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Straits Times
an hour ago
- Straits Times
More support for sectors and workers vulnerable to tech disruptions, global competition
Sign up now: Get ST's newsletters delivered to your inbox SINGAPORE – Singapore will step up support for businesses and workers in sectors that are more vulnerable to technological disruptions and global competition, such as general manufacturing, retail and logistics. This will be a key area of focus for one of the new committees formed to manage the impact of restructuring under the Economic Strategy Review, which replaces the third work stream of the Singapore Economic Resilience Taskforce – set up in April to review longer-term strategies for local firms amid tariff-induced trade tensions. At a press conference on Aug 4, Minister of State for Home Affairs and Social and Family Development Goh Pei Ming said the Government will strengthen support for companies and help them tap new opportunities from global economic trends and mega projects. 'We will focus on sectors that are likely to face greater cost pressures, technological disruptions and global competition, and therefore be in greater need of restructuring,' he said, adding that these sectors will include general manufacturing, retail and logistics. He said the Government will also proactively support workers who are more susceptible to disruptions, such as professionals, managers and executives whose roles are affected by artificial intelligence (AI), and rank-and-file workers from sectors that are undergoing transformation and restructuring. He is co-chairing this committee with Minister of State for Defence and National Trades Union Congress deputy secretary-general Desmond Choo. But Mr Goh emphasised that many new opportunities will surface as Singapore embarks on large development projects, adopts new technologies and pursues energy transition. 'Businesses in these sectors will need to adapt, to innovate, to seize these new opportunities, and the Government will do our part and support those who are keen and have good ideas,' he said. He added that more pathways will also be developed for workers in less secure jobs to find roles with better job prospects. Social safety nets and assistance will be enhanced to help displaced workers return to gainful employment. 'We call on employers and workers to be more open to new learning and personal growth along this journey,' he said. Meanwhile, Acting Minister for Culture, Community and Youth David Neo, who co-chairs a committee on human capital with Senior Minister of State for Manpower and Health Koh Poh Koon, noted that the Government launched SkillsFuture a decade ago to upskill and reskill the workforce. He said the initiative has delivered good results as Singapore has sustained more than 2 per cent real wage growth year on year after accounting for inflation. 'Going forward, we will study ways to strengthen this link between career training as well as our career outcomes and continue to sustain this real wage growth,' he said. Mr Neo, who is also Senior Minister of State for Education, said the Government will also develop a more effective career employment service ecosystem to help Singaporeans make better career choices. 'We want to equip our workforce for future trends, to seize new opportunities and to manage risks from structural drivers affecting the economy, such as dual economic fragmentation, artificial intelligence and climate change,' he said. 'We will look at strategies to prepare workers in emerging markets and to equip them with AI skills for the workplace and to take up new jobs that will arise in our new green economy.' Besides helping workers, efforts to groom local entrepreneurs will continue. Minister of State for Trade and Industry Alvin Tan, who co-chairs the committee on entrepreneurship with Minister of State for Manpower and Culture, Community and Youth Dinesh Vasu Dash, said global competition for entrepreneurial talent, funding and ideas is intensifying. 'We must move faster and do better to ensure Singapore remains the most attractive place for founders with big ideas to start and scale their businesses,' he said. Mr Tan, who is also Minister of State for National Development, added that the Government will strengthen the Singapore core in entrepreneurship while continuing to welcome top talent from abroad. 'We must also redouble our efforts to nurture a new generation of Singapore-based entrepreneurs with the ambition, temerity and resilience to start and sustain new ventures,' he said. When asked how Singapore can position itself as a start-up hub given the rising business costs and tight labour market here, Mr Dinesh said the committee will look at creating a friendly infrastructural set-up, developing talent and adjusting regulations. 'We have about 30 unicorns in Singapore, and it covers about US$5 billion (S$6.4 billion) in terms of venture capital flows,' he said. Unicorns refer to start-ups valued at more than US$1 billion. 'We think that is an area that could potentially increase and provide a further addition to the Singapore economy, creating good jobs for people and better career pathways as well,' he said.
