Deputy Prime Minister Heng Swee Keat outlines strategies for economic resilience and global competitiveness.
As economic growth becomes increasingly difficult, Singapore must focus on restructuring its economy through transformation, innovation, and strengthening its role as a global-Asia hub, Deputy Prime Minister Heng Swee Keat emphasized in Parliament on Tuesday (27/02/2024).
During the second day of the Budget 2024 debate, 28 Members of Parliament discussed key economic concerns, including artificial intelligence (AI), reskilling, and employment policies. Heng highlighted Singapore’s pressing challenges: a maturing economy, a shrinking labor force, and rising protectionism worldwide. To overcome these issues, he proposed three major strategies.
The first strategy is sustained economic transformation. He stressed that businesses and workers must take ownership of change. While the government plays a vital role, collaboration between industries, unions, and enterprises will drive progress. He pointed to the Industry Transformation Maps as a key framework, with a comprehensive report expected soon.
The second focus is on fostering innovation. Singapore must enhance its research, innovation, and enterprise (RIE) ecosystem, ensuring that investments translate into commercial success. With an additional S$3 billion allocated for the 2025 RIE plan, the country aims to strengthen its capabilities in AI, sustainability, and advanced manufacturing. MPs suggested directing more funding toward small and medium-sized enterprises (SMEs) and technology-driven startups to maximize economic benefits.
The third priority is strengthening Singapore’s position as a global-Asia node. Heng underscored the country’s reputation as a trusted and neutral business hub, essential in a world of increasing economic uncertainty. He called for deeper collaborations between local and international partners, leveraging Singapore’s connectivity and credibility.
Beyond economic strategies, the Budget debate also addressed pressing social concerns. MPs raised issues such as workplace ageism, support for lower-income workers, and expanding unemployment assistance. There were also calls for improved social welfare policies, with suggestions to introduce annual reviews for support schemes to adjust for inflation.
Housing affordability and disability support were also discussed. One proposal was to extend the Parenthood Provisional Housing Scheme vouchers to two years instead of one, ensuring greater stability for young families awaiting public housing. Additionally, MPs advocated for better cross-sector collaboration in disability services to improve long-term care and accessibility.
As Singapore navigates a more challenging global landscape, its success will hinge on transformation, innovation, and strong partnerships. Heng reaffirmed the government’s commitment to supporting businesses and workers in adapting to new realities while maintaining the nation’s competitive edge.
