THAILAND'S ECONOMIC GROWTH (Effect on Singapore)

Mr Chiam See Tong asked the Minister for Trade and Industry whether the rapidly expanding economy of Thailand which is growing faster than any of the other ASEAN countries will have in the long term any adverse effects on Singapore's economic growth.

BG Lee Hsien Loong: Singapore's prosperity does not depend on the poverty of our neighbours. On the contrary, when our ASEAN partners prosper, our trade with them increases, and all the countries enjoy a more harmonious relationship and a more stable South East Asia. Such a climate is conducive for growth throughout the region. It is in our interest that our neighbours do well, whether it is Thailand, or whether it is the Philippines, Brunei, Indonesia or Malaysia.

Some economists believe that Thailand has the potential of becoming a fifth Newly Industrialising Country (NIC). If it does so, Singapore will have to fight harder for our share of foreign investments, and for our markets in the developed countries. We will have to work harder to upgrade our skills and industries to remain competitive. But these we must do anyway. Otherwise, even if Thailand fails to overtake us, other countries more advanced than Thailand, such as South Korea or Taiwan, will leave us behind.

In point of fact, the statement that the Thai economy is "growing faster than any of the other ASEAN countries" is not correct. In 1987, Singapore's growth of 8.8% exceeded Thailand's figure of 6.6%. Value-Added (VA) Per Worker of New Manufacturing Investment Commitments, Skill Profile of Workers of New Investment Projects (Cols. 61 - 62)