AsiaOne
3 hours ago
- AsiaOne
'Important to take a longer term view': DPM Gan announces 5 new committees to strengthen Singapore's economic relevance, Singapore News
The Government will have five new committees to strengthen Singapore's economic relevance amid geopolitical uncertainties and technological disruptions. The new committees were announced by Deputy Prime Minister Gan Kim Yong at a press conference on Monday (Aug 4), where he detailed Singapore's Economic Strategy Review (ESR). The ESR, he said, will chart a "forward-looking economic blueprint" to sharpen Singapore's economic competitiveness and deepen its economic resilience. This comes amid major disruptions to the "rules-based multilateral trading system" caused by US tariffs, which make it "important to take a longer term view". DPM Gan, who is the Minister for Trade and Industry and the chairman of SERT, said that the third workstream of SERT — aimed at developing longer-term strategies and responses to transform businesses and support the workforce — will be replaced by the five new committees. SERT stands for the Singapore Economic Resilience Taskforce. The five committees will develop longer-term strategies in the following areas: Global competitiveness Technology and Innovation Entrepreneurship Human capital Managing impact of restructuring Each committee, co-chaired by two political office holders, will also have members from the private sector, unions and other relevant stakeholders. Acting Minister for Transport Jeffrey Siow, who is part of the committee focused on global competitiveness, said that a major focus will be to "strengthen Singapore's competitive advantage" and strengthen its reputation as a trusted and reliable investment destination. He also pointed out that one of their key areas of focus will be leveraging on Artificial Intelligence (AI) to benefit businesses and workers. "AI isn't just for tech giants, it is for every Singaporean tomorrow," said Jasmin Lau, Minister of State for the Ministry of Digital Development & Information and the Ministry of Education. Her committee aims to make technology and AI intensive, extensive and inclusive for all. The ESR will build on past economic reviews that have laid strong foundations for Singapore's growth, while considering new ideas and approaches to sharpen the country's economic competitiveness. "We are definitely not abandoning the old strategies that we have. We are really building on the very strong foundation and fundamentals that we have accumulated over the years," added Siow, pointing out that the new committees will adapt previous strategies to the changed global environment. According to DPM Gan, the ESR will engage widely with businesses, workers, and relevant stakeholders to gather feedback and ideas over the next few months. The recommendations are set to be published in a review mid-2026. "Even as we manage the immediate uncertainties, we must start planning for the longer term to position our economy, our businesses and our workers so that they are able to adapt to the new economic landscape," said DPM Gan. 10% baseline tariffs US President Donald Trump had released a new list of tariff rates on imports from global trading partners on Aug 1, which are "pretty much set", according to Trade Representative Jamieson Greer. The levies range from 10 to 41 per cent, with Singapore still facing the baseline rate of 10 per cent — a non-negotiable rate based on previous discussions with the US, according to DPM Gan. Aggregate US tariff rates will rise from two per cent to around 15 per cent or higher with the new levies, he said. DPM Gan also warned of "significant uncertainties" that remain, including ongoing discussions between the US and countries like India and China, in addition to sectoral tariffs that are still pending. "Details on how these tariffs will be implemented are still pending, and the US may also announce further sectoral tariffs, such as pharmaceutical, semiconductors, as well as aerospace in time to come," DPM Gan said, adding that Singapore is still in discussion with the US regarding potential concessions. [[nid:720005]]
CNA
3 hours ago
- CNA
Singapore launches economic strategy review to stay competitive amid global, tech shifts
SINGAPORE: Singapore announced on Monday (Aug 4) that it will undertake a review of its economic strategy amid structural shifts, including geopolitical realignments and technological disruptions. The review will chart an economic blueprint aimed at keeping the country globally competitive in the long term, with good opportunities for businesses and workers, said Deputy Prime Minister Gan Kim Yong at a press conference. The new review will build on earlier efforts and incorporate fresh ideas to sharpen the country's economic competitiveness and resilience, said Mr Gan, who is also trade and industry minister and chair of the Singapore Economic Resilience Taskforce. The task force was formed in April to deal with the impact of tariffs imposed by the United States. It comprises three work streams – looking at assessing how businesses are being affected and sharing information on what schemes are available, short-term support and developing additional measures if needed, as well as long-term strategies to transform businesses and workers. The new economic strategy review will replace the third work stream on long-term planning. The government said the review process will involve wide engagement with businesses, workers and other stakeholders over the coming months. Mr Gan said the five committees hope to provide an update of their work and some key recommendations by 'early next year', and publish a final report by mid-2026. This announcement comes days after US President Donald Trump announced a slew of updated tariffs, including a 10 per cent global minimum and levies ranging from 10 to 41 per cent for 69 countries, ahead of an original deadline on Aug 1. US also said it will levy a 40 per cent tariff on so-called transshipments. The new US tariff directive will take effect on Aug 7. Singapore faces the baseline 10 per cent tariff. Mr Gan said the latest tariffs will 'raise the aggregate US tariff rates from above 2 per cent at the start of the year to about 15 per cent or higher'. 