Pointing out that the current global environment is “very uncertain”, Mr Wong said that it has become more about “zero-sum competition” rather than “win-win cooperation”, and this will disadvantage small and open economies like Singapore.
“We have to be prepared for tougher competition and do what we can to stay in the game,” he added.
And this is why the government announced a S$3 billion top-up to the National Productivity Fund, to provide “extra firepower” to stay competitive and attract investments, said Mr Wong.
The fund was established in 2010 to support initiatives to improve productivity and train workers.
“We are taking steps to strengthen our infrastructure, enhance our enterprise ecosystem, as well as our innovation and technology engines. And these moves will translate eventually and ultimately to better jobs and better opportunities for all Singaporeans,” he added.
The authorities will also make “proactive moves” to ensure Singapore remains a reliable and trusted partner in global trade and commerce, said Mr Wong.
“In today’s fragmented world, we must work even harder to stay open as a hub where businesses from all over the world can operate with assurance and confidence,” he added.
SOCIAL SPENDING EXPECTED TO GROW
Even with a strong and growing economy, day-to-day realities for Singaporeans may be different, said Mr Wong.
“Life in a compact city like Singapore with no hinterland can be competitive and it can be stressful, something which members on both sides of the house were quick to bring up in their speeches over the last two days,” he said.
He noted that there have been calls for the government to make “bolder moves” on social policies.
He said that around the world, there are many examples of social support arrangements that started with the best of intentions but only ended up with more problems.
For example, some jurisdictions offer universal health care but now face rising costs and an overburdened healthcare system.
“To be clear, this is not about government spending,” said Mr Wong.
“We are prepared to spend more where necessary, but it’s equally, if not more important to get the policies right and to ensure the overall system is fiscally sound and sustainable.”
He said that “key pillars of our social system and our social compact” are being progressively strengthened.
