MINISTRY OF TRADE AND INDUSTRY

BG (Res) LEE HSIEN LOONG Deputy Prime Minister and Minister for Trade and Industry

Economic Growth

The Singapore economy grew by 6.5% in 1991. This slowdown was expected in view of the weakness of the industrialised economies and our supply-side constraints. For the next 3-5 years, we expect about 5-7% growth per annum. Beyond that, growth will probably slow down to 4-6% per annum. This is inevitable as the economy matures.

2. To sustain growth, we must qualitatively improve the economy and make better use of our resources. Faster growth depends on timely restructuring. The Government will help industries and companies to restructure with as little dislocation as possible. We will upgrade the workforce, restructure existing economic activities, promote science and technology, and develop more global and regional linkages. We will continue to provide efficient infrastructure to support our economic development.

Education and Training

3. The Government will create more places in the universities, polytechnics and technical institutes to train skilled manpower for economic development. Intakes of science and engineering students into the universities, polytechnics and EDB institutes will be increased. The Government will encourage employers to train workers, for example through VITB apprenticeship schemes.

4. We will create more opportunities for mature workers to retrain. Currently, VITB offers 50,000 places for worker education (BEST and WISE), and 20,000 places for skills training. VITB will consider conducting full-time modular courses in addition to the part-time courses currently available. NPB will offer FAST FORWARD programmes for more subjects, using other languages besides English. By 1996, NPB aims to train 50,000 workers annually through 20 FAST FORWARD courses. This and other programmes will double the participation of mature workers in SDF-supported training courses to 14%. Workers can also further their studies in the Open University.

Restructuring of Economic Activities

5. The Government will help sectors which have not kept pace with economic changes to upgrade and restructure. In the retail sector, some small retailers face difficulties. Demand for their wares has declined because of changes in consumer taste and life-styles. They face keen competition from bigger and more profitable companies for workers and shop space. The EDB, HDB and MOL are together working out plans to help these small businesses become more viable, by doing joint promotion, centralised buying, and more systematic business inventory control and book-keeping.

6. Together with the private sector, EDB has set up the Enterprise Promotion Centre to give direct help to local companies in management and financial matters, and to disseminate information on Government incentive and assistance schemes.

Science & Technology

7. Singapore has done well promoting foreign investment, but we need to do more to encourage innovation-driven activities. The Government will spend up to $2 billion over the next 5 years to support industry-driven R&D, develop centres of excellence in science and technology, train research personnel and provide infrastructural support. Our target is for the public and private sectors together to spend 2% of GDP on research and development by 1995.

Global and Regional Linkages

8. We will continue to build global and regional linkages so that the Singapore economy can tap into as many sources of growth as possible. We will do this at multilateral, regional and bilateral levels. We will participate actively in international and regional forums and groupings like GATT, APEC and ASEAN to promote international trade and economic co-operation.

Infrastructure Provision and Promotional Activities

9. Government will continue to invest to improve and upgrade infrastructure. The seven islands off Jurong will be reclaimed and amalgamated by 1998 for industrial use. Work on the first Business Park in Jurong East will begin in early 1992.

10. The PUB will invest $6 billion over the next five years to expand its generation, production, transmission and distribution facilities for electricity, water and piped gas. It will build a new gasworks in Senoko.