Economic Opportunities for Singapore when COVID-19 Situation Transitions to Endemic Status
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the economic opportunities for Singapore in an endemic COVID-19 environment as raised by Mr Cheng Hsing Yao. Minister for Trade and Industry Gan Kim Yong responded that the government is leveraging Industry Transformation Maps and Emerging Stronger Taskforce recommendations to drive economic normalisation as borders reopen. Key strategies involve positioning Singapore as a digital economy node through Digital Economy Agreements and developing carbon trading and green financing hubs under the Singapore Green Plan 2030. Minister for Trade and Industry Gan Kim Yong also highlighted emerging prospects in biopharmaceuticals, logistics, and agri-tech, which address new demands in health, supply chain robustness, and food resilience. The government aims to maintain strong economic fundamentals and competitiveness to attract continued investment despite Singapore’s natural constraints as a small, resource-scarce nation.
Transcript
35 Mr Cheng Hsing Yao asked the Minister for Trade and Industry what are the economic opportunities for Singapore in an environment where COVID-19 is endemic.
Mr Gan Kim Yong: In an endemic COVID-19 environment, the virus will survive in our community, similar to common diseases like flu and chicken pox. With effective vaccination, testing and treatment regimes in place, fewer people will need hospitalisation or medication.
Economic activity will progressively normalise as we reopen the domestic economy and our borders. But the virus may continue to mutate, periodically leading to new variants and outbreaks. We have put in place measures to respond quickly to outbreaks, if necessary.
We have been working closely with the industry to enable us to seize opportunities when economic activity resumes, building on the momentum of our Industry Transformation Maps (ITMs) and recommendations from the Emerging Stronger Taskforce (EST).
For example, we will position Singapore as a critical node in the growing digital economy, by strengthening our connectivity in the digital economy through a network of Digital Economy Agreements (DEAs), platforms like Business sans Borders, and supporting more businesses to digitalise.
As part of the Singapore Green Plan 2030, we will also help our enterprises and workforce to harness sustainability as a competitive advantage, and develop innovative solutions for the green economy. For example, we aim to grow Singapore into a carbon trading and services hub, and a green financing hub.
COVID-19 has also surfaced new economic opportunities. For example, the increased focus on health and wellness could open up new opportunities in the biopharmaceutical sector, while the desire to build more robust supply chains could create new demand for our logistics companies. There are also new areas of opportunity in agri-tech, as we strive to strengthen our food resilience.
We can pursue these opportunities successfully only if we keep our fundamentals strong, and our economy competitive.
We must acknowledge our natural disadvantages as a small, resource-scarce economy. But our growth prospects need not be limited by our size and we can grow beyond these limitations, as evidenced by our pipeline of investments even during the pandemic. However, we cannot take our growth for granted, as other economies are fast raising their game.
An endemic COVID-19 situation will bring fresh opportunities to rebuild our competitive strengths and to develop new strengths. We hope to partner businesses and workers over the next few years in seizing these opportunities and emerge stronger together.