MINISTRY OF TRADE AND INDUSTRY

BG LEE HSIEN LOONG Minister for Trade and Industry

The Economy

Singapore's average annual growth exceeded nine per cent for the past three years, higher than the four to six per cent that our indigenous resources, namely land and labour, can support. We will strive to keep up this growth for as long as possible, by raising productivity, tapping international and regional markets, and cooperating with our neighbours for regional prosperity.

Singapore has benefitted by integrating our economy with the region. Our traditional entrepot trade in commodities has expanded to include raw industrial and other intermediate inputs. We are becoming a hub for services like telecommunications and tourism.

Many multinational companies are distributing their activities throughout the region, to exploit the competitive advantages of each country. We will promote Singapore as a strategic node in their regional strategy.

We will continue to encourage investments in high-value manufacturing-related activities like automated production, research and development, and product design. We will promote centres for data processing, financing, distribution, shipping, and aviation to the region. We will capitalize on our communication links, business infrastructure and strategic location, and encourage both local and foreign companies to invest in neighbouring countries to develop their potential.

Productivity

NPB's Productivity 2000 initiative focuses on five main areas: work attitudes, skills upgrading, labour-management cooperation, management practices and use of manpower. NPB is targeting for employers to spend four per cent of payroll to train workers each year, especially those more than 40 years old. The SDF will set aside $20 million a year for the next three years to develop better training programmes and facilities. It will launch a pilot video-based scheme for workers this year.

Research and Development

The Science Park will build three new blocks of starter units and a Software Technology Building. SISIR will provide technical consultancy and R & D incubator units to help companies, particularly SMEs, to upgrade and do research.

We will restructure Government support for R & D including setting directions and priorities for new developments in the universities, the research institutes, the science park and the private sector.

Public Utilities

The PUB will spend $4.2 billion over the next five years to expand its generation, production, transmission and distribution capacities for electricity, water and piped gas. Pulau Seraya Power Station Stage II will be completed in 1993.

Preliminary work has begun on the Linggiu Reservoir Project in Johore. When completed in 1993, the dam will enable Singapore to draw 250 million gallons of water a day from the Johore River, as provided for under the 1962 Water Agreement.

PUB is discussing with Malaysia and Indonesia the purchase of natural gas. It is converting five boilers at Senoko Power Station from burning oil to gas.

Infrastructure

JTC will develop "business parks" to provide integrated facilities and buildings sited in well-planned park environments. Each park will accommodate a variety of business activities, e.g. design offices, data-processing centres, and marketing and distribution centres.

JTC will construct three multi-purpose berths at Jurong Port to build it up as a significant regional bulk distribution centre.

We will set up an Export Institute, an International Arbitration Centre and a Design Centre to support our exporters.

We will develop more Electronic Data Interchange (EDI) application systems to increase the productivity of our traders.

Tourism

Singapore is one of the world's top convention cities. STPB aims to maintain this position by promoting incentive travel and overseas conventions. In 1990, STPB will open new offices in Seoul, Osaka, Perth, Zurich and Stockholm.

We will continue to develop attractions that serve both Singaporeans and tourists. Work is under way to build a 3 km beach at Sentosa island. We will build a causeway to Sentosa, carrying a people-mover system. We will construct holiday camps, hotels and other attractions on the island. We will reclaim land between Buran Darat and Sentosa to build houses for resort style living, and for sports and commercial uses. We will develop the Southern Islands for recreational purposes.