Mr. John De Payva, President, NTUC
Mr. Alexander Melchers, Vice-President, Singapore National Employers Federation (SNEF)
Mr. Tony Chew, Chairman, Singapore Business Federation (SBF)
Mr. Leo Yip, Permanent Secretary, Ministry of Manpower (MOM)
Tripartite partners, comrades, ladies and gentlemen
Good morning.
We live in a fast changing world. We also live in a very inter-connected world. Just a month ago, the world’s focus on China is about the Beijing Olympics. Now, it is the melamine food scandal and how that is affecting so many countries around the globe. Not so long ago, the sub-prime problem in the US housing market and the bail out of Bear Stearns and other US investment banks seemed quite remote to most Singaporeans, but the failure of the almost 200-year-old Lehman Brothers and the knock-on effect that has had on structured financial products bought and sold here made clear that physical distance is no guarantor either of opportunity or of safety.
In the midst of bail out plans, investigations, inquisitions and finger-pointing, one common pattern emerged.
And it is simply this: when short-term thinking and gain fuel reckless risk-taking and overtake good sense and basics, the longer term will be jeopardised. This is the financial and economic equivalent of losing one’s balance, stumbling and falling, and breaking the hip. In every such instance, hospital stay and surgery become necessary. Some patients never make it through.
What can we do in the face of such a development?
Be Realistic. We cannot avoid being part of this world.
Be Resilient through a systems approach and sound regulatory regimes.
Build on Relationships that have strategic value.
Be Realistic
Whether we like it or not, Singapore is part of this global economic and financial system. Indeed, we make a living through being relevant to this system. This being the case, whatever happens in the global system will affect us. The question is how much will we be affected, and in what areas.
As it is, the data coming out of US, Europe, Japan, China and India are pointing to rougher times ahead. Singapore’s economy is showing signs of slowing down, in tandem with the world economy. The MTI has previously revised the full-year GDP forecast from the earlier 4.5%-6.5% to 4%-6%. The latest forecast will be released tomorrow, and that will give us a clearer gauge of the direction and pace of the economy in the coming quarters.
Meanwhile, the headlines of The Straits Times dated 6 Oct 2008 says “Economy may slow for “several quarters””, while that of the Business Times of the same day said, “Slowdown to last several quarters”. Both newspapers were reporting on the comments made by the Finance Minister Mr. Tharman Shanmugaratnam at a community dialogue the day before.
As we come to terms with the reality of the situation, we need no longer waste time hoping to be miraculously shielded from the financial turmoil that is unfolding globally, or from its economic consequences. Instead, we can choose to take positive and productive action to deal with the challenges ahead.
Be Resilient
From time to time, tremors arising from earthquakes in nearby places affect parts of Singapore. Residents feel those tremors and are worried whether their homes are safe. Their anxiety is assuaged only when reassured that the buildings they live in have been checked and ascertained to be structurally sound and able to withstand tremors of the magnitudes experienced.
In like manner, investors, depositors, companies and workers also worry when the economic typhoons hit, and wonder if the systems and structures would be able to withstand the beating.
Reporting on the Finance Minister’s comments at the community event mentioned earlier, the Lianhe Zaobao’s headline read, “Tharman: Singapore's three strengths will help us tide over crisis”.
What are these 3 strengths? They are the still low unemployment rate, the diversified economy and the strong fiscal position of the Government.
Armed with these 3 advantages, and aided further by a relatively strict financial regulatory regime, Singapore is in a better position than many other countries to tackle the difficulties. This attests to the resilience that has been painstakingly built into the economic management of Singapore. This is a source of confidence for all who have a stake in Singapore’s future.
While the Government will continue to do its part in managing the macro environment, it is imperative that companies, unions and workers also do their part to strengthen the foundations and limit the fallout. The more alert and systematic companies can be in prospecting for demand and seizing opportunities, in gearing their operations to be flexible, in containing all aspects of costs, in training their manpower to be more adept and adaptable, and in working with their unions to upkeep morale, the better they and their workers will do amid the changes. Ensuring steady competitiveness and company resilience is an “inside job” that every enterprise, in every industry and sector must undertake. It cannot be left to the Government or outsourced to others. Nor should it be left to last minute knee-jerk reactions.
Build strategic Relationships
What then is the best way for companies to conduct this “inside job” to enhance competitiveness and maximize job security and opportunity for workers?
The short answer is not to do it alone when you can have strong strategic partners to do with together.
The strategic value of the Singapore brand of tripartism, and the progressive way in which the Labour Movement here has practised industrial relations is a core and enduring part of our competitive advantage as a country. More investments and jobs are made possible because of this. More disputes and difficulties are resolved because of this. More improvement and adaptation are enabled and sustained because of this.
The past two years have seen many companies and their unions jointly embark on key initiatives in skills upgrading, job recreation, re-employment, best sourcing, bring women back-to-work and so on.
The achievements in these areas reflect the trust, mutual respect and mutual gain that is so important to nurture and upkeep in strategic relationships. We must continue to invest in this.
Today’s Seminar will give participants from all three sides of the tripartite relationship yet another chance to meet and discuss issues of mutual interest and concern, and to forge a common understanding and consensus as we move ahead.
I wish you all a fruitful time together.
Thank you.
