Speech by Acting Minister for Transport and Senior Minister of State for Finance Mr Jeffrey Siow at the Future of Transport Motion

Mr Deputy Speaker

1.          Let me begin by first thanking Ms Tin Pei Ling and the members of her Government Parliamentary Committee for Transport, who have filed this important motion. I also thank Members of this Chamber who have spoken so far for the wide range of ideas that have been expressed. While we may not be able to respond to every idea individually, the Ministry of Transport will take back all of your suggestions and consider them seriously.

2.          Now typically when I am at this podium, I’m speaking about local transport issues. And no doubt I will continue to do that, such is the life of the Minister for Transport.

3.          Local issues are important. We recognise that transport touches the lives of every Singaporean – whether one drives, walks, cycles or rides. We have discussed local transport issues extensively in this Chamber this past year, and we will continue to do so. Today, Ms Tin and colleagues are asking us a different question – to consider the economic impact of transport, which cuts to the heart of how our country makes its living in a changed world.

4.          Transport is one of the largest economic sectors. It contributes about a tenth of our GDP, and 7% of our jobs – good, steady, high-paying jobs, held by Singaporeans who keep people and goods moving, by air, land, and sea. Every hour, every day.

5.          But the worth of this sector goes far beyond GDP and jobs.

a.          Transport is the foundation on which our economy is built.

b.          Where others might have seen a sleepy fishing village, the British looked at our deep harbour and saw a gateway to seaborne trade.

c.          Today, our world-class airport and seaport connect Singapore to every major market on the planet. Through them flows trade, many times the size of our own economy.

d.          And this foundation is how Singapore was able to build everything else – an advanced manufacturing base, a high-value services hub, and a young but growing engine for start-ups and enterprises.  

6.          At this year's Committee of Supply, I set out three directions for our transport sector: to be globally-oriented, future-focused, and people-centric. This remains our north star, and it is how I will frame my response to the motion. I will focus on MOT’s overall strategies, and SMS Sun Xueling and MOS Baey Yam Keng will share more details on specific initiatives afterwards. 

Globally-Oriented

7.          Let me begin with the first direction: that the transport sector must be globally-oriented. As more than a few Members have already observed, competing in today’s world has become far more challenging.

a.          Just this year, the Strait of Hormuz was closed for almost four months; upending global energy and supply chains. And the disruption is not fully behind us.

b.          There were even suggestions from others that countries could levy tolls for passage – as though the right of transit passage guaranteed under the UN Convention on the Law of the Sea simply did not exist.

8.          For most countries, these are distant headlines. For Singapore, this is existential. We depend on a rules-based international order – one where every nation, large or small, operates on the same terms.

9.          And this is why Singapore spoke up on Hormuz. Because if the rules can be broken there, we worry they can be broken in the Straits of Malacca and Singapore too. And what is done on the seas, can also be done in the skies above us. For a country that lives by its connections, these rules are a matter of survival.

10.          We know the world has changed. In November last year, I was in London for the Assembly of the International Maritime Organization (IMO).

11.          Meeting after meeting, one topic was raised – the IMO Net-Zero Framework.

a.          Singapore and many others had laboured over this sustainability framework for years, and it originally had the support of the majority. But at the eleventh hour, the vote was suddenly derailed by intense lobbying from a small number of countries.

b.          What troubled people was not so much the outcome – that the vote would be delayed for a year.

c.          It was a deeper question – does might make right?

d.          If a few powerful countries could arm-twist others and override a deal that was thought to be settled, then what does this mean for the future of the rules-based international order. What does it mean for countries that depend on this to prosper?

12.          One might draw from this a bleak conclusion – that international organisations like the IMO have lost relevance. This is not our view.

a.          When institutions come under strain, that is precisely the moment a country like ours must show up: to bridge divides, and forge consensus on what matters.

b.          Singapore speaks our mind – not only on our own interests, but on what we believe to be right for the world.

c.          And other countries listen. In the Council elections for the IMO, and for the International Civil Aviation Organization last year, Singapore received the highest number of votes in our category.

d.          We may be a small country, but we are not a spectator. So, I agree with Ms Tin Pei Ling and Mr Sharael Taha that we must continue to strengthen Singapore's role as a global thought leader in transport. Singapore must do our part to shape global rules and standards so that they continue to work for small countries like ours.  

13.          Our presence in international organisations is only one part of our global orientation. Our connections are the other.

a.          Singapore has built a web of agreements around the world – Air Services Agreements, Green and Digital Shipping Corridors, and many more.

b.          These agreements open doors. They help explain why our airport has flights to over 170 cities today, and our seaports have connections to more than 600 other locations.

c.          This is why our transport companies like PSA, CAG, SATS, and SIA are able to grow overseas, and operate global networks.

d.          We will deepen these links and build new ones with like-minded partners – bilaterally and multilaterally. This includes new initiatives with our ASEAN neighbours:

i.          To make cross-border travel more seamless;

ii.          To improve the efficiency and sustainability of our regional ports; and

iii.          To enhance regional air navigation and liberalise air services within and beyond ASEAN.

e.          Next year, when Singapore takes on the ASEAN Chairmanship, we will have the opportunity to advance these projects and more to bring our region closer together.

