Speech at Paradigma 2009 – "Going Beyond The Global Financial Crisis: Thoughts & Reflections"

Mr Gan Kim Yong, Minister , Anderson Junior College

Ms Susan Leong, Principal,
Anderson Junior College

Teachers and Students

Ladies and Gentlemen

1.   Good afternoon. It gives me great pleasure to join you at Paradigma 2009. First, let me congratulate Anderson Junior College for successfully organising this event. It provides an excellent platform for our students to discuss international events and developments as well as their implications for Singapore.

CHANGES IN THE GLOBAL LANDSCAPE

2.   The theme of today's seminar – "Going beyond the Global Financial Crisis" is a timely one. The global economic landscape is being reshaped. A few weeks ago, I attended the annual International Labour Organization Conference in Geneva and for the first time in its history, we held a jobs crisis summit to discuss the impact of the global recession on the labour market. From the discussions at the Conference and my conversations with government leaders, businessmen and unionists there, I sensed that they were very concerned about the future.

3.   Many developing countries were worried that as countries tackled their own economic crisis, they may introduce measures that are detrimental to long term global development. The developed countries could become increasingly more protectionist to keep jobs at home for their own people. As a result, there may be lower levels of investments in the developing countries, and consequently lower levels of trade. This will lead to a slower pace of development in the developing countries and the world. This will set us back many years and undermine the world's efforts of globalisation in the past decade.

4.   The impact of this crisis on Singapore will be quite different from previous crises we have faced. Singapore has experienced and rode out many economic crises, including the 1997-98 Asian Financial Crisis, the burst of the dot-com bubble in 2001-02, and SARS in 2003. Our strong foundations have enabled us to pull through these difficult times.

5.   What are these key factors of our success? They include visionary and credible leadership, skilled and adaptable workforce, as well as responsive business enterprises. These strengths, underlined by a strong and harmonious tripartite relationship, will continue to remain relevant as we seek to grow and create opportunities for our people during the recession and when the global economy recovers. Our challenge is how we can capitalise on opportunities in the new global environment and retool our strengths to position Singapore for the future.

KEEPING OUR STRENGTHS RELEVANT FOR THE LONG-TERM

Good Leadership

6.   Strong leadership has been a key factor in Singapore's success. In the Government, we are fortunate to have visionary pioneers who have put in place long term strategies and plans to transform Singapore and secure for us a place in the global arena. In the business domain, we have entrepreneurs who have built up internationally recognised companies like Singapore Airlines, SingTel, Keppel and many others. In the unions, without capable and progressive leaders, we would not have been able to move away from a confrontational approach to a unique model of constructive tripartite relations that has benefited workers and made Singapore an attractive investment location for investors. Strong leadership in the Government, private sector, and the unions, are crucial for us to survive this downturn as a team, and emerge stronger as a nation.

Strong People

7.   Our second success factor is our people. We were able to create economic miracles because we have hardworking, highly skilled and adaptable Singaporeans. Education and training was, and still remains, one of our top priorities. We provided world-class education to our people. We gave each of them an equal opportunity to develop and realise their potential. Recognising that not everyone learns the same way or has the same ability, we provided different education avenues and pathways. We created the Institute of Technical Education, polytechnics, and schools which specialise in Sports and Fine Arts as well as design and technology. We are now building our fourth university as well as the Singapore Institute of Applied Technology. All these efforts are aimed at providing our people with more opportunities for education. We have also stepped up Continuing Education and Training, or CET in short, to cater to working adults. This is important as education and training must not stop as soon as you start working. It should be a lifelong pursuit. As our economy undergoes restructuring, we will need to help our people acquire new skills so that they can take on new jobs. This way, we help them adapt to the changing landscape.

Conducive Environment

8.   The third success factor is our enterprises. We have brought in multi-national companies to help build our economy and allow us to be connected to the world. Our own market is small and we have to tap into the world market to fuel our growth. At the same time, we developed local enterprises that are globally competitive, such as the Singapore Airlines. We have also developed small and medium enterprises that are well-positioned in the region, such as Hyflux. MNCs and strong local companies help to enhance our resilience and they are not mutually exclusive.

9.   The strong and harmonious tripartite relationship between employers, unions, and the Government, was fundamental in ensuring trouble-free industrial relations. The confidence and trust built over the years have allowed us to resolve difficult issues such as retrenchment and unemployment in a constructive way that benefits both workers and employers.

