PUBLISHED ONFebruary 16, 2021 7:41 AMByFiona Lam
The Singapore government will allocate $24 billion over the next three years to enable firms and workers in the country to emerge stronger in the face of structural changes in the global economic landscape.
This amount will go into building three enablers for the country's next phase of transformation, and is part of this financial year's Budget, said Deputy Prime Minister and Finance Minister Heng Swee Keat on Tuesday.
The three aims are: To grow a vibrant business community that is deeply connected with Asia and the world; to catalyse a wide range of capital for businesses to transform and scale; and to create opportunities and redesign jobs for people to develop their skills, creativity and talents.
The business community should also develop a strong spirit of innovation and enterprise, Mr Heng said in Parliament.
Aside from devoting significant resources to preserve lives and livelihoods amid the pandemic, what will continue to distinguish Singapore are its investments for the future.
"We will invest in our people so that they can bounce back and be ready for opportunities that arise, and we will invest in our businesses so they can innovate, build deep capacities and seize growth opportunities," Mr Heng added.
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The $24 billion allocation builds on the momentum of a transformation push that began five years ago, when the Industry Transformation Maps were launched.
It also complements the new Covid-19 Resilience Package, which will address the country's immediate needs.
Mr Heng noted that the post-Covid-19 global economic landscape is being reshaped and remains uncertain.
Major shifts around the world that can affect Singapore include the changing competitive landscape, rising inequalities and the importance of sustainability.
"To stay on top of these changes, we must stay alert and bring all stakeholders together swiftly to respond to and seize the diverse opportunities," Mr Heng said.
Therefore, while last year's Budgets were tilted towards emergency support in a broad-based way, this year's Budget focuses on accelerating structural adaptations.
Singapore must move from just countercyclical fiscal and monetary stabilisation policies to structural economic policies to equip the Republic's businesses and workers with deep and future-ready capabilities, Mr Heng said.
This article was first published in The Business Times. Permission required for reproduction.