Minister: Need to review pre-pandemic assumptions about economic strategy

As Singapore formulates its economic strategy for the future, it will have to review pre-pandemic assumptions that may no longer hold true, said Education Minister Chan Chun Sing yesterday.

These include the country's value proposition as a global business hub, its attitude towards economic growth and the premise that it operates in a rules-based world order.

In the past, a business hub that was convenient and cheap would suffice, Mr Chan said.

But this is no longer the case. Other factors - such as the ability to aggregate capital based on the rule of law, bring together global talent and protect intellectual property - have now become key, and form part of Singapore's long-term value proposition.

The country should play the long game and distinguish itself in such areas, he added.

"While the rest of the world becomes more uncertain, people tend to be more short-term in their perspective of how fast they can get a return," Mr Chan said.

"We should play the long game. Go for those investments that will be anchored here for the long haul and allow us to build up niche capabilities that are harder to displace."

Mr Chan was speaking at a dialogue moderated by Mr Chng Kai Fong, managing director of the Economic Development Board.

He noted that Singapore has traditionally operated in a rules-based world order marked by "a certain certainty in the way we deal with other economies". But it may have to adapt to a more fragmented or bifurcated world.

And even as the country bounces back from the pandemic, its recovery is likely to be K-shaped, Mr Chan added.

"While the rising tide will lift all boats, (it) will lift all boats quite unevenly... The question is how do we help everybody to keep moving along?" he said.

Part of the answer, he added, will be to create jobs that give people in lower-growth sectors a sense of dignity and purpose, so they feel able to keep up with society.

The discussion also touched on topics such as education and skills training, with the minister suggesting that employers take a more proactive approach to equipping workers with the required skills.

For instance, collaborations between businesses and schools will keep educators at the forefront of industry developments and give students the opportunity to work on cutting-edge projects.

Changes also need to be made to the way adults are taught, and work done to ensure they have the agility required to switch to adjacent sectors when needed.

Employers have to understand that it is not always possible to get the perfect candidate, Mr Chan added. But if a worker already has, say, seven of 10 skill sets required for a job, the employer should work to help the employee acquire the other skills required, rather than rule out the person.

The minister also commended companies that make efforts to train lower-wage and older workers for changing job roles, noting that such decisions are often driven by the "sense of a certain social compact".

"They take their employees as part of their family, such that even if the job changes, they are not going to just abandon the old employees," he said. Such attitudes are what Singapore needs to see more of at the company level, beyond the broad sweep of government policy, he added.

He also hopes to see companies and individuals come forward on a regular basis to help support the disadvantaged in society.