News

Mr Chan Yeng Kit, CEO, SPH Media

Mr Christopher Ong, Managing Director, DHL Express Singapore,

Mr Wong Wei Kong, Editor in Chief, English/Malay/Tamil Media Group,

Ms Chen Huifen, Editor, Business Times,

Distinguished guests, ladies and gentlemen,

1.     Good evening. I am very happy to join you this evening to honour our outstanding companies and business leaders. My heartiest congratulations to all the winners of this year’s awards. 

A Changed World

2.     When the Singapore Business Awards was first introduced 40 years ago, Singapore’s economy was also going through a difficult period. We were facing our first economic recession in 1985 after decades of uninterrupted growth. There were external challenges, but also internal factors we had to overcome to enable our economy to recover and bounce back. 

3.     We are once again facing a more turbulent and uncertain global environment, which is significantly different from the world order we are familiar with in the past. The road ahead will not be easy. There will be more ups and downs, and more twists and turns along the way.  The world has become more arbitrary and protectionist. It is not the same rules-based, multi-lateral global order that had enabled a small and open economy like Singapore to thrive. This is not the environment we prefer, but as a small country, we are a price-taker, and do not get to choose the environment we operate in. However, we are not without agency. To navigate successfully in these stormy seas, we must make the best use of the cards we have by leveraging on our strengths, continuing to invest in building our enterprise and workforce capabilities, and seeking out new opportunities and partnerships with like-minded economies and companies.  

Opportunities amidst Uncertainty

4.     In my speech tonight, I will focus on three areas. These are not exhaustive in terms of how we want to respond to the current situation, but are some of the key areas we want to focus on: 

a.     First, strengthening Singapore position as a trusted business hub;

b.     Next, enhancing our economic linkages and connectivity with like-minded partners; and

c.     Finally, improving Singapore’s competitiveness and optimise the use of our resources through pro-enterprise rules and process review.

Trusted business hub 

5.     Let me start with how Singapore can further strengthen our position as a trusted business hub.  

6.     In a more uncertain world, trust and reliability have become more valuable. This is where Singapore can play to our strengths. As Mr Christopher Ong had mentioned earlier, some DHL customers are looking at shifting some of their business operations to Singapore. As a trusted and dependable hub, we can offer stability for long-term investments. This “trust premium” is a competitive advantage that has enabled Singapore to build a vibrant financial services sector and become a leading supply chain and logistics hub in Asia. Global companies continue to choose Singapore because they know they can count on clear rules, consistent policies, and a business-friendly environment. We say what we mean, we mean what we say; and we will do what we say.  

7.     For example, DHL has launched its new Pharma Hub in Singapore about a month ago. This dedicated facility for pharmaceutical logistics is a part of DHL group’s $500mil investment into Asia Pacific to bolster its Life Sciences and Healthcare Infrastructure. The investment by DHL recognises the growth potential of Asia Pacific, and Singapore’s role as a trusted partner and logistics hub for the region. 

8.     As uncertainty persists, doubling down on this critical strength will be key to strengthening our competitiveness in the next phase of our economic growth. We will build on Singapore’s trust premium and strengthen our foundations by

a.      Maintaining a strong tripartite partnership between government, employers and unions; 

b.     Continuing with long-term planning as a key feature of our governance;

c.     Remaining open to ideas, talents and investments from around the world, and pushing back against divisive and xenophobic politics that have caused problems in many other societies; 

d.     Upskilling our workers so they can seize new opportunities and remain employable in a fast-changing global economy.  Lifelong learning for lifelong employability;

e.     Investing in R&D and creating an ecosystem which encourages and supports innovation; and

f.     Working with industry partners to cut red tape and provide a more pro-enterprise environment for our businesses.

9.     There are many more things we need, but the aforementioned steps will help to reinforce Singapore’s trust premium and allow us to better seize new opportunities and grow a range of high value sectors that can benefit from our stability, integrity and strong governance.