SINGAPORE'S RESPONSE TO THE FINANCIAL CRISIS

Continuing Education and Training (CET)

10.   This crisis is a challenge as well as an opportunity. It is an opportunity for us to review our economic strategy, leverage on our strengths, and re-position ourselves for the future. What we do during the recession will determine how we emerge from it, whether we will be stronger or weaker. We have invested significantly in the area of CET so that workers at all levels can upgrade their skills. This downturn presents an excellent opportunity for building a core pipeline of local skilled workers in key industries and sectors such as the aerospace and biomedical sciences industries. We are helping these industries to recruit the trainees and ensure they are skills-ready when the economy recovers. More importantly, by building various training and career pathways in key industries, we are raising the quality of the Singapore workforce and give ourselves a competitive advantage.

11.   Singapore's only resource lies in our human capital. We will nurture our own to be the best and brightest. At the same time, we also need to attract and retain good people from all around the world. Hence, we should welcome foreigners in Singapore, just as how our own grandparents were welcomed when they came as immigrants into Singapore in search of a better life. If we turf out the foreigners during the recession, we will be sending a wrong signal. Many of them will not return when we need them again after the recession is over. We need to adopt a balanced approach. As we continue to allow calibrated access to foreign manpower, we must help Singaporeans cope with the challenges. This, we have done through the Skills Programme for Upgrading and Resilience, or SPUR.

OPPORTUNITIES AHEAD

12.   I mentioned in the beginning that our greatest challenge is not about this recession but our strategy in the long term beyond this crisis. We must make use of this opportunity to strengthen our capabilities. We have recently set up the Economic Strategies Committee for this purpose. The Committee has been tasked to look for new ways to grow the economy in a sustainable and inclusive way in the long run. We would look at what kind of industries we should attract and nurture, how we can tap on the Asian growth story, how we optimise the use of limited resources to support the economy, and how we equip our workers with the necessary skills to take up jobs we have created in these sectors. These are the issues that the Committee will be focusing on.

13.   If we are able to position our economy well, when the recovery occurs, we will be able to create good jobs for the broad majority of Singaporeans. We can then achieve sustained inclusive growth for Singapore in the long term.

RELEVANCE FOR SINGAPORE YOUTH

14.   Having shared these observations about how Singapore will stay relevant in the changing global landscape, you may be wondering what this will mean for you. It is important for you to appreciate the transformation that Singapore is going through, the challenges we face, and how we are tackling them. This is important as the process is a never-ending one. You will need to continue this process of adapting, re-positioning, and restructuring to ensure that Singapore continues to do well and remain relevant to the world. There are also specific things that you can do to prepare for these challenges.

Be a Lifelong Learner

15.   First, be a lifelong learner. This is not the first and will certainly not be the last downturn that Singapore will experience. Our economy will continue to evolve and change. Whichever course of study you decide to pursue at university, you must be prepared to continue your pursuit of knowledge and skills even after your graduation. This is the only way to stay current and relevant.

16.   The Singapore economy is very diversified and globally connected. There are many opportunities for you to develop your career in the field you are interested in, whether it is aerospace, IT, media and entertainment, law, finance, clean energy, tourism, public relations or even the voluntary sector! The bottomline is, you must adopt lifelong learning as a way of life and strive to upgrade your skills when you have the chance. This way, you can have access to many opportunities.

Capitalise on the Asian Growth Story

17.   Second, think about how you can capitalise on the Asian growth story. Asia is a dynamic growing region with abundant growth opportunities. This augurs well for Singapore as we are located right in the heart of Asia.

18.   Take time to learn about the different countries and cultures in this region. I was told that AJC students most recently participated in overseas trips, exchanges and immersion programmes to China, Indonesia, Korea, Malaysia, Thailand and Vietnam. This is very encouraging. Develop an interest in our neighbouring countries, their culture, their history, their people, and their economy. Establish relationships and network with their people. This will serve you well in future as you build your career.

Come Forward to Build Singapore Together

19.   You are leaders of Singapore's tomorrow. Some of you will be serving in the Government; some of you will be doing business; while some of you may be leaders in the community. Each one of you will have a hand in writing the next chapter of the Singapore story. You have an important role to play in forging national unity and bridging the divides among the people. The divide between Singaporeans and non-Singaporeans; between the more successful and less successful; and between races and religions. We must not take our achievements for granted. We need to make conscious efforts in this respect. In schools, you can reach out to your fellow Singaporeans as well as students from other countries. In the community, we look forward to some of you contributing your time and ideas to either help the less fortunate or to pursue a particular cause. What you do will determine the shape of the society Singapore will have in years to come.

CONCLUSION

20.   We have done well over the last four decades by many measures. We are now at a crossroad where the global economic order is being reshaped. Leverage on our strengths and build upon them to overcome evolving demands and challenges – your future and ours are in your hands.

21.   I wish all of you a very fruitful seminar ahead. Thank you.