SINGAPORE: Amid the global uncertainties, it is a challenging time for Singapore which is trying to find an economic strategy that will work for the nation – not only for companies but also for the population and Singaporeans, said Prime Minister Lee Hsien Loong.
He was speaking on Friday (Feb 24) at a closed-door dialogue at Camp Sequoia, an annual technology summit of venture capital firm Sequoia Capital India. The event was attended by over 100 leading innovators and disrupters from more than 10 countries.
“We are doing our own think exercise,” said Mr Lee, referring to the recent report by the Committee on the Future Economy (CFE) and the Budget that was announced last Monday which sets out strategies for Singapore’s economy and society.
“None of them are rocket science. The key is whether or not you can make it happen. And to make it happen faster than others, execute and bring everybody on board and see that this is the right strategy, which will work and which will benefit everybody,” said Mr Lee.
This is Singapore’s approach as it navigates unchartered waters, said the Prime Minister, when asked about the veil of protectionism around the world, following Brexit and new policies in the United States.
“There is no alternative, we have to connect to the world,” said Mr Lee. “Why not build a wall around Singapore? It will be cheaper than a wall along the southern border (of the United States) but it would be more disastrous for us … We will starve to death … So we have to be open.”
Commenting on the Trans-Pacific Partnership, which the US pulled out of under the administration of President Donald Trump, Mr Lee said “it is a great pity and it is a setback,” adding that Singapore will continue to pursue free trade with the other partners. He expressed hope that “in time, the mood in America will change, become again more confident and more open.”
Mr Lee also highlighted the recommendation by the CFE to set up a Global Innovation Alliance that would push for more young Singaporeans to gain exposure overseas, especially in key regional markets, with the aim of establishing more start-ups here.
He acknowledged that the start-up scene “has livened up” over the years. “There are also a fair number of young people who have gone into the Valley in California, who have been caught the bug and the enthusiasm and are not only working in tech companies but come out and are doing their own start-ups in Silicon Valley,” said Mr Lee. “I think that is a very good sign, we would like more to do that.”
PM Lee and Mr Shailendra Singh, managing director of Sequoia Capital India. (Photo: MCI)
SINGAPORE’S SMART NATION DRIVE
Prime Minister Lee explained that start-ups and technology play an important role in Singapore’s Smart Nation initiative but “we really are not going as fast as we ought to,” he said. “We are looking at major projects which will make a big difference to the way Singapore is able to operate.”
For instance, he cited efforts to build a national sensor network which is able to pull various kinds of data into one integrated source for the country. There are also ideas for a national digital identity system through which Singaporeans can access services securely. “We have one for the Government services, SingPass, but it really does not do all the things we need it to do and it does not extend to private sector services. It does not even extend to hospitals which are restructured, semi-privatised,” said Mr Lee.
“We can use information technology, data and the whole system to apply that intelligence to our transport system – to be responsive, to adapt to demand, to cut down on empty routes and unnecessary services. We have not done that enough, the incentives have not been brought together,” he added.
SINGAPORE IN 20 YEARS
When asked what he thinks Singapore would look like 20 years from now, Mr Lee said there is still a lot of potential for the country to rebuild its physical landscape. He cited the example of Singapore’s ports in the south moving to the Tuas mega-port in the south-western side of the country. This would would free up space “six or seven times the size of the Marina Bay area” to develop a new city there.
In terms of society, he noted that the population will be completely be post-independence. “For them, if we are lucky and we have peace, the experience will have been stability and progress for all of their lives. The challenge would be for them to still have that drive to want to make things better, to want to be at the leading edge,” said Mr Lee.
One big worry for Singapore is the birth rate which is “too low”, said Mr Lee. “We can top up to a certain extent with new citizens, with permanent residents from overseas. But you must have a core which is transmitted from generation to generation, and transmitted by birth. It cannot all be somebody naturalised. Otherwise the essence of the country somehow disappears.”
But he acknowledged that the issue is one with no easy solution, despite continued efforts to boost the birth rate like introducing tax incentives, more paternity leave and pre-school facilities. “We are doing all the things which seem sensible to do,” he told the audience.
Ultimately, Mr Lee said it is the responsibility of the Government to make sure its people remain united. When asked about the “great amount of trust” among its citizens, Mr Lee said: “We have trust because the growth has benefited most people and people accept that this is something which is for them.”
He cautioned, however, that it is going to be harder to win trust now because growth will be slower. “We have to convince people, let us work together, at least we get this 2 to 3 per cent growth, it is good by any international standard.”
If Singaporeans were at odds, then the country would become a very unhappy and much less successful place, said Mr Lee. “It is our responsibility as a Government to have policies which will not let that happen.”
