Singapore can leverage trust premium, crisis readiness for new growth opportunities: Chee Hong Tat

Straits Times

2 days ago

Minister for National Development Chee Hong Tat (right) and Nomura Asia-Pacific chief executive Nags Sankaranarayanan taking part in a fireside chat at the Nomura Investment Forum Singapore on June 4. PHOTO: NOMURA
SINGAPORE - Concerns are mounting that hiring in Singapore – especially of fresh graduates – may slow as investors and companies delay investment decisions amid ongoing uncertainty over US President Donald Trump's fluctuating tariff policies.
However, Singapore's reputation as a trusted financial hub will enable it to continue attracting global investments, talent and technologies, while a new task force to prepare companies and workers for volatility has positioned the Republic well to navigate the uncertainty, said Minister for National Development Chee Hong Tat on June 4.
Speaking at Nomura's annual investor forum at the Ritz-Carlton, Mr Chee, who is also deputy chairman of the Monetary Authority of Singapore (MAS), said that while it is understandable for companies to adopt a wait-and-see approach in the current environment, this could affect jobs if adopted on a broader scale.
'We are worried,' Mr Chee said, noting that a persistent slowdown could impact job opportunities for workers as well as students who are about to graduate.
Access to financing is also an emerging concern.
'There are companies who actually have viable businesses, products and services but, because of the uncertainty, may face more difficulties in drawing financing,' he said.
Mr Chee was responding to a question from Nomura Asia-Pacific chief executive Nags Sankaranarayanan on the impact of the US-China trade war on Singapore, and the Government's assessment of the situation.
He noted that Singapore's overall factory activity is now at its lowest levels in months, reflecting the concerns businesses have with regard to the more uncertain environment.
While there's still a need to provide support in weathering the current volatility, particularly in areas like financing and hiring, that alone isn't enough, Mr Chee said.
There is also a need for companies and workers to look ahead and be ready for a landscape with new challenges and opportunities.
The Singapore Economic Resilience Taskforce (Sert), announced in April, was set up for this purpose.
'We have a team that's looking at how to help companies and workers, how to provide some interventions on top of what we have already announced in the Budget earlier this year,' Mr Chee said.
Sert is also helping companies adapt to a shifting landscape by identifying emerging opportunities and potential challenges, as well as equipping workers with the skills required to stay relevant, he added.
Meanwhile, MAS has been consistently reviewing Singapore's rules and processes to identify the barriers to business, and improve the Republic's attractiveness to businesses and investors.
'We have new services, new business models, new requirements, and it's important for us to be able to keep up with these new changes and in doing so, improve our efficiency and reduce business costs,' Mr Chee said.
In wealth management, for example, the time taken for tax incentive applications by family offices has been 'significantly shortened', in response to industry feedback on the long processing time in the past, he said.
Efforts are also being made to deepen Singapore's capital markets, with MAS now seeking feedback on proposals to streamline disclosure requirements and broaden investor outreach channels during initial public offerings.
Asked further about how Singapore can maintain its competitiveness and resilience as a financial centre, Mr Chee noted that the Republic remains a stable, well-regulated and trusted hub for financial services and is more conservative than other economies.
However, he added that being overly conservative may mean missing out pockets of opportunities in new technologies, business models, products and services – areas that Singapore should be prepared to explore with the appropriate safeguards in place.
'This is is where balance needs to be struck, and for us, moving from where we are to where we want to be, my view is we can probably afford to take a little bit more risk, but not all the way, because we don't want to affect our overall reputation as a trusted, stable financial centre.'
Kang Wan Chern is deputy business editor at The Straits Times.
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