SINGAPORE’S

ECONOMIC JOURNEY

22 April 2015

Prepared for delegation from Latvia

2

Singapore’s economic journey

Singapore

at a Glance

1

Our Approach

to Economic

Development

2

Looking into

the Future

3

3

Ministry of Trade and Industry

Economic

Development

Board

Standards,

Productivity

and Innovation

Board

International

Enterprise

Singapore

JTC

Corporation

Sentosa

Development

Corporation

Energy Market

Authority

Singapore

Tourism Board

Competition

Commission of

Singapore

Department

of Statistics

Agencies under Singapore’s

Ministry of Trade and Industry

Agency for

Science,

Technology

and Research

4

Singapore EDB

Grow Industry

Verticals

Enhance

Business

Environment

Attract Foreign

Investment

OUR GOAL

Shaping Singapore’s Economic Future

OUR VISION

A Global Leader, A Great City and a Home in Asia, for Business,

Innovation and Talent

OUR MISSION

We create, for Singapore, sustainable economic growth and vibrant

business and good job opportunities

5

Singapore

at a Glance_

6

Our economic journey

Employment

Skills

Development

Engineering/

Capital-

Intensive

Technology-

intensive/

Services

Knowledge/

Innovation

60s 70s 80s 90s 2000s

GDP per capita: S$1,310

Unemployment: 13.5% GDP per capita: S$65,048

Unemployment: 1.8%

5000

10000

15000

20000

25000

30000

35000

40000

1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012

GD

P/C

ap

ita (

US

$)

7

Manufacturing & services :

twin engines of growth for Singapore

Electronics

Transport Engineering

Chemicals

Biomedical Sciences

Precision Engineering

MANUFACTURING

Logistics

Healthcare

Professional Services

Infocomms & Media

Consumer Businesses

SERVICES

Space Technology

Safety and Security

Visual & Performing Arts

Water & Environmental Technologies

International Non-Profit Organizations

NEW AREAS

8

2014(p) Total Output in Manufacturing Sector: S$304 billion (US$240 billion)

Electronics

27.2%

Chemicals

34.1%

Biomed

Mfg

7.1%

Precision

Eng

12.2%

Transport

Eng

11.1%

General

Mfg

Industries

8.3%

US$1.00 = S$1.2671 (p) = preliminary Source: EDB RSU Census & Surveys

Manufacturing 18.4%

Financial & Insurance

12.5%

Business Services 15.8% Wholesale & Retail

17.5%

Transport & Communications

10.9%

Construction 5.1%

Others 19.8%

2014 GDP: S$390.1 billion (US$308 billion)

2014 GDP growth: 2.9%

2015 GDP growth forecast: 2.0% to 4.0%

Source: Economic Survey of Singapore 2014

http://www.mti.gov.sg/ResearchRoom/Pages/Economic-Survey-of-

Singapore-2014.aspx

Singapore’s Economic Structure

9

• 37,400 international

companies, including

3,200 from China, 4,400

from India, 7,900 from

ASEAN (ex-Singapore)

• >7,000 MNCs, 60% with

HQ functions

Best Labour Force

Source: BERI’s 2011 Labour Force Evaluation

Source: The Global

Competitiveness Report 2011-

2012, World Economic Forum

Strong IP Protection Asia’s best country to work in

Source: The Global Competitiveness Report 2011-12, WEF

Ease of Doing Business

Source: Doing Business 2012 Report,

World Bank

54 years of economic development

10

A global leader in manufacturing

Singapore’s

prowess in

manufacturing

is evident from

our leadership

in several

areas

Asia #1

Oil Field

Equipment

Manufacturing &

Services

Most

Comprehensive

& Largest

Aero MRO Hub

in Asia

Asia #1 World #3

Global Oil

Refining Centre

Hard Disk Media

40% World

Market Share

Offshore Oil-

rigs

70% World

Market Share

FPSO*

Conversion

70% World

Market Share

Global Leader Global Leader Global Leader

Semicon Wafer

Foundry

10% World

Market Share

Ship Repairs

20% World

Market Share

Hearing Aids

30% World

Market Share

Global Leader Global Leader Global Leader

*FPSO –

Floating

Production

Storage &

Offloading

vessel used in

oil production

11

Our Approach to

Economic

Development_

12

Conducive business environment

– Excellence, reliability, transparency and honesty

– Harmonious industrial relations

– Meritocracy and individual self-reliance

Prudent macroeconomic policies

– Disciplined fiscal spending

Integrated infrastructure

Education and Training

Outward-orientation

– Embrace globalisation, opening market to competition

– Attract foreign investments and talents

Source: World Bank “Doing Business 2013”

Ease of Doing Business

2013 Rank Economy

1 Singapore

2 Hong Kong

3 New Zealand

4 United States

5 Denmark

6 Malaysia

7 Korea, Rep.

8 Georgia

9 Norway

10 United Kingdom

11 Australia

12 Finland

13 Iceland

14 Sweden

15 Ireland

Core economic principles

13

Excellent physical and trade connectivity

LOGISTICS One of world’s top sea and air hub

High Connectivity SEA: 200 lines linked to 600 ports in 123 countries

AIR: 200 cities linked by 5,400 weekly flights

21 out of 25 Top third-party logistic providers

High Reliability “Right ship on time or even ahead”

ACCESS Asia through Singapore

Excellent Business Infrastructure +

Connectivity

ASEAN 5+ FTA

SINGAPORE ASEAN

India China Korea

Japan Substantial tariffs savings through apparel-related HS codes

Leverage

New Zealand

Australia

FREE TRADE AGREEMENTS Most extensive, covers 60% of world’s GDP

14 Source: http://www.iras.gov.sg/irasHome/page.aspx?id=812

Extensive network of DTAs and IGAs

Investment Guarantee Agreements (IGAs) >40 in Force

Double Taxation Agreements (DTAs) >70 in Force

Source: http://app.mti.gov.sg/default.asp?id=2785

15

Physical infrastructure to support

a strong industry ecosystem

N

Changi & Loyang

Aerospace Parks

Jurong Island

Petrochemical Complex

Seletar Aerospace Park Causeway

26 miles (42 km)

