SINGAPORE - Safeguarding Singapore’s reserves is critical in defending against geopolitical and economic uncertainties, Deputy Prime Minister Heng Swee Keat said on Tuesday.
Speaking at a fireside chat titled “Thriving in a New World for Enterprises” at Enterprise Singapore Society’s fifth anniversary event, he noted that the Government was able to draw $40 billion from the reserves amid the Covid-19 pandemic to support Singaporeans, Singaporean businesses, and the acquisition of Covid-19 vaccines.
“We could resume economic activities and bounce back very quickly. The reserves are a very important asset,” he said.
Mr Heng, who is also Coordinating Minister for Economic Policies, said Singapore’s businesses should have sufficient risk management measures to act as a buffer against geopolitical and economic uncertainties, just like the country and its reserves.
“What I have seen many businesses do is to diversify their markets. Because to put all of your eggs in one basket is no longer a very sound strategy,” he said at the event held at Shangri-La Hotel.
Mr Heng also emphasised the need for Singapore’s businesses to take seriously the emergence of technologies such as artificial intelligence (AI).
“The future economy will be an economy driven by innovation and technology,” he said, adding that businesses need to excel on the global stage or risk being replaced.
Mr Heng also emphasised that while Singapore’s population is ageing, companies should not neglect their workers, and have a responsibility to redesign jobs and keep in employment workers who do not wish to retire.
“The challenge for our companies is how do they marry the expertise of someone who is senior with the younger folks who are digital natives? I think if we can do that it will be a great progress,” he said.
When asked about Singapore’s role in Asean and Asean centrality, DPM Heng said Singapore needs to be in a position where it can work well with other countries.
He highlighted that Singapore companies need to have a good understanding of the markets in the region.
“It’s not just the political leadership taking a certain position. It’s also our businesses having a good understanding of the regional markets and building up a network of relationships with businesses in the region,” he said.
He added: “If you have a better understanding of your business partners in the region, you can negotiate and make deals a lot more effectively.”
Minister of State for Social and Family Development Sun Xueling, who also attended the event, said: “The future of trade is concerning as countries become increasingly protectionist to prevent over-interdependence. In such an environment, we need to work doubly hard to establish linkages with the economies around us.”
Ms Sun added: “In line with this spirit, we see Enterprise SG Society embarking on the timely endeavour to integrate alumni, networks and resources, not only in Singapore but across borders.”
Enterprise Singapore Society is the alumni organisation of Enterprise Singapore. It has more than 700 members, including entrepreneurs and senior management working in local companies.
On Tuesday, Enterprise Singapore Society launched its overseas chapters in North America, the Middle East, China and several South-east Asian countries.
Mr Alex Ng, president of Enterprise Singapore Society, said the chapters will serve as informal networks for its members to better understand the local environment when expanding their businesses into those markets.
“This is a good example of how Singaporeans from the private sector are contributing to extending and deepening economic and business ties globally,” he said.
