MINISTRY OF TRADE AND INDUSTRY

BG GEORGE YONG-BOON YEO Minister for Trade and Industry

1. Our vision is for the Singapore economy to be entrepreneurial and knowledge-intensive, with globally competitive manufacturing and services sectors.

Globally Competitive Manufacturing and Services Sectors

2. Manufacturing will continue to be a key engine of growth for Singapore. To increase manufacturing's value creation in Singapore, we will encourage companies to adopt more sophisticated products and production methods. R&D, market development and brand management will all become more important.

3. Besides strengthening electronics, chemicals and engineering, EDB will build up biomedical science as the fourth pillar of manufacturing. EDB will attract leading international companies dealing in pharmaceuticals, biotechnology, medical devices and healthcare services to Singapore.

4. In addition, we will develop new growth sectors in healthcare, education, infocomm and media, while continuing to promote traditional services like trading, logistics, transportation, tourism and financial services. We will promote the further deregulation of our services sectors to foster greater competition and growth. We will remake Sentosa.

Developing a Vibrant Enterprise Ecosystem

5. We will foster a vibrant enterprise ecosystem that helps local businesses to flourish and internationalise, and international businesses to locate high value-added activities here.

Pro-Enterprise Environment

6. To ensure that Singapore remains one of the most business-friendly places in the world for enterprises, we will continue to cut red tape and remove regulatory barriers. We will put in place a framework for competition and fair trade. We will keep our costs competitive and our taxes low to encourage and reward enterprise.

7. Land is scarce in Singapore and our industrial land costs more than in some other countries. JTC Corporation (JTC) will provide superior value to investors through excellent infrastructure and support facilities. JTC will explore new ways to intensify and optimise land use.

8. We will also keep our energy costs internationally competitive by opening up the electricity and gas markets. About 40% of electricity sales are already open to competition. We aim to increase this to 70% by the end of this year. Competition for small consumers will commence next year. To diversify fuel sources for our energy market, the Energy Market Authority (EMA) will facilitate the import of liquefied natural gas (LNG).

Knowledge and Innovation

9. Knowledge and innovation are key drivers of the new Singapore Economy. We must create a knowledge-rich environment and nurture an innovation-driven workforce.

10. We will build up one-north, a hub for entrepreneurs, scientists and researchers to work, live, meet, exchange ideas and strike deals. The Agency for Science, Technology and Research (A*STAR) will foster world class scientific research in selected areas and develop talent for a vibrant knowledge-based Singapore.

11. We are working with the Ministry of Law to build a strong and dynamic intellectual property (IP) regime, so as to develop Singapore into a centre for IP and innovation, and encourage the creation and commercialisation of IP in Singapore.

12. We will also work with the Ministry of Manpower to upgrade the skills of our workforce, and to attract global talent. The Singapore Productivity and Standards Board (PSB) has been reorganised to champion total factor productivity and innovation at all levels of our society and renamed the Standards, Productivity and Innovation Board (SPRING Singapore).

Linkages with the World

13. We will help our enterprises gain the best access to world markets. We will continue to support the WTO and a successful conclusion of the Development Agenda launched in Doha last year. We will also pursue Free Trade Agreements (FTAs) with our key trading partners. Our base is the ASEAN FTA. We will continue to support the economic integration of ASEAN, and help strengthen ASEAN's competitiveness. To catalyse deeper linkages of the region with the world, we have signed FTAs with New Zealand and Japan, concluded negotiations with the European Free Trade Area, and are negotiating with the US, Canada, Australia and Mexico. We are also working toward a FTA between ASEAN and China, and closer economic partnerships between ASEAN and Japan, as well as between ASEAN and Australia and New Zealand.

14. These will help make Singapore a key node linking Asia to the rest of the world. We want Singapore to be a major hub for HQ services, R&D, product development, logistical, financial and service support for international companies operating within a 7-hour flight radius.

Enterprise Development

15. We will nurture enterprises at different stages of development and promote the development of new economic activities. We will also assist start-ups by improving their access to capital, including attracting venture capitalists to Singapore and encouraging more private sector funding of venture projects.

16. To help Singapore-based companies go international, the Trade Development Board has been reorganised and renamed International Enterprise Singapore (IE Singapore). IE Singapore will set up business support offices in selected cities, especially in China and India, to provide on-site assistance and Singapore Centres for our companies to cluster together and share resources. We will also encourage foreign SMEs to establish operations in Singapore and partner Singapore companies in third countries.

17. In addition to promoting innovation, SPRING Singapore will continue to help local SMEs improve their productivity through a wide range of programmes. It will push for greater standardisation as a way to improve productivity.