Speech at Student Network Forum 2009, "Singapore's Economy – Where Do We Stand"

Mr Gan Kim Yong, Minister , University Cultural Centre (NUS)

Ladies & Gentlemen,

Good afternoon. It gives me great pleasure to join you today at this year's Student Network Forum.

2.   This annual forum provides a great opportunity for our students, both local and overseas to keep abreast of new developments within Singapore. It also gives me a chance to find out more about your interests and your concerns.

3.   This year's topic ‘Singapore's economy – where do we stand?' is timely and relevant. Most of you are still in school, some of you are about to graduate. Those of you studying overseas may be contemplating whether to remain where you are to build your career, or to return home.

4.   I hope today's forum will give you a better idea of economic developments in Singapore and the outlook in the future. With this knowledge, you will be able to assess what opportunities are available here and how you can leverage on Singapore's position as a global city in the heart of Asia.

STAYING RESILIENT IN UNCERTAIN TIMES

5.   I am sure many of you are concerned about the current recession. We've just announced the employment data yesterday. Like other countries, Singapore's economy has been affected by the global economic slowdown. On a seasonally-adjusted annualized basis, real GDP in the first half of this year registered a 6.7% decline compared to the first half last year. The GDP growth forecast for 2009 is expected to stay in the negative territory of between -4 to -6%. We are not out of the woods yet, Q3 and Q4 remain uncertain.

6.   On the more positive side, our labour market has proven to be relatively resilient. Singapore's unemployment rate for the first two quarters of 2009 stood at 3.3%, much lower than that in many other advanced countries such as the US, Germany and the UK. In the US, the unemployment rate for June was 9.5% compared to Singapore's 3.3%. This did not happen by chance.

7.   We wasted no time in putting in place bold new measures to address the impact of the recession. In January this year, the Government unveiled a $20.5 billion Resilience Package. The bulk of the package went to a Jobs Credit scheme which helps employers lower the cost of their local employees so as to keep their jobs, and the Skills Programme for Upgrading and Resilience (SPUR) which provides opportunities for worker training and upgrading during the downturn and helps employers reduce the wage cost of these workers.

8.   As we deal with the downturn, we are also preparing for the upturn. The global landscape will be quite different after the recession. There may be a need for us to fine tune and change our strategy. For this reason, the Government has recently convened a high-level Economic Strategies Committee (ESC) to recommend strategies to develop Singapore into a leading global city in Asia. We will do so by seizing new opportunities, by developing a depth of local and foreign talent and superior capabilities, while optimizing the use of our scarce resources. The ESC will put forward its key recommendations by January 2010 and release its full report by the middle of next year.

BUILDING A GLOBALLY COMPETITIVE WORKFORCE

9.   We must continue to focus on building our capabilities for the long term, and develop our most valuable asset – our human capital and workforce. Over the years, we have invested heavily in the education and skills of our people, so that we can develop and stretch the potential of each and every one here. We have complemented this by welcoming global talent from around the world. Our long-term manpower strategy is to develop a globally competitive workforce that is better-skilled, more resilient and more productive than our competitors. This will ensure Singapore remains an attractive place for investment, which in turn will create good jobs for Singaporeans.

10.   We can be confident about the future as Singapore remains an attractive place for investment. Earlier this week, Rolls-Royce announced a new plant here at Seletar. This is its first facility outside England to make engine fan blades for large aircraft, right here at Seletar. This will create about 500 jobs. This brings the total investment by Rolls-Royce into the aerospace park at Seletar to some $700 million. The company has also announced earlier that it is moving its global headquarters of its marine business from London to Singapore.

11.   In addition, Singapore's strategic location at the heart of Asia allows us to tap on the growing markets of China and India which offers many opportunities. Together, they have a total population of about 2.5 billion people, which is more than one-third of the world's population.

