Minister outlines key roles for government in fostering long-term economic stability and growth
On August 28, 2024, Transport Minister and Second Finance Minister Chee Hong Tat warned against the growing influence of individualism, populism, and short-termism in politics, which have gained traction in some of the world’s largest economies. In a speech at the Economic Society of Singapore dinner, he emphasized that if these trends were allowed to affect Singapore’s political landscape, they could undermine the nation’s ability to implement sound economic policies and plan for the future.
Chee highlighted that good economics requires good politics, noting that the government’s role is not only to promote market solutions but to step in with decisive interventions when necessary. He identified three key roles for the government to play:
Ensuring Adequate Public Services: The government must ensure that essential services, such as public transport, are efficient and accessible. Singapore’s hybrid private-public approach in the bus industry has improved service quality by introducing regulated competition, which has enhanced reliability and commuter experience.
Supporting People in Transition: The government should help citizens adjust to economic shocks, like the COVID-19 pandemic, by preserving core industries and supporting workers through upskilling. The Job Support Scheme and the Aviation Workforce Retention Grant helped sectors recover quickly, showcasing Singapore’s long-term planning approach compared to other countries that laid off workers.
Planning for Future Investments: The government must look ahead and make bold decisions, such as the consolidation of port terminals in Tuas, despite initial downturns in global container shipping. Chee stressed that long-term investments ensure the nation’s competitiveness in the future, even if they carry initial risks.
Chee concluded by stressing that political courage and skill are required to implement sound policies and secure public support. Only through this virtuous circle can Singapore sustain economic growth and social well-being over the long run.
