A general answer would be to tap the entrepreneurial spirit of Singaporeans. For too long our economy has hinged on two things: MNCs/GLCs, and rentier activity like property and financial speculation. SMEs contribute only 30% of the GDP, unlike HK, Taiwan and Korea where SMEs account for more than 70% of the economy and 90% of jobs.
Lower the cost of doing business. One place to start would be to revamp land pricing. Another would be to remove onerous indirect taxes.
Reform the education system to produce thinking creative adults who will segue into the knowledge economy and drive innovation and design rather just be producers and manufacturers.
Early Singapore was built on the backs of enterprising Singaporeans, especially the Chinese and Indians. The qualities are still there, we just need the right environment to bring them out.
All sounds good in principle but what exactly will bring home the bacon and create sufficient well paying jobs to the extent that everyone can enjoy a middle class existence.
If the population is kept to within 1.5 to 3 million it means there is no critical mass for vibrant domestic economy so it will have to export driven.
This means that Singaporeans have to collectively creative, innovative or skilled enough to sell either products or services to the rest of the world at a competitive price.
What can Singapore produce that other countries aren't as good at? What services can Singapore render which the rest of the world cannot deliver as effectively or as competitively?
Airy fairy talk is easy but if we get down to the nuts and bolts the devil is in the details.
NZ has its dairy, forestry and tourism.
OZ has commodities so the economy goes up and down depending upon commodity demand.
Switzerland has its watch industry, luxury goods etc that nobody can match in terms of prestige but demand has been dropping.
What would Singapore's bread and butter have to be in order keep humming along as a wealthy first world country.
Forget about the past. If Singapore Inc was rebooted today, what would the new PM start working on tomorrow?
LKY had a clear vision... bring in the MNCs and it worked spectacularly well for 2.5 decades. All my wealth was built on the back of LKY and his EDB team's efforts. The new PM would need the same clear vision. What would it be?