (Aviation), Renewable Energy Corporation (Clean Energy), DigiPen (Interactive Digital Media Institute), Genentech (Biologics) and Intellectual Ventures (IP Management) to name a few. This diversity and depth of companies attest to the confidence and faith that companies around the world have in our economy and will help to support our economy through challenging times in the future.