Parliament backs amended WP motion on Singapore's future economy after nine-hour debate

[00:00:00] Speaker 1: Singapore's parliament has passed an amended motion on building an economy of the future after a marathon debate that lasted close to nine hours over how Singapore should position itself in an increasingly uncertain global environment. Transport Minister Geoffrey Siao says the country's economic strategy has always been centred on Singaporeans. He says that while there is considerable common ground, the government and the Workers' Party differ fundamentally in how they view Singapore's economic model. [00:00:33] Speaker 2: The Workers' Party appears to believe that Singapore's economic model is imbalanced and needs to be fundamentally reoriented. They have portrayed Singapore as a place where MNCs create wealth and there's some Faustian bargain where SMEs are held down and Singaporeans receive the benefits through redistribution. I disagree with this characterisation. And this is not an academic disagreement, but one that is crucial to the policies that we will pursue. If the original diagnosis or assumption is wrong, the proposed remedy will send us in the wrong direction. [00:01:15] Speaker 1: The changes make clear that building a more equal and inclusive economy is in line with the economic strategy review with growth driven by both local and global enterprises as well as domestic and external demand. The Workers' Party's original motion had stated that achieving this would be notwithstanding the economic strategy review driven by dynamic local companies, healthy domestic demand, and Singaporeans and Singaporean capital venturing abroad. [00:01:44] Speaker 3: We need an updated growth model that cares not only about the headline GDP growth figure, but the structure of growth. It is acceptable as an exigency to grow first and then redistribute by vouchers and rebates. Over the medium and long term, we should be building an economy where a fair distribution is produced by the growth itself rather than repaired afterwards. [00:02:07] Speaker 1: Nearly 20 MPs weighed in on issues ranging from helping firms transform to protection against retrenchment for workers. [00:02:16] Speaker 4: It reflects the balanced Singapore must-wreck. It is aligned with the ESR. It supports dynamic local companies and global enterprises as part of one ecosystem that creates opportunities for Singaporean entrepreneurs and workers. It values healthy domestic demand while recognising the necessity of strong external demand. [00:02:41] Speaker 1: Uplifting local companies was a key topic in the debate. Ministers, PMPs and some NMPs argued that supporting SMEs must go hand-in-hand with attracting global enterprises and tapping overseas demand in line with the economic strategy review. The Workers' Party had called for a move away from what it described as an overly MNC-centric growth model and instead moved towards one that is driven more strongly by domestic capital and Singaporeans venturing abroad. Sherlyn Sia reports. [00:03:16] Speaker 5: From hard-land shops to firms with global ambitions, SMEs formed the backbone of Singapore's economy, making up 99% of enterprises and employing more than 70% of their workforce. With technology disrupting industries and costs staying high, the government says support must go beyond short-term relief to help firms transform, raise productivity and grow. [00:03:42] Speaker 6: There is no one-size-fits-all approach. Every enterprise starts from a different position, serves different markets, customers and face different opportunities. And that is why we tailor our approach to support the company's needs, whether is it in adopting AI, improving productivity, developing new product services, expanding into new markets. [00:04:05] Speaker 5: Ms. Lo was laying this out in response to the Workers' Party, which argued that more fundamental changes are needed. Associate Professor Jameis Lim said Singapore had relied too heavily on foreign investment and multinational corporations and called for a stronger, bottom-up model led by homegrown firms. [00:04:24] Speaker 7: We need a conscious shift from not too much fixation with tax competition, an undervalued exchange rate and the wooing of footloose multinationals. We must instead promote bottom-up formation and growth of our indigenous companies and unleash the innovative and entrepreneurial spirit of our local workforce. [00:04:46] Speaker 5: He also called for more support to help SMEs overcome high-cost financing constraints and difficulties attracting talent. PAP MP Edward Chia agreed that stronger Singapore companies were needed, but in moving amendments to the motion, he argued that this should not come at the expense of global firms or overseas demand. [00:05:08] Speaker 4: Dynamic local companies matter. But we should not frame local companies and global enterprises as competing choices. Singapore's success has never been built on such false choice. Instead, our focus should be on helping MNCs, large local companies, SMEs and start-ups build up one another. Global enterprises bring investments, technology and international networks, while local enterprises contribute agility, innovation and specialized capabilities. [00:05:40] Speaker 5: The debate also turned to where the good jobs of the future should come from. WP MP Eileen Chung said Singaporeans should be equipped to seize opportunities in emerging regional industries, rather than depend mainly on global firms creating jobs here. [00:05:55] Speaker 8: For too long, we have pictured the good job as a high-value role inside an MNC that chose to base itself here in Singapore. It is a good job that depends on someone else's decision to come. There is another kind of good job. One we seize because a field is taking shape around us and Singapore is well-placed to lead it. [00:06:13] Speaker 5: Minister Geoffrey Xiao said support for local firms and efforts to attract foreign investment were mutually reinforcing. MNCs, he said, bring technology, international networks and high-skilled jobs, while helping local companies enter global supply chains. [00:06:29] Speaker 2: At a time when countries are spending more than ever to attract and reshore strategic investments, our response surely cannot be to do less. Giving up these investments would mean fewer higher-quality jobs and fewer opportunities for Singaporeans. And this cannot be our approach. [00:06:49] Speaker 5: Mr. Xiao acknowledged that tariffs, industrial policies and a more fragmented global economy had made overseas expansion harder. But he said Singapore should not turn inward. Instead, it must strengthen local firms to compete in more markets, while remaining open to the investments and capabilities needed for them to succeed.