Welcome to The Ministry of Trade

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SINGAPORES ECONOMIC PLANNING
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Economic Planning in Singapore

• No National Agency for Economic Planning
• Emphasis on Robust Policy-Making Practical
  Application

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ECONOMIC STRATEGIES
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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

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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

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(1) Expanding External Ties Promoting Trade
Expanding External Ties
Free open international trading environment
FTAs
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(2) Managing Our Competitiveness and Flexibility

• Shift from Direct to Indirect Taxes
• Refocusing CPF
• Flexible Labour Market and Wages
• Competitive Factor Pricing

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(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
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(3) Growing Domestic Enterprises
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(4) Promoting Twin Engines of Growth -
Manufacturing

• Manufacturing
• Upgrading Existing Clusters
• Developing Capabilities in Emerging Technologies

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(4) Strengthen Industry Clusters
Entire Value Chain
Value
Value Chain
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(4) Developing New Capabilities
2004 Contribution to Manufacturing Value-Added
Total Manufacturing Value-added US28 billion
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(4) Promoting Twin Engines of Growth - Services

• Services
• Upgrading Established Areas
• Promotion of Promising New Areas
• Ministerial Committee on Services

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(4) Services Sector Contribution to GDP Growth
Percentage Contribution to Growth
1976-1980 1981-1985 1986-1990
1991-1995 1996-2000 2001-2004
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(4) Further Develop our Services Sector
(Services share of GDP)

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(5) Develop Human Capital

• Equipping Singaporeans with Skills and Know-How
• Develop Global Outlook
• Welcoming Global Talent
• Singapores Overseas Network

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(5) Develop Human Capital Investment in RD
activity
RD Personnel per 1000 people
GERD ( of GDP)
Source IMD World Competitiveness Yearbook 2005
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(5) Develop Human Capital Improving Educational
Profile
( with university-level education)
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
MALAYSIA University level covers all academic
education after form 5 SOURCE NATIONAL SOURCES,
OECD
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(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)

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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

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