Economic panel proposes 7 key steps to drive Singapore’s growth

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The Committee on the Future Economy (CFE) has come up with seven recommendations for Singapore’s next phase of growth, focused mainly on building an open and connected economy, promoting trade liberalization, supporting innovation, and strengthening digital capabilities and data analytics.

In a statement, the CFE said that following a year of multisectoral consultations, a study of global trends, and a revisit of Singapore’s operating assumptions, it has identified seven “mutually-reinforcing strategies that will maximise the chances of Singapore’s success.”

It said the suggestions were in view of the “significant structural shifts in our external environment in the last few years,” noting that global growth has been subdued and is expected to be lower than in the previous decade.

In its recommendations submitted to the Prime Minister, the committee’s first proposal is to  deepen and diversify international connections by pressing on with trade liberalization, setting up a global innovation alliance, and deepening knowledge markets.

It also pushed to acquire and utilize deep skills, and strengthen enterprise capabilities to innovate and scale up.

Another measure is to build strong digital capabilities. This entails helping small and medium enterprises adopt digital technologies, building deep capabilities in analytics and cyber security, and leveraging data as an asset.

The fifth recommendation is to develop a “vibrant and connected city of opportunity” by investing in external connectivity, building partnerships, and developing exportable capabilities.

The CFE also proposes to develop and implement “industry transformation maps” for each industry and to maximize synergies across industries.

Finally, Singapore should “partner each other to enable innovation and growth.” This calls for encouraging trade associations and chambers and unions to work together, creating a regulatory environment in support of innovation and risk-taking, using lead demand to develop promising industries, reviewing and reshaping Singapore’s tax system, and creating a sustainable environment.

Co-Chair of CFE and Minister for Finance Heng Swee Keat said: “The CFE recommends that, in the face of unprecedented global challenges and greater uncertainty, our response must be to keep Singapore relevant to the world. The CFE’s strategies and recommendations will help us keep Singapore open and connected to the world, while building deep capabilities in our people and businesses to benefit from the opportunities that we can create.”

Co-Chair of CFE and Minister for Trade and Industry S Iswaran added: “With rapid changes in the global economy, the imperative for Singapore remains the same—to be an open economy that is connected to the world and relevant to its needs. The CFE recommendations aim to help our people and our enterprises develop deep capabilities that will enable Singapore to reshape our economy and seize new opportunities at home and globally.”

The CFE was established in January 2016 to build on the Economic Strategies Committee’s work, and to take a fresh look at global developments and Singapore’s economic model in order to address the new challenges that the sovereignty faces.

Photo: Takashi Matsumoto