Alliance for Action on Business Competitiveness Report: Driving Policy Adjustments for Enhanced Economic Growth
The Alliance for Action (AfA) on Business Competitiveness, a collaborative task force initiated by Singapore’s Ministry of Trade and Industry (MTI) and the Singapore Business Federation (SBF), recently launched its comprehensive report following a nine-month industry review. The report, introduced by Deputy Prime Minister Gan Kim Yong, outlines 27 key recommendations aimed at addressing critical challenges in manpower, land, and regulatory frameworks to foster enterprise transformation and boost Singapore’s economic competitiveness.
The AfA’s creation was driven by SBF’s Budget 2024 recommendation to explore avenues for maintaining business competitiveness amid an increasingly complex global economic landscape. Co-chaired by Senior Minister of State for Trade and Industry Low Yen Ling and SBF Vice Chairman Mark Lee, the AfA’s mission was to develop actionable recommendations for policy reform that would strengthen Singapore’s position as a pro-enterprise, highly competitive economy.
Key Highlights
– Three Pillars of Focus: The report’s recommendations are divided across three main pillars—Manpower, Land, and Regulations—each tailored to address unique challenges and opportunities.
– Extensive Consultation Process: Over nine months, the AfA engaged more than 100 business leaders, 13 Trade Associations and Chambers, and 17 public sector agencies, integrating insights from focus groups and written feedback.
– Public-Private Collaboration: The initiative is a testament to Singapore’s commitment to collaborative policymaking, with both government and private sector representatives jointly contributing to the development of transformative policies.
Pillar 1: Manpower – Enhancing Workforce Resilience and Skills
The AfA’s manpower recommendations focus on building a resilient, skilled workforce capable of supporting Singapore’s long-term economic ambitions. Key recommendations include:
1. Maximizing Local Talent: Initiatives to support enterprise and workforce transformation in tandem, utilizing untapped labor pools and creating pathways for leadership roles among local professionals.
2. Expanding Foreign Workforce Access: Expanding the Non-Traditional Sources (NTS) Occupation List to allow access to higher-skilled foreign workers and increasing workplace integration initiatives.
3. Streamlining Manpower Regulations: Simplifying migrant worker onboarding processes and reviewing primary care requirements for specific sectors to lower business costs and improve regulatory efficiency.
Pillar 2: Land – Optimizing Industrial Space and Lease Flexibility
The AfA’s land recommendations address the constraints of limited industrial space and high property costs, which impact business productivity and growth.
1. Extended Lease Tenures: Increasing lease tenure for greenfield land and offering flexible renewals for businesses that demonstrate productivity and job creation.
2. Industrial Land Intensification: Allowing potential relocation to redeveloped sites and raising the subletting cap for companies that invest in land intensification efforts.
3. Supporting Overseas Expansion: Enhancing infrastructure support for businesses considering regional expansion, positioning Singapore as a base for international growth.
Pillar 3: Regulations – Facilitating a Pro-Innovation, Sustainable Transition
The AfA’s regulatory recommendations emphasize the need for streamlined regulations that support innovation and sustainability, specifically in green technologies and fire safety measures.
1. Green Transition Support: Adopting a whole-of-government approach to promote solar deployment, electric vehicle adoption, and green infrastructure incentives.
2. Enhanced Fire Safety: Encouraging the use of cost-effective fire-safety alternatives for solar panel installation and promoting Energy Storage Systems (ESS) adoption.
3. Building Process Streamlining: Streamlining regulatory and approval processes for construction projects to reduce costs and simplify compliance, particularly in the built environment sector.
Case Study: SICK Product Center Asia’s Integration at Woodlands North Coast
A notable example of land optimization and business productivity is SICK Product Center Asia, a subsidiary of Germany’s SICK AG, specializing in sensor technologies for automation. By relocating to Woodlands North Coast, SICK expanded its R&D capabilities while situating its manufacturing operations in Johor Bahru. This setup enables SICK to integrate its competencies across the region effectively. With access to flexible zoning, SICK has been able to increase its workforce with high-skilled staff, highlighting the impact of strategic land use on enterprise growth.
Recommendations at a Glance
1. Manpower: Bolster workforce transformation, access skilled foreign labor, streamline onboarding processes, and foster leadership in local talent pools.
2. Land: Extend industrial lease tenures, increase productivity of industrial spaces, and offer infrastructure support for regional business expansion.
3. Regulations: Promote green transitions, optimize fire safety regulations, and improve regulatory processes for building projects.
Benefits to Singapore’s Business Landscape
The report emphasizes the need for sustained, collaborative efforts to make Singapore a leading global business hub amid economic challenges. “By addressing workforce development, land optimization, and regulatory efficiency, these recommendations aim to strengthen Singapore’s economy and attract global enterprises,” said Low Yen Ling and Mark Lee in their foreword.
The SBF and MTI will continue to engage with businesses to implement the AfA’s recommendations. “This report represents our commitment to developing actionable policies that uplift business competitiveness in Singapore,” said Deputy Prime Minister Gan Kim Yong. The task force encourages businesses to provide ongoing feedback to refine these policies, ensuring they meet the needs of Singapore’s evolving economic landscape.
For further engagement, businesses are invited to reach out via SBF’s feedback channel at policy@sbf.org.sg.
This report underscores Singapore’s proactive approach to policy evolution, aligning workforce, land, and regulatory support with enterprise growth and economic resilience. As global economic fragmentation intensifies, the AfA’s recommendations provide a roadmap for strengthening Singapore’s position as an agile and competitive business hub.
Source : Singapore Business Federation
