Singapore Revises Regulations to Enhance Global Competitiveness: PM Wong

Prime Minister Lawrence Wong emphasised that Singapore will minimise regulatory burdens to help businesses innovate and manage costs amid rising global competition. Speaking at the National Day Rally on August 18, Wong acknowledged Singapore's success in maintaining a business-friendly environment but noted that regulations have sometimes become excessive.

Representative image

Reviewing Regulations to Foster Innovation

Wong stressed the need for periodic reviews of rules and processes to ensure they remain relevant. "Every few years or so, we have to do a thorough and proactive review of our rules and processes, and prune them back where possible," he said. He highlighted that the next phase of economic development would be more challenging due to a changing global landscape.

The Prime Minister pointed out that developed countries are now focusing on rebuilding their critical industries and reshaping global supply chains. "People used to say ‘invented in California, made in China’ – you get the best of both worlds. That era is over. Now the slogan is: ‘invented in California, made in the USA,’" he remarked.

Global Economic Shifts

Wong noted that developing countries are also advancing rapidly to avoid being left behind. "China has its ‘Made in China 2025’ strategy. It too wants to be technologically self-reliant, and to dominate the industries of the future," he said. These shifts have significantly altered the global economic environment.

To stay competitive, Singapore is investing heavily in research and development, new infrastructure, and technologies. Wong mentioned that these strategies are proving effective. "I’ve met many CEOs of multinational enterprises in recent months. They are all keen to grow their presence here. Because in this troubled world, they see Singapore as a stable, reliable and trusted partner," he stated.

Investment Surge Amid Global Tensions

In recent years, Singapore has experienced a surge in investment commitments from global players across various industries, including semiconductors and pharmaceuticals. These investments aim to mitigate the impact of intensifying trade and technology competition between major global powers.

Wong also addressed the potential risks associated with relaxing some regulations. "Relaxing some rules also means accepting more risks, and Singaporeans need to understand and support these changes," he said. Deputy Prime Minister Gan Kim Yong will lead an inter-ministerial review committee to oversee this process.

Supporting SMEs Through Regulatory Easing

The committee, announced earlier in 2024, includes Senior Minister of State Low Yen Ling and ministers K. Shanmugam, Chee Hong Tat, Tan See Leng, and Desmond Lee. Wong expressed confidence that easing regulations would benefit businesses, especially small and medium-sized enterprises (SMEs). "I am sure this will improve things, and I hope this will go some way in helping businesses, especially our SMEs small and medium-sized enterprises," he said.

Wong concluded by highlighting that reducing regulatory burdens is part of broader efforts to nurture innovation and enterprise in Singapore. These initiatives are essential for transforming the economy to meet new challenges effectively.

The Prime Minister's address underscored the importance of adapting policies and attitudes to maintain Singapore's competitive edge in a rapidly evolving global market.