MINISTRY OF TRADE AND INDUSTRY SINGAPORE’S ECONOMIC PLANNING

MINISTRY OF TRADE AND INDUSTRY Economic Planning in Singapore No National Agency for Economic Planning Emphasis on Robust Policy-Making & Practical Application

MINISTRY OF TRADE AND INDUSTRY ECONOMIC STRATEGIES

MINISTRY OF TRADE AND INDUSTRY Our Economic Vision A Globalised Economy –the key node in the global network, linked to all major economies A Creative and Entrepreneurial Nation –willing to take risks to create fresh businesses and blaze new paths to success A Diversified Economy –powered by the twin engines of manufacturing and services

MINISTRY OF TRADE AND INDUSTRY 5 Key Thrusts Expand External Ties Manage our Competitiveness and Flexibility Grow Domestic Enterprises and Encourage Entrepreneurship Promote Twin Engines of Growth - Manufacturing and Services Develop Human Capital

MINISTRY OF TRADE AND INDUSTRY Multilateral Regional National Free & open international trading environment FTAs Expanding External Ties (1) Expanding External Ties: Promoting Trade

MINISTRY OF TRADE AND INDUSTRY (2) Managing Our Competitiveness and Flexibility Shift from Direct to Indirect Taxes Refocusing CPF Flexible Labour Market and Wages Competitive Factor Pricing

MINISTRY OF TRADE AND INDUSTRY (3) Encouraging Entrepreneurship Nurturing Spirit of Entrepreneurship and Creativity –Minister to oversee Entrepreneurship Entrepreneurial : A nation willing to take risks to create fresh businesses and blaze new paths to success

MINISTRY OF TRADE AND INDUSTRY (3) Growing Domestic Enterprises Private Sector Driven Initiatives Enterprise Ecosystem Intellectual Capital Labour Expanded Region- alisation Enterprise Continuum Enhanced Cluster Development Quality of life Business environment Financial capital Singapore as a compelling global hub for business and investment Sustainable GDP/GNP growth

MINISTRY OF TRADE AND INDUSTRY (4) Promoting Twin Engines of Growth - Manufacturing Manufacturing –Upgrading Existing Clusters –Developing Capabilities in Emerging Technologies

MINISTRY OF TRADE AND INDUSTRY (4) Strengthen Industry Clusters Value Chain Value Supply Chain Management HQ Production Tech-based Innovation Market-based Innovation R&D Testbedding Entire Value Chain

MINISTRY OF TRADE AND INDUSTRY (4) Developing New Capabilities Total Manufacturing Value-added: US$28 billion 2004 Contribution to Manufacturing Value-Added

MINISTRY OF TRADE AND INDUSTRY (4) Promoting Twin Engines of Growth - Services Services –Upgrading Established Areas –Promotion of Promising New Areas –Ministerial Committee on Services

MINISTRY OF TRADE AND INDUSTRY (4) Services Sector Contribution to GDP Growth Percentage Contribution to Growth

MINISTRY OF TRADE AND INDUSTRY (4) Further Develop our Services Sector % (Services share of GDP)

MINISTRY OF TRADE AND INDUSTRY (5) Develop Human Capital Equipping Singaporeans with Skills and Know-How Develop Global Outlook Welcoming Global Talent Singapore’s Overseas Network

MINISTRY OF TRADE AND INDUSTRY (5) Develop Human Capital: Investment in R&D activity GERD (% of GDP) R&D Personnel per 1000 people Source: IMD World Competitiveness Yearbook 2005

MINISTRY OF TRADE AND INDUSTRY MALAYSIA: University level covers all academic education after form 5 SOURCE: NATIONAL SOURCES, OECD UNITED STATES (2002) SOUTH KOREA (2004) JAPAN (2003) SINGAPORE (2004) UNITED KINGDOM (2002) HONG KONG (2004) MALAYSIA (2003) SWITZERLAND (2002) TAIWAN (2003) GERMANY (2002) THAILAND (2004) CHINA (1998) INDONESIA (2002) PER CENT (5) Develop Human Capital: Improving Educational Profile (% with university-level education)

MINISTRY OF TRADE AND INDUSTRY (5) Develop Human Capital: Expanding Our Tertiary Education Augment local institutions: –4th university –5th polytechnic opened in 2003 Attract top world-class institutions to Singapore: (Top institutions with strong presence in Singapore) –Massachusetts Institute of Technology –Georgia Institute of Technology –Johns Hopkins University –INSEAD –The Wharton School of the University of Pennsylvania –The University of Chicago Graduate School of Business –Technische Universiteit Eindhoven. –The New York Institute of Finance –University of New South Wales (2007)

MINISTRY OF TRADE AND INDUSTRY Realising ASEAN Vision 2020 Inter-dependence of individual ASEAN economies for long-term growth and development Changes in China and India are altering global patterns of trade and investment, causing new global production chains to be set up

MINISTRY OF TRADE AND INDUSTRY Thank You