ECONOMIC RECOVERY

Mr Tay Beng Chuan asked the Minister for Trade and Industry what is his assessment on the prospects of economic recovery for Singapore this year and his advice on the strategies the business community should adopt in response to the fast changing economic circumstances.

The Minister for Trade and Industry (BG George Yong-Boon Yeo): Mr Speaker, Sir, DPM Lee has already given the Government's assessment of the current economic recovery. I will not repeat it here.

The pace of economic recovery has exceeded our expectations. With better business prospects, more companies should do better this year. However, our companies should not relent in their efforts to upgrade their operations, acquire new capabilities and penetrate new markets. We have to stay globally competitive in the modern economy.

During recession, it is easier to get companies to upgrade their capabilities as it is a matter of survival. In good times, companies may become complacent. The region is slowly recovering and our regional competitors will emerge stronger, especially if they follow through with serious reforms. Our companies must prepare for tougher competition ahead. They should press on with upgrading their manpower and technology capabilities and expand their market networks.

The Government has various enterprise support schemes and market development efforts to help our companies. Our SMEs, in particular, should take advantage of some of these programmes.