Message From Minister For Trade And Industry

Last year was an exceptional one for Singapore. Our GDP grew by a record 14.5 per cent. We recovered strongly from the 2009 downturn because the global economy improved and we had positioned ourselves well to weather the economic crisis and be ready to capitalise on the economic upswing. Measures such as the Special Risk-Sharing Initiative and the Jobs Credit Scheme helped companies tide over the recession and save jobs. By preserving our capabilities and competitiveness, we were able to stage a quick rebound when external demand and trade flows recovered.

This year, the economy is projected to grow by 4 to 6 per cent. For the medium-term, our underlying growth potential is 3 to 5 per cent per annum – a healthy range for a country in our stage of development. Emerging Asia is expected to become a key growth engine, alongside the G3 economies. According to International Monetary Fund projections, China alone will account for a third of global growth by 2015. Asia’s rise presents growth opportunities for Singapore.

A vibrant and competitive manufacturing sector will enable us to capitalise on the growth of Asia. A strong manufacturing base also creates good jobs and generates demand for supporting services such as logistics, finance, transport and professional services.

Our manufacturing sector must therefore move up the value chain. We must continue to deepen our manufacturing capabilities by building on existing strengths and branching into new areas of high-tech manufacturing, such as plastic electronics, sophisticated aircraft engines, niche specialty chemicals and biologics. Our manufacturers must also move beyond the production of goods to undertake other high value-added activities, including R&D, design, intellectual property management, supply-chain functions, marketing and post-sales support.

These measures will enable us to achieve a productivity growth target of 2 to 3 per cent each year and lay the foundation for long-term sustainable growth for our companies. To support our companies in their productivity efforts, various productivity measures have been introduced. Recently, we enhanced the Productivity and Innovation Credit (PIC) scheme to encourage companies to invest in productivity and innovation. Many of these initiatives are being rolled out in partnership with trade and business associations such as the Singapore Manufacturers’ Federation. The government is also working with these associations to formulate robust and effective productivity plans for the various sectors. I urge our manufacturers to capitalise on the enhanced PIC, and the many other productivity schemes available.

To conclude, I congratulate the Singapore Manufacturers’ Federation for its efforts in compiling Tradelink 2011. It is a useful showcase of the products and services that our manufacturers offer. It enables our companies to link up with one another, and opens up even more business opportunities both within and outside Singapore.

Back to Messages