14.          Is our current approach for global connectivity enough for this new world? The Economic Strategy Review recently released its recommendations. The Global Competitiveness Committee, which I co-chair with SMS Low Yen Ling, concluded that Singapore must further strengthen our role as a connected global hub.

a.           Now, you may expect the Transport Minister to say that the answer is to build bigger and better airports and seaports. That is still part of the plan, in case I inadvertently give my colleagues at the Ministry of Finance the wrong impression.

b.           But several Members have noted that connectivity today no longer rests on physical infrastructure alone. And I agree. Supply chains are becoming more fragmented, and more distributed. If Singapore is merely a place through which flows happen to pass, then one day those flows will simply pass us by.

15.          And that is why our strategy is not to rely on physical connectivity alone but to build a whole ecosystem that the industry is reliant on.

a.           Ms Poh Li San already explained eloquently how our ecosystem approach works around our airport. In maritime, we have the same thing around our port. We have built a maritime industry ecosystem – ship financing, marine insurance, maritime law, arbitration. Ms Goh Sze Kee, as an industry insider, vividly described this earlier in her speech, much better than I could.

b.           And all these is integrated with our supply chain and logistics ecosystem, which includes air freight forwarding and inland transport and logistics.

c.           It has taken us decades of effort to build this ecosystem. Now, it is a strategic advantage that keeps Singapore, Tuas Port, and PSA competitive and relevant, even as the physical flows of trade shift around us.

16.          Mr Gerald Giam and Mr Kenneth Tiong spoke about Maersk.

a.           Coincidentally, the CEO of Maersk, Vincent Clerc, called on PM and I just two weeks ago.

b.           Now, Maersk is the second largest shipping line in the world by container volume.  It recognises the value of our broader maritime and logistics ecosystem. It may have moved its transshipment operations to Tanjung Pelepas in the year 2000, but its Asian headquarters remain in Singapore. In fact, Maersk manages its entire Asia and Middle East portfolio of port terminals, including Tanjung Pelepas, from Singapore.

c.           Even when its cargo does not physically pass through our waters, the decisions about that cargo may still be made here, and we are able to capture value from it.

Future-focused

17.          As supply chains become more digital, connectivity will increasingly depend on technology. So this brings me to the second part of our strategy, which is to be future-focused.

18.          Members have spoken a great deal about frontier technology, including AI.

a.           Colleagues are correct to dwell on this topic. AI will profoundly reshape our economy and our society, in ways we cannot yet fully understand or imagine.

b.           Like the Internet, we can be certain that AI will change our lives, long before we can say exactly how. 30 years ago, when web browsers started coming into public use, few of us would be prescient enough to have imagined that banking, shopping, and even ride-hailing would one day all run through the Internet.

c.           In the same way, we cannot predict precisely the shape of how AI will change our lives. But we must prepare for it now, to stay ahead.

19.          Transport is no exception.   

a.           In the age of AI, it is even more important to have clarity on what makes Singapore successful in the first place.

b.           Shippers and travellers choose Singapore not because we have the best proprietary technologies.

c.           But because we are more efficient, we are more connected, and we are more reliable than the alternatives.

d.           Technology is only one ingredient in our secret sauce.

20.          Our approach will not be to adopt AI for its own sake, but we will do so with intention, clarity and on our own terms.

a.           The National AI Council, chaired by the Prime Minister, drives our efforts on AI.

b.           I lead the AI Mission on Connectivity.

c.           These AI Missions are industry-centric by design. We begin with a real problem, drawn from the industry, and we ask what AI can do about it.

d.           This approach suits the transport sector especially well, because our companies like PSA, SIA, and SATS are already at the frontier — and we have a real opportunity to grow them into global champions in their own fields.

21.          I am grateful to the Transport GPC Members who crafted this motion for their thoughtful reference to frontier technologies. Ms Tin in particular suggested that we beef up R&D to benefit Singapore's growth. I am happy to share with Members that MOT plans to invest $800 million over the next five years on transport research and innovation, to support efforts to develop frontier technology. This will include projects drawn from the AI Connectivity Mission.

a.           $800 million is more than double the funding over the last five years.

b.           We will use these funds to back ideas that could completely transform how transport operates today.

i.           For instance, imagine a fully automated MRT depot that maintains and repairs our trains more efficiently;

 ii.          Or an AI-enabled air traffic management system that increases our regional airspace capacity to accommodate the needs of all the airports around us;

iii.          Or a smart port network that makes decisions with shipping lines on how to shift containers on a real-time basis, using tools like digital twins, which Mr Jackson Lam and Ms Tin both spoke about. Ms Tin will be pleased to know that the MOT team does intend to explore how we can expand this to an intermodal concept across our air, land, and sea networks.

c.           If these projects succeed in the next decade, Singapore will still remain one of the world’s major transport and logistics hubs, but it will look completely different.

