Policies on Private Sector Development

- Singapore Experience –

Session by : A/P Ken Pan Yancheng President

Trade & Industry Association (Singapore) 1

Skills, innovation and productivity the basis for sustaining Singapore’s economic growth.

Provide for inclusive growth - increase in the incomes of our citizens.

A vibrant and distinctive global city – open and diverse, the best place to grow and reach out to a rising Asia

And a home that provides an outstanding quality of life for our people.

2

High-Skilled People, Innovative Economy, Distinctive Global City

3 Broad Priorities

7 Strategies

3

Presentation Focus

①Boost Skills in Every Jobs

②Deepen Corporate Capabilities to Seize Opportunities in Asia

③Make Singapore a Distinctive Global and An Endearing Home

4

3 Broad Priorities

How to grow productivity by 2% to 3% per year over the next

decade?

National Productivity and Continuing Education Council

Improving efficiency and creating better jobs

Upskilling workforce at all levels

Raising the quality of the foreign workforce

5

1. Boost Skills in Every Jobs

The main areas of focus include:

Commercialising R&D as a key source of competitiveness

Developing market-based facilities to spur bank financing of cross-border trade and projects

Supporting stronger alliances between large and small players.

6

2. Deepen Corporate Capabilities to Seize Opportunities in Asia

Attracting and nurturing diverse pools of talent, both home-grown and global

Expanding and deepening opportunities to develop professional expertise and thought leadership in key areas of specialisation

Making Singapore a leading cultural capital

Providing the best quality of life in Asia

7

3. Make Singapore a Distinctive Global and An Endearing Home

Encourage enterprise innovation and investments in technology and training, both through broad-based and targeted sectoral approaches.

Introduce strong economy-wide fiscal incentives for companies to invest in productivity enhancement and innovation.

Set up a National Productivity Fund to provide grants to support industryfocused and enterprise-level productivity initiatives at the sectoral level.

Develop a national productivity knowledge base by establishing a Productivity and Innovation Centre for enterprises to tap on.

8

S1. Growing Through Skills and Innovation

9

Productivity & Innovation Credits PIC

Under the PIC Scheme, businesses can enjoy 400% tax deduction/allowance and/or 60% cash payout for investments made in any of the 6 qualifying activities from the Years of Assessment (YAs) 2013 to 2018.

From YAs 2013 to 2015, businesses can also enjoy a PIC Bonus. This is a dollar-for-dollar matching cash bonus capped at $15,000.

Boncafé International Pte ltd

One of the best known coffee brands in Southeast Asia.

Automate its production line, including the loading of coffee beans, roasting, packing and sealing processes.

Through these measures, it has increased the quality as well as quantity of its output, and reduced wastage due to human errors.

The number of pouches of ground coffee an employee can pack in an hour has increased from 12 to 360. This also resulted in a more satisfied workforce.

10

Example 1 of Enterprise Innovation

① Key base for global players seeking to tap into opportunities – A key global centre for high value manufacturing and services.

② Building on our physical and cultural connectivity to Asia and the world - market neutrality offers global businesses a strategic base.

③Grow opportunities in ASEAN, working together with our regional partners to realise the vision of a single market under the ASEAN Economic Community by 2015.

④ Build on our unique position as a city that can grow both high-value complex manufacturing and international services.

11

S2. Anchor Singapore as a Global-Asia Hub

Singapore has liberalised the domestic banking and insurance industries to greater foreign participation.

Singapore has also adopted a more open and consultative approach in its supervision and development of the financial sector, and

Singapore has shifted the emphasis from regulation to risk-focused supervision.

12

On becoming a world class financial centre

S3. Build a Vibrant and Diverse Corporate Ecosystem

S4. Make Innovation Pervasive, and Strengthen Commercialisation of R&D

S5. Become a Smart Energy Economy

S6. Enhance Land Productivity to Secure Future Growth

S7. Build a Distinctive Global City and an Endearing Home

13

Other 5 Stategies

Thank you for your Attention

13