MINISTRY OF TRADE AND INDUSTRY

Growth Target

We aim for an annual GDP growth rate of 6% over the next five years. This is a growth rate which we can sustain, at this stage of our economic development, given our limited resources, particularly labour.

However, even 6% will not be easy to achieve. Much will depend on the availability of export markets. A global recession, or even a slowdown in the economies of our neighbours and OECD countries, must affect Singapore. But whatever the external environment, sound economic policies can mitigate its effects and maximize our chances of achieving our economic objectives.

Multi-National Corporations

Multi-national corporations have been a key factor in upgrading and restructuring our economy. They offer good jobs for Singaporeans, link us into the international economy, and provide us access to capital, technologies and markets. Foreign investments will remain indispensable for our growth. To attract MNCs, we will promote Singapore as a key node in their global operations.

Local Businesses

At the same time, local businesses also have an important role. Many of the larger companies have prospered in the last two decades. They have shown how indigenous entrepreneurship can germinate and grow in our business environment.

As our economy develops, there will be fresh opportunities for forward-looking, local small and medium enterprises. Many SMEs have struck out on their own, creating new businesses for domestic and export markets. Other SMEs can service MNCs, which require reliable and competent supporting industries to supply them with parts and components. The Government will help SMEs grow and find their rightful place in the Singapore economy.

Moving Offshore

Offshore activities are a natural extension of our domestic economy. Our future depends not only on what we can produce domestically for export, but also on what we can earn from abroad. We cannot confine ourselves to business opportunities in Singapore.

We encourage MNCs and local companies in Singapore to distribute their business activities among different countries in the region, in order to benefit from the comparative advantages of each country. EDB has started an International Direct Investment Programme to help them do so. We offer fiscal and other incentives to assist local companies venture overseas.

Training

Our economic strategy hinges on one key resource - people. We need to do more in manpower development and post-employment training. The Skills Development Fund will support training in both existing and emerging skills. In 1990, the National Productivity Board will start using television to broadcast programmes for worker training. Training Television will help more workers to acquire skills useful in their careers.

Infrastructure Development

We will upgrade our utilities, ports, airport, and telecommunications, to stay efficient and competitive. Over the next five years:

(a) The PUB will spend $3.6 billion on utilities projects, including a new power station on Pulau Seraya, and a new dam and reservoir at Sungei Linggiu in Johore.

(b) JTC will upgrade Jurong Port to handle bulk cargo more efficiently, and build a business park in Jurong East, to meet the specific needs of modern business and high technology industries.

(c) SISIR will set up an Electronics Test Centre to support local electronics industries in testing and evaluating parts and components, and a Food Technology Centre to help the food industry with innovation, processing, and product packaging.

(d) TDB's TradeNet Project will streamline trade documentation procedures when it comes into operation in 1989. TDB will also set up a Design Centre to improve design standards and help market Singapore products internationally.

(e) Tourism projects will include conservation and revitalization of historical districts and buildings, redevelopment of Fort Canning Park, construction of a causeway to Sentosa, construction of a resort on Lazarus Island, and development of a theme park at Marina South.

BG LEE HSIEN LOONG Minister for Trade and Industry