'Significant uncertainties' remain even with the latest announcement, he cautioned, citing how negotiations between the US and several major countries, including China and India, are still ongoing. There is also the possibility of further US tariffs aimed at specific sectors, such as pharmaceuticals, semiconductors and aerospace. Meanwhile, it remains unknown how supply chains will shift as companies factor the latest tariffs into their calculations. 'There will be long-term implications on the multilateral rules-based trading model that will inevitably affect Singapore and the rest of the world. We intend to continue to engage the US administration on these matters,' said Mr Gan. Singapore will also step up its engagements with businesses to find out the impact of the latest developments. The taskforce had thus far announced a new Business Adaptation Grant to help firms adapt to the new tariff environment, and it will continue to work closely with the Singapore Business Federation to study if additional measures are needed. The government is also keeping a close eye on how workers might be impacted, and will work with the Singapore National Employers Federation and National Trades Union Congress (NTUC) to step up support when needed. As these near-term measures are being rolled out, Singapore must also start planning for the long term to protect its economy, businesses and workers, which is why it is embarking on the economic strategy review, said Mr Gan. Asked how the latest review will build on similar economic reviews done previously, such as the Committee on the Future Economy's (CFE) report issued in 2017, Mr Gan said the challenges faced by Singapore have changed over the years. Currently, the country faces a 'significant long-term challenge' with the global environment set to face rapid changes and further uncertainties due to the US tariffs. 'There are a lot of unknowns going forward but at the same time, there are also opportunities and possibilities. That's why it is important for us to take a fresh look at our strategy,' said Mr Gan. That said, the country also has built up strong fundamentals, such as high-quality infrastructure and a highly-skilled workforce. 'All these are very important strengths that we have built up over the last few decades, and it is also important to see how we can leverage on that to continue to create new opportunities for Singapore and Singaporeans,' Mr Gan said. Echoing that, Acting Transport Minister Jeffrey Siow, who is heading one of the five committees, said the country is 'definitely not abandoning' existing core strategies and is looking to build on the strong foundation that the country has built over the years. FIVE FOCUS AREAS The latest economic strategy review will be driven by five committees, each co-chaired by two political office holders and involving stakeholders from the private sector, unions and other organisations. The first committee will focus on strengthening Singapore's global competitiveness. Its remit includes improving the country's value proposition to international investors, building a strong base of globally active Singapore firms and securing its status as a hub for goods, capital, people, data and energy. It will be co-chaired by Mr Siow and Senior Minister of State for Trade and Industry, as well as Culture, Community and Youth Low Yen Ling. The second committee will explore ways to leverage technology and innovation to drive broad-based economic growth. These include catalysing opportunities through technologies such as artificial intelligence and accelerating AI adoption across the economy. This will be co-headed by Minister of State for Digital Development and Information and Education Jasmin Lau and Senior Parliamentary Secretary for Sustainability and Environment and Culture, Community and Youth Goh Hanyan. A third committee will focus on strengthening Singapore's startup and entrepreneurship ecosystem. It is co-chaired by Minister of State for Trade and Industry and National Development Alvin Tan and Minister of State for Manpower, as well as Culture, Community and Youth, Dinesh Vasu Dash. The fourth committee, led by Acting Minister for Culture, Community and Youth David Neo and Senior Minister of State for Manpower and Health Koh Poh Koon, will focus on equipping workers with relevant skills. The fifth committee will address the impact of restructuring. It will propose ways to support business transformation, help affected workers transition into better roles, and strengthen system-wide enablers and safety nets to aid re-employment. This group will be co-led by Minister of State for Home Affairs and Social and Family Development Goh Pei Ming and Minister of State for Defence and Deputy Secretary-General of the National Trades Union Congress Desmond Choo. The government said the review process will involve wide engagement with businesses, workers and other stakeholders over the coming months.