Enhancing economic linkages and connectivity with like-minded partners

10.    Second, we must continue to stay connected with the world, and forge closer trade links with like-minded economies and companies. Given the fluid situation now, it is difficult to predict the eventual shifts in global trade routes and supply chains. It is ongoing and evolving, and we have to monitor the situation carefully. Regardless of what unfolds in the months ahead, we will do our best to ensure that Singapore remains relevant and continues to be a key node where trade can flow through freely and reliably. No matter how supply chains shift, Singapore will remain relevant as a logistic hub and key node in supply chain networks. 

Enhancing economic linkages by reducing trade and non-trade barriers 

11.     The United States is currently the world’s largest economy, and accounts for 13% of global imports. It is the 800-pound gorilla, as some US government leaders described, but it is not the only gorilla around. There are other gorillas and great apes; although they may weigh less than 800 pounds individually, their combined weight is collectively much more than 800 pounds.  

12.    We need to forge our path ahead. It is precisely in times like this that we need to open up more – not close up or move inwards nor build barriers – so that we are able to team up with other like-minded partners to strengthen trade connectivity and ensure continued access to growth opportunities. Many of these will not be opportunities that are within Singapore, but opportunities that companies from Singapore can tap on in the region.

a.     Closer to home, Singapore, together with our ASEAN neighbours have reaffirmed our support for a rule-based multilateral trading system and have jointly agreed to deepen economic integration within ASEAN member states at the Special ASEAN Economic Ministers’ meeting last month. 

b.     I am also glad to see that many other countries share Singapore’s belief in preserving a multilateral rules-based global trading system. To date, we have established a strong network of 28 free trade agreements and five digital economy agreements, and I hope that we can grow this further. 

c.     We will work towards implementing more bilateral and multilateral agreements such as the MERCOSUR-Singapore FTA, and welcoming more like-minded partners to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). 

d.     We must continue to stay open and bring down, or where possible, eliminate trade and non-trade barriers to allow for more trade flows between partner economies. 

13.    This is why Singapore has been working actively with our ASEAN neighbours to be able to open up more via the ASEAN Trade in Goods Agreement (ATIGA), which has been in force since 2010. 

a.     Under the ATIGA, Singapore, including five other nations have already removed virtually all import tariffs. The remaining four nations have also reduced their import duties down to between 0% and 5% on nearly 99% of their tariff lines. Of course, there is more room for improvement, and we hope we can go further and remove the tariffs completely one day.

b.     Efforts are underway to upgrade ATIGA by reducing non-tariff barriers, incorporating sustainable trade standards, and emerging priorities such as supply chain resilience.  

c.     In a more uncertain global environment, ASEAN needs to speed up our economic integration efforts within our region and with other partner economies. We do not have a choice. This is not the time for us to slow down or implement gradually. It is the time for us to move quickly and speed up the economic integration in our region. 

d.     If we can do this, these enhancements will increase intra-ASEAN trade and deepen ASEAN’s economic integration, which will benefit our companies and workers. They will also enable businesses to build more secure and agile supply chains across the region to mitigate risks from external shocks and protectionism. 

Facilitating greater cross border collaborations 

14.    Beyond establishing trade agreements, we should also facilitate more cross border collaborations. One example of is the Johor-Singapore Special Economic Zone (JS-SEZ). For businesses, this means greater access to a wider talent pool, more diversified supply chains, and opportunities to leverage on the competitive advantages and complementary strengths of Johor and Singapore. By tapping on a broader range of resources, the JS-SEZ will enable businesses to better optimise their operations, reduce costs and scale more efficiently across the region. What both Governments can do is to look into facilitating the movement of people and goods between Singapore and the JS-SEZ.

Improving efficiency and optimising use of resources through rules and process review

15.    Lastly, we should continually review our rules and processes to cut red tape and reduce business costs, and improve our efficiency and use of scarce resources. This is part of improving Singapore’s productivity and competitiveness. By adopting a risk-based approach, we can also calibrate our rules and regulations to enable businesses to seize new opportunities. 