14

mile

s (

23

km

)

Wafer Fabrication

Park

Offshore Supply

Base

Wafer Fabrication

Park

Tuas Biomedical

Park

One North Biopolis

• Integrated chemical complex

reclaimed from 7 islands

• Proximity to customers/ suppliers

• Over S$30 billion capital investment

attracted

• Integrated R&D complex with

“plug and play” facilities

• Co-location of public and

private R&D labs

16

Public R&D ecosystem

• 14 renowned research institutes (RIs)

• 5 world-class universities, of which 3 have a strong

technological research focus

• 30,000 research scientists & engineers in Singapore

across the public and private sectors

Information & Communication Technology

Electronics

IMCB

Inst of Molecular

& Cell Biology IME

Inst of

Microelectronics

IHPC

Inst of High

Performance

Computing

IMRE

Inst of Mat’ls

Research &

Engrg

SIMTech

S’pore Inst of

Mfg Tech

DSI

Data Storage

Inst

BTI

Bioprocessing Technology

Institute

GIS

Genome Inst of S’pore

IBN

Inst of BioEngrg and

Nanotechnology

IMB

Inst of Medical Biology

SICS

S’pore Inst of Clinical

Sciences

ICES

Inst of Chem &

Engrg

Sciences

BII

BioInformatics

Inst

Chemicals, Materials & Environment

Bio-medical Sciences

IIR

Institute for

Infocomm

Research Manufacturing &

Automation

17

Building a Pipeline of Industry-Relevant Talent

6 business schools or programmes in Financial Times top 10

2 in 5 post-secondary students graduate with S&T qualifications

18

Looking into

the Future_

19

Emerging Opportunities in Asia

Rise of Asia

Long term growth drivers remain

valid

Southeast Asia - a key engine

Global growth driven by emerging Asia

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Advanced economies

Emerging Asia

Other EM and developing countries

Global growth (3-year moving average)

Source: IMF Regional Economic Outlook

Affluence The global middle class will more than double by 2030 Source: Burgeoning bourgeoisie, The Economist

Urbanization Number of people in urban areas exceeded those in

rural areas for the first time in 2010 Source: United Nations

Health & Aging The number of older persons is expected to exceed the

number of children for the first time in 2047. Source: UN World Population Ageing 2007 report

Source: Carnegie Endowment

Strong base for consumer growth

•Population of over 600m by 2015

•Middle class growing from 40m in 2010 to 85m by end of

2017 Source: Economist Corporate Network

ASEAN Economic Community 2015

Aiming for a single market and production base

20

H4B secures

businesses with

the mandate to

resource

opportunities

H4I seeds ideas

for potential new

businesses

H4T builds the necessary talent pools to

create successful businesses

Building Singapore as a Home for Business, Innovation and Talent

is about the Clusters

that we have built up in CKI industries based on

our core fundamentals of Trust, Knowledge,

Connected and Life

Positioning Singapore for the Future

the big ideas key initiatives the proof

21

Global leader in the design and manufacture

of semiconductor assembly equipment(US)

Full-fledged global headquarters and equipment

R&D and manufacturing site

Consumer products industry giant (Europe)

HQ for Asia, East & Central Europe, Africa and

the Middle East; ‘Four Acres’ global leadership

development centre

World’s leading equipment supplier to the semiconductor, flat

panel display and solar photovoltaic industries (US)

Semiconductor equipment manufacturing facility will serve as a

strategic hub to manage its Asian market

Capitalising on Asia’s Growth from

Singapore Is about the Clusters that we have built up in

industries based on our core fundamentals of

Trust, Knowledge,

Connected and Life

22

Home for Innovation

Public sector capabilities and

Singapore’s needs as impetus

for industry to co-create

tomorrow’s solutions today

from Singapore for Asia >>>

Singapore as the

“Living Laboratory”

Is about the Clusters that we have built up in

industries based on

our core fundamentals of

Trust, Knowledge,

Connected and Life

23

COMPANIES’ KEY TALENT CHALLENGES

Is about the Clusters that we have built up in

industries based on

our core fundamentals of

Trust, Knowledge,

Connected and Life

Home for Talent

Talent

An engine for economic

growth

Business Activities

Innovation

• Attract talent

• Develop talent

• Manage talent

• Find solutions for their human

capital needs

#2 Lack of Global Leaders with Asian Perspectives

#3 Lack of Capabilities in Talent Management

for Asia

#1 Global War for Talent

Vision: Singapore

as a place where companies

harness global talent

to drive business and innovation

for Asia and the world

24

Home for Innovation Future-ready solutions for

Global and Asia markets

Home for Talent Global talent for Asia, and Asian

talent for global readiness

Home for Business Global-Asia Value Propositions

& Pan-Asian Integrator

Launchpoint for Asian Enterprises to Regionalise & Internationalise

First & Essential Base in Asia for Global SMEs

Home in Asia for MNCs

Singapore as the leading Global Business City in Asia

Global/International/Asian HQs, Control Towers, Differentiator Activities

Putting it all together

EDB provides this presentation (including oral statements) gratuitously for

information only and not for any other purpose. EDB does not warrant the

accuracy, completeness nor suitability for purpose of any information in this

presentation. EDB excludes all liability including but not limited to inaccuracies,

incompleteness or lack of suitability for purpose of any information in the

presentation.

Thank You