PM: Connectivity key to propelling SG economy forward

Singapore's economy will grow by staying plugged into the world, said Prime Minister Lee Hsien Loong.

Staying connected to the external world will help attract investment and talent to Singapore, he said in a statement. This will also encourage Singaporean enterprises to diversify, expand and move abroad. Therefore, creating jobs and opportunities for Singaporeans.

PM Lee Hsien Loong said that Singapore should take advantage of Asia, especially China and India. He also emphasized that Singapore must pursue ASEAN projects so that ASEAN countries will make Singapore more attractive compared to China and India.

To further improve life of Singapore's citizens, PM Lee said that Singapore must transform and upgrade the economy. According to him, Singapore's objective is to raise incomes across the board, including middle-income households, and those at the lower end. This will not be achieved by just expanding the economy, but by upgrading productivity. This includes re-training the existing workforce, educating future workers for the new economy, and restructuring our industries.

PM Lee also mentioned that Singapore must buffer its economy against volatility and storms by accumulating adequate reserves. This will be achieved by maintaining fiscal prudence, strong reserve position, sound financial system and robust institutional framework. He added that Singapore must invest its reserves prudently with a long term view.

"Reserves helped Singapore weather the global economic crisis –we funded fiscal packages by drawing S$4 bn from reserves, and maintained confidence in the S$ and the banking system with the backing of much larger amounts in the reserves," said PM Lee.

GIC plays a key role in safeguarding and growing Singapore's reserves. This is to ensure that Singapore have sufficient ammunition to tackle future crises and meet long-term spending needs.