The Straits Times, Oct 14, 1991
By Mary Kwang, Phua Kok Kim and Chan Hwa Loon
REDEVELOPMENT of local enterprises, and economic strategies based on business clusters. These two approaches feature prominently in Singapore's long-term economic growth plan.
They are among the eight strategic thrusts in the Strategic Economic Plan (SEP) which also outlines programmes for coordinating agencies to translate them into action.
The other six are: Maintenance of Singapore's international competitiveness; enhancement of its human resources; expansion of teamwork among labour, business and the Government; building up of an international outlook in its firms and people; nurturing an innovation culture; and reducing economic vulnerability.
Referring to domestic industries, the Economic Planning Committee (EPC) which drafted the SEP found that they account for 9 per cent of the economic output, but hire 39 per cent of the workforce. It recommended improvement of their resource usage, development of economies of scale, and manpower retraining to make workers more efficient.
Task forces will also be set up to review the support given to domestic industries by government and other institutions, and how this can be enhanced. For instance, the SEP suggested the build-up of their technical capability and track record to help them compete for government contracts.
Recognising that industries do not operate in isolation and that linkages among certain industries can be so strong that one industry may lose its viability without the presence of the others, the EPC proposed that development plans be based at the cluster level rather than only at industry level.
To facilitate this, it has grouped 127 industries and services into 15 clusters, each overseen by a government agency. For example, airlines, hotels and aircraft repairs are grouped into a tourism cluster overseen by the Singapore Tourist Promotion Board.
One action programme recommended encouraging multinationals to get more closely involved in Singapore and to site their strategic control, marketing and more sophisticated technical functions here.
Recognising that it is sometimes costly or difficult to assemble resources in Singapore itself, the EPC proposed adopting a networking approach, such as the Growth Triangle concept, to tap resources located abroad.
It also pushed for talent scouting overseas and mid-career training or continuing education throughout the working life of an employee.
Copyright © 1998 Singapore Press Holdings. All Rights Reserved.
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