People-centric

22.          That brings me to the third part of our strategy, which is that transport must be people-centric. Many Members have emphasised that technology is not about machines but about people, and I fully agree. On the economic front, it is about supporting our workers – making their jobs easier, more productive, and more skilled.

23.          The transport sector is growing. Terminal 5 will raise Changi's capacity by more than 50%. Tuas Port will bring us up from 45 million TEUs today, to 65 million TEUs in future. There will be many more jobs than workers available, but we will not be able to meet this growth by hiring 50% more.  

24.          During Ramadan this year, I broke fast with some workers at Changi Airport.

25.          One was a team of air traffic controllers. They shared with me how demanding their jobs are – watching several screens at once, deciding in real time what to tell each aircraft, making certain that no instruction conflicts with another, including with counterparts in neighbouring countries. It is a job of extraordinary demand and a job with no margin for error.

26.          I met another group from SATS. Now, SATS workers are the backbone of our airport operations. They are the reason why your baggage comes out so soon after you land. When we are at the airport, we walk on soft carpets, enjoy air-conditioning, listen to calming ambient music. But behind the scenes, there’s an army of SATS workers doing backbreaking work, amid the heat and the noise, to move your baggage from the tarmac to the belt.

27.         These are exactly the types of work that AI can lighten:

a.           For the air traffic controller: AI can put the full picture together, so that the controller is free to do only what only a human can: weigh the options, make a decision, and carry the final call.

b.           For the SATS worker: AI can automate physical and repetitive processes, so that he or she is in a safer and more comfortable environment, while taking on responsibilities that make better use of their skills.

28.          Technology of this kind raises the value of the worker. As Dr Wan Rizal and Mr Sanjeev Tiwari among others put it, workers can enjoy better wages, better welfare, and better work prospects. Technology can transform existing jobs, and also create new jobs that did not exist before.

29.          I am glad that Mr Ang Wei Neng spoke extensively about the new opportunities that autonomous vehicles will bring. These opportunities are precisely why my Ministry has been preparing for autonomous vehicles, at the airport and seaport, and also on our roads.

30.         Recently, I gave out scholarships to children of ComfortDelGro’s driver-partners.

a.           I met many proud parents, many of whom have been drivers for more than ten years. We chatted about what their children were planning to study – engineering, computer science, finance.

b.           All of the parents had one thing in common – they wanted their children to do better in life than they did.

31.          I shared with them the new and exciting jobs that autonomous vehicles will bring in – software developers, robotics designers, vehicle engineers and so on. Jobs that many of their sons and daughters would love to take on.

32.          I explained that the Government is preparing for autonomous vehicles for the same reason that we invest in our children's education – we are giving them a better future.

33.          I know there is concern amongst our taxi and private hire car drivers about autonomous vehicles. SMS Sun Xueling and I meet the driver unions very regularly. We understand the concerns.

34.         But let me be clear that driver jobs are not going to vanish anytime soon.

a.           Today, there are over 70,000 taxi and private-hire car drivers in Singapore.

b.           In contrast, we have about 20 autonomous vehicles running around our roads, mostly in Punggol.

c.           Even if I gathered every autonomous vehicle in the world, and moved them all to Singapore, that would only be around 7,000 cars, or less than 10% of our taxi and private hire car population.

d.           So autonomous vehicles are not displacing today’s drivers. And even in ten years, I expect that we will still require many human drivers. And our plan is indeed to take a proactive approach to support our drivers in any transition.

Conclusion 

35.          Mr Deputy Speaker, let me close.

36.          Technology matters, and we will keep investing in it. But the future of transport is not about robotaxis, or about drones, or the smartest AI brain. It is ultimately a story about people.

37.          Last month, I was in Chongqing, China. I met our SIA station manager there. Her name is Jocelyn, a young and energetic woman. She was on her first overseas posting; the only SIA staff in that office. There is one flight to and from Singapore daily, but it is at a godforsaken hour – landing at 1.15am, and departing at 2.35am. So Jocelyn is out at the airport in the middle of the night, and gets home to sleep only at 4am. But from my conversations with her, I could tell that she loves her job – living in a new city, working in a different culture, learning about herself as she strives in a new environment.

38.         We can offer young Singaporeans like Jocelyn such opportunities because of the global reach of our transport sector. Because we build firmly with an eye on the future. Because we do not stand still.

39.          This is what all of us at MOT are striving for. Not technology for its own sake. Not staying number one for its own sake. But so that our children, and theirs after them, can reach for opportunities that we ourselves never had.

40.         Globally-oriented, future-focused, people-centric. We hold the line on the rules, so that a small nation is never left at the mercy of a large one. We invest at the frontier, so that our hard-won lead is not quietly surrendered. We do it all for one reason and one reason only – for Singaporeans. For the Singaporeans of today, and for the Singaporeans of tomorrow, who will one day do things that we, in this Chamber, have not yet imagined.

41.          Mr Deputy Speaker, I support this Motion. Thank you.