SINGAPORE – Inflation may remain stubbornly high and the geopolitical landscape may be more fragmented, but Singapore will try to secure sustained economic growth and embed itself deeper into global supply chains and markets, including new ones.

In statements issued on Wednesday as addenda to President Halimah Yacob’s address at the opening of Parliament on Monday, the Ministry of Trade and Industry (MTI) said it will step up efforts to grow Singapore’s economy, create good jobs, and support businesses and workers in seizing new opportunities.

Meanwhile, the Monetary Authority of Singapore (MAS) said it will seek to secure sustained non-inflationary economic growth and maintain Singapore’s position as a leading international financial centre in Asia.

In the months ahead, persistent global inflation and a weak global demand outlook will weigh on Singapore’s growth, said Minister for Trade and Industry Gan Kim Yong. The priority is to drive economic growth and jobs, he added.

He said there is a need to remain open and stay connected to global opportunities to cope after emerging from the Covid-19 pandemic.

Other countries may adopt more protectionist measures, but Singapore will expand and diversify its trading activities and markets, capture more re-exports and transhipments, and embed itself deeper in global supply chains, said Mr Gan.

“This strengthens our relevance as a global business hub and anchors high-value economic activities and good jobs here. We will also strengthen our international partnerships to capture new opportunities, arising from Asia’s growth and global trends in digital trade and sustainability,” he said.

In a move that would plug Singapore businesses deeper into key partner markets, Minister-in-charge of the Monetary Authority of Singapore (MAS) Tharman Shanmugaratnam said the central bank is looking to ramp up cross-border payment connectivity by establishing bilateral and multilateral real-time linkages involving Asean countries.

Senior Minister Tharman said MAS will also build an innovative and responsible digital asset ecosystem, explore the real use case of blockchain technology, as well as look at the tokenisation of financial and real economy assets.

It will also step up efforts to develop new digital infrastructure and platforms to enhance the financial industry’s efficiency, access new markets, and promote new models in digital finance.

For instance, in bond markets, MAS will develop infrastructure to facilitate more seamless end-to-end issuance, listing and settlement for Asian securities transactions, while in the funds sector, it will make post-trade funds settlement more efficient and transparent for fund managers.

On the issue of employment, Mr Gan in February said MTI is looking to add 100,000 jobs in modern services, such as consulting, legal, accounting, financial and infocomm technology, within the decade, while MAS has said it aims to create 3,000 to 4,000 jobs per year in the financial services sector over a five-year period to 2025.

The financial sector is on track to achieving these targets, growing by an average 4.8 per cent per year and adding an average 7,300 jobs per year during 2021 to 2022, Mr Tharman said on Wednesday.

To address carbon constraints, Mr Gan said Singapore will secure alternative forms of low-carbon energy and support enterprises to improve energy efficiency and reduce their carbon footprint.

Promising enterprises will also receive help to internationalise and support to develop capabilities in sustainability, he added.

On MAS’ part, Mr Tharman said the regulator will work with partners to develop an ecosystem of stakeholders to mobilise capital and support Asia’s transition to net-zero carbon emission, including developing clear criteria to identify green and transition activities for eight key sectors in 2023.

Stronger economy and workforce for future

Key highlights of ministries’ plans to help workers improve their skills, strengthen Singapore’s global connectivity and push ahead with digital transformation.

Create jobs and upskills workers

• The Ministry of Communications and Information (MCI) will help tech workers stay competitive through initiatives under the Information and Communications Jobs Transformation Map, in areas such as 5G, artificial intelligence (AI) and cyber security.
• The Ministry of Trade and Industry (MTI) aims to equip workers with industry-relevant skill sets in emerging sectors and ensure better alignment of training with industry needs.
• In the financial services sector, the Monetary Authority of Singapore (MAS) aims to create 3,000 to 4,000 jobs per year from 2021 to 2025. It will also provide training support for finance professionals at different stages of their careers, and develop specialist talent in areas such as sustainability and technology.
• The National Research Foundation (NRF) will nurture young people’s interest in science, technology, engineering and mathematics (Stem) to build a strong core of local research talent. It will also provide diverse pathways for those who wish to take up research careers.

Stay open and connected to the world

• MTI looks to tap global growth opportunities by entering new markets, embedding Singapore deeper in global supply chains, and strengthening regional and international partnerships.
• MAS will enhance cross-border payment connectivity by establishing bilateral and multilateral real-time linkages involving Asean countries.
• NRF plans to strengthen Singapore’s position as an attractive global-Asia node for research and development by tapping its diverse workforce and vibrant research, innovation, and enterprise ecosystem, and creating connections to fast-growing markets. It also seeks to build a strong core of local research talent, while remaining open to top international talent.

Push ahead with next stage of economic transformation

• MCI’s Digital Connectivity Blueprint will outline the way forward for Singapore’s digital infrastructure, while the Digital Enterprise Blueprint will drive digitalisation across the economy, particularly for small and medium enterprises.
• Promising local enterprises will get support from MTI to become global leaders.
• MAS will position Singapore as Asia’s centre for philanthropy advisory competencies and solutions. It will also work with partners to develop an ecosystem of stakeholders to mobilise capital and support for Asia’s transition to net-zero.
• To unlock new opportunities for growth and create good jobs for Singaporeans, NRF will advance Singapore’s capabilities in strategic technology areas, such as semiconductors and AI. More will also be done to ensure continued growth of private sector R&D and innovation, including providing customised financial support for promising local, high-growth enterprises to compete globally.