 

12.   Many CEOs of multi-national companies have shared with me that another reason they invest in Singapore is also due to our high quality and globally competitive workforce. Today, 26% of our employed residents has a university degree, but with the building of a fourth university, we expect the percentage to increase to 30% by 2015. Already 38% of our employed residents has at least tertiary-level education, which is comparable to that in Japan and the United States, and higher than other developed countries such as Australia, Germany and the United Kingdom. We want Singapore to be a place where talented individuals can develop their potential as long as they are willing to seize opportunities. We will enhance our infrastructure for talent to make Singapore “the” global city to live in, grow their careers and provide a home for them to fulfill their aspirations.

MAKING SINGAPORE A GLOBAL CITY & HOME

13.   We are making good progress to transform Singapore into a global city and home for all. Good, affordable housing – we have it. Safe streets - check. Efficient and accessible public transport - check. Good quality and affordable healthcare - check. And family-friendly spaces - check. The opening of the Integrated Resorts will bring with it flagship stores for internationally-renowned fashion brands as well as fine dining restaurants helmed by Michelin-starred chefs. We are also proud to host the first-ever night race in Formula One Grand Prix, the inaugural Asian Youth Games this year and the Youth Olympic Games next year. These events have already added much colour and vibrancy to Singapore.

14.   We are also looking into areas such as arts, entertainment, fashion, F&B, health and wellness, and sports. We are committed to examine how Singapore can better position ourselves in these aspects to create a world-class living environment comparable to established global cities such as London, New York and Paris.

15.   The question is – will this be enough to attract talent, local and foreign, to stay here? Two in three Singaporean students from the 1996-1999 GCE A-level graduating cohorts who studied overseas and had no scholarship bond have chosen to return home to build their careers and families here. Mr Torance Khoo was one of them. Upon graduation from the University of Illinois – Urbana Champaign, he joined KPMG in San Francisco. After one year, he felt that he would have better prospects and opportunities by returning to Asia. So he left San Francisco and came home. He is now happily settled in Singapore as an Equity Trader with AEW Asia.

16.   Jean Chia is another Singaporean who chose to return to Singapore. She studied at the London School of Economics and graduated with a Bachelor of Science in Economics in 1995. She worked in London and Hong Kong as an investment banker after that. In 1998, she responded to the call of family duty and returned home to help with the family business. Jean is now living in Singapore with her two young boys. She is also the Managing Director of PICO Art International Pte Ltd.

17.   We hope to see more overseas Singaporeans like both Torance and Jean, who eventually return to Singapore to build their families and careers.

ENGAGING OVERSEAS SINGAPOREANS

18.   Even if you decide not to return for the time being, as overseas Singaporeans – you are global citizens and part of our larger Singaporean family. The Government's outreach efforts to overseas Singaporeans will continue. For instance, the Contact Singapore website helps overseas Singaporeans keep abreast with industry news and developments, as well as career opportunities. It also has dedicated microsites about career immersion and training programmes which are available to help graduating Singaporean students. These programmes are offered by employers such as GIC, Standard Chartered Bank and Lucasfilm Animation Singapore.

19.   In addition, the Overseas Singaporean web portal highlights key news in Singapore and provides a forum for overseas Singaporeans residing in the same area to get connected. I am also happy to share that just over three months ago, the Overseas Singaporean Unit held its 3rd Singapore Day in London. The first two were held in New York and Melbourne. Singapore Day has become a trademark event that brings together numerous Overseas Singaporeans to dig into familiar Singapore culinary delights such as chicken rice, nasi lemak and roti prata, while updating each other on changes back home and catching up with fellow Singaporeans.

20.   While these outreach efforts will continue through Contact Singapore and the OSU, they will not succeed if this is just a one-way street. I urge you to continue to stay connected and engaged online as well through events like Singapore Day. This way, you can remain part of Singapore, and Singapore will remain part of you.

21.   I look forward to having an engaging conversation with you during the panel discussion later. Thank you.