Singapore must stay open and connected even as developed countries across the world turn inwards, Minister of Trade and Industry (Trade) Lim Hng Kiang said on Friday (March 3), as he outlined a number of strategies aimed at helping companies tap into overseas opportunities.

“Trade and external demand are key drivers of our economy, accounting for two-thirds of our gross domestic product.

“Small and open economies like Singapore are especially vulnerable to global developments, but our external linkages can also make us more resilient,” he said during the Committee of Supply debate for the Ministry of Trade and Industry’s budget.

He was replying to a question by Mr Liang Eng Hwa (MP for Holland-Bukit Timah GRC) about the rise of anti-globalisation sentiment across the world.

“Our trade connections across the world have enabled our companies to access new markets and cutting-edge technology, and have created good jobs for Singaporeans,” he added.

International Enterprise Singapore’s 2016 internationalisation survey showed that companies’ overseas revenue grew 4.2 per cent, compared to total revenue growth of 1.3 per cent. Moreover, about 60 per cent of jobs created through overseas growth are for professionals, managers, executives and technicians.

Mr Lim also highlighted the importance of leveraging on trade deals, including the network of 21 free-trade agreements and economic partnership agreements with 32 trading partners, which helped local companies reap tariff savings of over S$900 million in 2015.

He cited the example of air-conditioner maker Trends Home Electrical, a homegrown SME which saved 30 per cent in tariff payments through the Asean Trade in Goods Agreement when exporting to Malaysia. Food manufacturer Tee Yih Jia was able to tap on the free-trade agreement between Singapore and the Gulf Co-operation Council by having its products exported to GCC countries, which recognise the Islamic Religious Council of Singapore’s (Muis) halal certification process.

Under the Association of Southeast Asian Nations (Asean) Economic Community, member states are looking at the harmonisation and mutual recognition of standards across a wide range of sectors, including automotives, cosmetics and medical devices — and aligning them with international standards where possible, 
Mr Lim said.

Singapore is also working with Asean member states to improve trade facilitation through the Asean-wide Self-Certification regime and the Asean Single Window. These initiatives will also reduce the administrative burden and cost to traders.

In addition, Singapore will press on with efforts for greater regional connectivity through the Regional Comprehensive Economic Partnership (RCEP), he added. The RCEP will enable companies to more easily source from, and export to, regional markets, and reduce business costs by simplifying trading rules and procedures.

Mr Lim also stressed the importance of deepening Singapore’s linkages at the provincial, states and cities level. “We can do so through bilateral platforms and government-to-government (G2G) projects. In China, Singapore companies have made inroads through our seven provincial business councils. Our third G2G project, the Chongqing Connectivity Initiative (CCI), will also enable us to engage the provinces in Western China,” he said.

MINISTRY OF TRADE AND INDUSTRY:

S$3.79 billion projected spending this financial year, an increase of S$612.03 million or 19.3% from the previous year

•Introduce flexibility in land-zoning policies in response to industry trends, to be piloted by JTC at Woodlands North Coast.

•Enhance environment to allow more innovation and risk-taking, especially in the medtech sector.

•A*Star will transform itself and focus on multi-disciplinary collaborations and partnerships with companies, to generate better economic outcomes from R&D efforts.

•Create a national intellectual property protocol to provide companies with a clear and consistent framework to access publicly funded IP.

•Provide opportunities for SMEs to develop, test-bed and validate new solutions in strategic growth areas, with the Government as their reference customer.

•Enhance the Internationalisation Finance Scheme to improve access to private cross-border project financing and help Singapore companies take on more overseas infrastructure projects in the region.

•Develop the clean- energy industry and prepare the electricity grid to accommodate 1GW of solar energy.

Source:
courtesy of TODAY

by Today

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