16.    This is one area where the Government can work in partnership with our businesses within the industry. Businesses know the pain points, from experience having to deal with them regularly. The Government may not be able to pinpoint these pain points, red tape and areas for improvement without businesses’ feedback. With businesses’ feedback, we can focus our efforts in a more precise manner. Businesses are also not vested with the authority to amend the rules without securing approval from the Government. Hence, I see this as a good partnership: with your feedback, Government agencies will better know the areas of improvement, and we can work with you to improve our rules and processes, to cut down on processing time and open up more opportunities for collaboration. 

17.    Under the Inter-Ministerial Committee on Pro-Enterprise Rules Review led by DPM Gan, we have made some progress in identifying areas for improvement following extensive engagements with industry stakeholders. DPM Gan announced at MTI’s Committee of Supply debate earlier this year three key commitments to enhance Singapore’s business environment. These include:

a.     Publishing and streamlining of service standards for business regulatory applications to within 30 working days where feasible; 

b.     Extending license validity to up to three years as a start to provide greater certainty; and 

c.     Simplifying regulatory processes to minimise sequential approval and duplicative information requests, so we cut down on processing time.

18.    This is a continuous improvement process. We are not there yet today, but we want to continue to engage with our stakeholders to make further enhancements. I would like to invite everyone to work with us and our agencies, to help us to help you. This evening, I would like to share with everyone some rules review initiatives from the MOT family across the air, land and sea sectors.  

19.    First on air transport. We have previously introduced several pro-enterprise rules review initiatives to help reduce business costs. 

a.     These include the fee reduction for drone light show operators that PM Wong mentioned during National Day Rally 2024, from more than $25,000 for a lightshow involving 1,000 drones to a flat fee of $500. The fee is also charged on a show-by-show basis, instead of a drone-by-drone basis. We also removed the need to paste stickers on every drone, reducing processing time for operators. CAAS has also streamlined the approval process for cargo trackers that are used by air cargo shippers, helping them to save time and money. 

b.     Another example which my CAAS colleagues have been working hard with the International Civil Aviation Organization (ICAO) is to review the height restriction requirements around airports. 

i.     The existing requirements were set in the 1950s. Since then, there have been technological advancements in aircraft and air navigation systems.

ii.    CAAS has been chairing the international task force under ICAO that was established to review these requirements, to enable more airspace surrounding airports to be freed up for developments, while ensuring aviation safety. 

iii.   The revised requirements resulting from this task force’s work will come into effect internationally from August this year. 

iv.   This would allow buildings in different areas across Singapore to be built higher, potentially up to 15 storeys more for residential buildings and up to 9 storeys more for industrial and commercial buildings. The achievable benefits will, however, be contingent on other infrastructure and planning considerations.

v.     More studies need to be done by various agencies to confirm the increase in height restrictions in Singapore, but this change will support further land intensification, which is very important for land-scarce Singapore. 

vi.    It could open up new opportunities for our businesses and have the potential to increase our overall housing supply that will benefit more Singaporeans.

20.    Next on land transport, LTA colleagues have implemented several rules and process changes to reduce the time required to construct bus shelters from 14 weeks to 4 weeks.

a.     LTA have streamlined the approval processes for street works which includes the construction of bus shelters. 

b.     They also employed modular construction techniques for bus shelters that involves using prefabricated components that can be quickly assembled on-site 

c.     With the new arrangements, contractors can benefit from time savings and reduced labour costs.

d.     I have asked LTA to apply this same approach for developers and contractors who are working on other public and private projects. 

e.     Streamline the application and approval process by LTA, communicate the requirements clearly to stakeholders, and help businesses to save time and save money where possible.

21.    Just like what we have done to remove the need for LTA to send letters to motorists who have ERP arrears. Later this year, if you have ERP arrears, there will be an alert on the display of your OBU, and you can make payment and settle the arrears by pressing a button on the display.  No more letters, no more $10 admin fee.  It is a win-win outcome for both motorists and LTA.

