Economic Competitiveness
- changes over time... as the economic power of the neighouring countries (esp. those in Asia) rises
- for survival, 3 key areas: Globalised Economy, Diversified Economy, A creative and entrepreneurial nation
Key principles:
- prudent macroeconomic policies (ie. fiscal spending: disciplined)
- outward orientation (ie. globalisation)
- conducive environment (ie. stability and just)
- infrastructure: efficient & well-connected
- education and training
- eschew welfarism
5 key thrusts (ERC):
- Expand external ties - through trade liberalisation (eg. FTA)
- Manage competitiveness and flexibility - from direct to indirect taxes; land & rentals, electricity, telecommunications, manpower (eg. wages, CPF)
- Grow domestic enterprises and encourage entrepreneurship - (i) Enterprise continuum (ii) Enhanced Cluster Development (iii) Intellectual Capital (iv) Human Capital (v) Expanded Regionalisation
- Promote engines of Growth - manufacturing and services
- Develop human capital
Basically, Singapore relies on manufacturing and services for growth.