<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published May 29, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Economic Review Committee's aims achieved: Hng Kiang
New economic strategies panel to identify future growth areas
By UMA SHANKARI
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SINGAPORE has achieved many of the aims set by the Economic Review Committee (ERC) - which was set up in 2001 to promote the growth and development of the economy - Minister for Trade and Industry Lim Hng Kiang told Parliament yesterday.
He was giving a review of Singapore's economic performance over the past eight years after the government on Wednesday said that it will set up a new unit - the Economic Strategies Committee - to study the long-term economic transformation of Singapore.
From 2001-2008, Singapore has grown faster than other developed economies and regional economies while enjoying lower inflation, Mr Lim said.
The committee had estimated that the Singapore economy had the potential to grow by an average 3-5 per cent a year. 'Indeed we have enjoyed better growth than that, at about 6 per cent per annum between 2001 to 2008,' Mr Lim said.
Even if this year's expected negative growth was to be included, Singapore would have still grown by 4-5 per cent a year on average since 2001. Singapore's GDP was $153 billion in 2001. In 2008, it was $257 billion.
Mr Lim also said that a decision had been made to keep manufacturing as a key sector of the economy. Manufacturing made up 20-25 per cent of the economy since 2001.
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</TD></TR></TBODY></TABLE>However, there have been changes within the manufacturing sector. In line with the ERC's recommendations to diversify the manufacturing sector here, Singapore has significantly expanded its biomedical services sector.
Hitching on to external demand has also allowed Singapore to enjoy higher income growth over the last eight years. While that has meant that Singapore's growth strategy has been more volatile than other countries', it also means that growth will be higher on average than if just domestic demand has been mainly relied upon.
Over the last eight years, Singapore has benefited from very strong global growth, and external demand has grown by 10 per cent - twice as fast as domestic demand. 'If we had not pursued an export-led growth model, we would have foregone a significant amount of growth over the past eight years,' Mr Lim said.
Singapore's growth has been driven by a balance of foreign and local firms as well as small and medium enterprises (SMEs) and larger companies. Said Mr Lim: 'Our economy, in fact, is as diversified as it can be.'
The current larger foreign share of the GDP is due to the country's success in attracting more foreign companies to set up here. Companies are now coming here from new markets such as China, India and the Middle East.
But not all industries are dominated by foreign multi-national corporations (MNCs), Mr Lim said. There is a good representation of local players in the transport engineering, precision engineering and general manufacturing clusters. Local players are also very active in the services sectors. The government is committed to growing local companies, he said.
As the current economic upheaval settles into a new global landscape, Singapore will need to invest in the capabilities of its individuals and companies to seize new growth opportunities that will become more prominent.
'We have a very big task ahead of us with the ESD (Economic Strategies Committee) and its set of objectives,' Mr Lim said. 'More importantly, we need to understand the structure of our economy, the opportunities and also the constraints that we face if we want to develop a pragmatic and positive strategy for Singapore.'
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Economic Review Committee's aims achieved: Hng Kiang
New economic strategies panel to identify future growth areas
By UMA SHANKARI
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
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</TD><TD>Feedback</TD></TR></TBODY></TABLE>SINGAPORE has achieved many of the aims set by the Economic Review Committee (ERC) - which was set up in 2001 to promote the growth and development of the economy - Minister for Trade and Industry Lim Hng Kiang told Parliament yesterday.
He was giving a review of Singapore's economic performance over the past eight years after the government on Wednesday said that it will set up a new unit - the Economic Strategies Committee - to study the long-term economic transformation of Singapore.
From 2001-2008, Singapore has grown faster than other developed economies and regional economies while enjoying lower inflation, Mr Lim said.
The committee had estimated that the Singapore economy had the potential to grow by an average 3-5 per cent a year. 'Indeed we have enjoyed better growth than that, at about 6 per cent per annum between 2001 to 2008,' Mr Lim said.
Even if this year's expected negative growth was to be included, Singapore would have still grown by 4-5 per cent a year on average since 2001. Singapore's GDP was $153 billion in 2001. In 2008, it was $257 billion.
Mr Lim also said that a decision had been made to keep manufacturing as a key sector of the economy. Manufacturing made up 20-25 per cent of the economy since 2001.
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Hitching on to external demand has also allowed Singapore to enjoy higher income growth over the last eight years. While that has meant that Singapore's growth strategy has been more volatile than other countries', it also means that growth will be higher on average than if just domestic demand has been mainly relied upon.
Over the last eight years, Singapore has benefited from very strong global growth, and external demand has grown by 10 per cent - twice as fast as domestic demand. 'If we had not pursued an export-led growth model, we would have foregone a significant amount of growth over the past eight years,' Mr Lim said.
Singapore's growth has been driven by a balance of foreign and local firms as well as small and medium enterprises (SMEs) and larger companies. Said Mr Lim: 'Our economy, in fact, is as diversified as it can be.'
The current larger foreign share of the GDP is due to the country's success in attracting more foreign companies to set up here. Companies are now coming here from new markets such as China, India and the Middle East.
But not all industries are dominated by foreign multi-national corporations (MNCs), Mr Lim said. There is a good representation of local players in the transport engineering, precision engineering and general manufacturing clusters. Local players are also very active in the services sectors. The government is committed to growing local companies, he said.
As the current economic upheaval settles into a new global landscape, Singapore will need to invest in the capabilities of its individuals and companies to seize new growth opportunities that will become more prominent.
'We have a very big task ahead of us with the ESD (Economic Strategies Committee) and its set of objectives,' Mr Lim said. 'More importantly, we need to understand the structure of our economy, the opportunities and also the constraints that we face if we want to develop a pragmatic and positive strategy for Singapore.'
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