MINISTRY OFCOMMUNICATIONS & INFORMATION TECHNOLOGY

MR YEO CHEOW TONG Minister for Communications and Information Technology

1. Information and communications technology (ICT) will drive and shape the world economy in the next century. We must respond quickly and take on the challenge of this digital wave to become a key ICT centre. ICT is both a key growth sector and an enabler for business, education and other sectors. We must also maintain our global standing in the maritime and aviation sectors. In land transport, we must build a world class transport system, maximise the use of public transport and ensure a smooth flow of traffic on the roads.

Information and Communications Technology

2. To be a key ICT centre, we need to be globally competitive in IT and communications.

3. The global telecommunications industry is undergoing dramatic changes in technology, in industry restructuring and in deregulation. To keep pace with these changes, we have shortened the monopoly period for SingTel's public basic telecommunications services licence by 7 years to end in the year 2000. We will deregulate across the entire range of services, and develop a vibrant and globally competitive communications sector. Our priority is to ensure high quality services at competitive prices, especially as communications charges are a major cost factor for knowledge-based services. We must be connected to the key communication nodes in the world, with sufficient bandwidth. Our policies will take into account the rapid convergence in digital technologies, so that innovative ideas and new services can be rapidly brought into the market.

4. The field of IT is also extremely dynamic, with strong growth in internet businesses and e-commerce. Notwithstanding our current strength in Asia, we must push aggressively forward, as our competitors are not standing still. We will ensure that our policy and business environment will attract IT businesses to hub their Asian, if not global operations in Singapore. As ICT is a knowledge industry that hinges on talent, we will work with the industry and educational institutions to provide the sector with sufficient trained personnel.

5. MCIT is working with the ICT community to formulate the ICT21 Masterplan. Our vision is to transform Singapore into a vibrant global ICT capital with a thriving and prosperous Net Economy by the year 2010.

6. To achieve this, we seek to achieve a number of key objectives in the ICT21 Masterplan:

a. to develop the ICT sector as the key growth sector in Singapore's economy.

b. to use ICT as a common platform to boost the performance of Singapore's knowledge-based economy; and

c. to leverage on ICT to enhance the quality of life and standard of living of Singaporeans in the Information Society.

Air Transport

7. Changi Airport expects to handle about 25 million passengers in 1999. While this will mark a return to pre-crisis levels, challenges remain in the aviation sector. For example, the growing trend of airline alliances and close co-operation among airlines will pose new operational demands in terms of airport facilities and services. Other challenges include increasing regional airport competition and the greater use of IT in various facets of aviation. Changi Airport must improve its services and expand and upgrade its facilities and infrastructure. Projects such as the on-going expansion of Terminal 1, the construction of the MRT station and Terminal 3 will help Changi Airport maintain its competitive edge.

Sea Transport

8. Although Singapore has retained its position as the busiest port in the world, PSA can expect much fiercer competition from other countries and ports. We will upgrade our port facilities and services to meet the challenges of the new millennium. Our ports will continually seek ways to increase their productivity and provide value-for-money services as part of an integrated logistics chain. We will develop Singapore into an international logistics hub. Where and when appropriate, port and marine services will be further liberalised to maintain our competitive edge. We will publicly list PSA in a few years' time when conditions permit. We will also develop the auxiliary maritime services to make Singapore a leading International Maritime Centre.

Land Transport

9. We will develop a world class land transport system which provides commuters efficient, comfortable and convenient rides in congestion-free traffic. The backbone of the public transport system will be the Rapid Transit System (RTS). We will expand the RTS network into a comprehensive network, doubling the current network of 83 km within the next 10 years. The 20-km North East MRT Line will be completed in 2002.

10. Public transport operators will offer multi-modal services to provide commuters with an integrated public transport system. Bukit Panjang will soon have the country's first Light-Rail Transit system. Sengkang and Punggol residents will also enjoy integrated rail-bus services in a few years time.

11. We will give emphasis to better land use and transport planning, expanding the road network, managing the population and usage of vehicles and demand for road space, and improving public transport.