22.    Later this year, LTA will be expanding its existing vehicle parking proposal and plans lodgement scheme to include additions and alterations (A&A) works at residential, commercial and mixed development car parks. What this means is that works can now commence immediately upon lodgement instead of having to wait for at least three weeks previously to obtain application approval. As more than 50% of applications submitted last year for carparks in residential, commercial and mixed developments were for A&A works, the proposed improvement by LTA will help developers and the built environment industry to save quite a bit of time.

23.    Lastly, on sea transport, our colleagues at MPA had also worked with the industry to introduce several pro-enterprise rules review measures.

a.     These include the waiver on the need for security deposits and banker’s guarantees for billing parties who are assessed to be of lower credit risks, and I understand that this will save about $20 million every year. MPA has allowed night movement of lined towed barges at Pasir Panjang Terminal our shipping companies save costs and improve productivity.

b.     MPA has developed a digital twin of the Port of Singapore. This enables dynamic monitoring of key activities and data such as vessel movements, port activities and weather conditions. 

i.     For businesses, this translates to greater operational efficiency, predictability and resilience. 

ii.    For instance, shipping companies can now benefit from real-time visibility of port traffic and operations and take steps to reduce waiting times and operating costs. 

iii.   The digital twin has also enabled MPA to perform a comprehensive three-dimensional mapping of the seabed by integrating data from multiple agencies such as PUB and SLA. 

iv.   This would allow businesses to better optimise the installation and routing of underwater cables by avoiding obstacles and potential risks such as damaging other existing cables, which would reduce cost and time needed by companies. 

24.    Creating a pro-enterprise environment and helping our businesses, both large companies and SMEs, to reduce costs and do well is part of the Government’s mission. As Minister, I will continue to work with my colleagues to make this objective a priority for my Ministry, whether in MOT or MND. We will empower and support our officers to take calculated risks and surface their ideas; providing top-down support for ground-up ideas. In fact, many of these ideas that I have shared arose from either feedback from the industry or our officers. This is something that we encourage our officers to do, and ensure that they are supported and empowered to work with the industry to surface good ideas, which could then translate into adjusted rules and processes. This is not just an exercise to think of what new things to do, it is also about instilling the discipline to take a hard look at what existing initiatives we should stop, what red tape we can cut, and how we can operate more efficiently so that we can pass through the time and cost savings to our citizens and businesses.  

Conclusion 

25.    Ladies and gentlemen, the road ahead will be uncertain and we will face tough challenges, but this Government will have your back, and we will walk this journey with you as one united Team Singapore.   

a.     The way forward is not for us to turn our backs on globalisation. Instead, we will focus on opening up to the world even more; embracing collaboration and trade with other countries, companies from other economies and like-minded partners. We must double down on staying open and connected with the world, and take steps to enhance our trusted reputation, productivity and partnerships. 

b.     In these turbulent times, it is more critical than ever for like-minded countries and partners to foster closer collaboration and build a more resilient international trading system. 

c.     And for Singapore to leverage on our strengths as a trusted hub, our excellent connectivity, our openness to trade and talent, our ability to plan long-term and importantly, our strong tripartite partnerships. 

26.    I have shared some thoughts this evening on how Singapore could navigate this new world order.  As the Singapore Economic Resilience Taskforce continues our work, my colleagues and I welcome feedback from the industry on how we can seize new opportunities. We want to partner you and work closely with you on this. Our strong tripartite partnership is a unique strength for Singapore which other countries will find it difficult to replicate.  

27.    We have forged a strong compact, built on solidarity and trust in one another. Let us build on this and enable Singapore to emerge stronger and continue to shine bright, even as the world around us may grow darker with uncertainty. In this way, Singapore can remain a beacon of light and optimism in the region, like a lighthouse providing safe passage for ships sailing in stormy seas.

28.    Thank you.