SINGAPORE: Singapore Prime Minister Lawrence Wong pledged more support for workers and households, and said the government would step up efforts to secure energy supplies and attract investment as the city-state confronts growing global uncertainty.
Wong said at the ruling People’s Action Party convention on Sunday (Oct 25) that major semiconductor companies were keen to expand in Singapore and artificial intelligence firms were establishing a presence. He acknowledged that the benefits of economic growth remained uneven, as some workers struggle to keep pace with rising costs and others worry about job security.
"Our task is not just to keep the economy growing,” Wong said. "It is to make sure that growth translates into better lives for all Singaporeans.”
Singapore faces increased threats of energy supply disruptions, adding to concerns about its dependence on overseas resources. The risks to the country’s economy were underscored by Indonesia’s decision to trim gas exports on Saturday.
Wong said Singapore expected its gas supply contracts to be honoured after Indonesia announced cuts to exports on Saturday. Indonesia said it was cutting pipeline gas exports to Singapore by about 31 million standard cubic feet a day to meet domestic power demand.
"We expect all parties to honour their commitments and Singapore’s gas importer will take the necessary steps to protect its rights and interests under these contracts,” he said.
Singapore has invested in liquefied natural gas import facilities to diversify supplies and is also seriously considering nuclear energy as a longer-term alternative, Wong said. While safety concerns in the densely populated city-state must be addressed, he cautioned against dismissing the technology outright.
"Safety must come first, but we should not rule out an option simply because it is difficult or controversial,” he said.
The boom in AI and semiconductor investments offers opportunities for the trade-reliant nation to attract capital and create higher-paying jobs, and Wong said he had met executives of major tech companies over the past month who were eager to expand their Singapore operations.
Startups increasingly view the country as a base for growth, while AI companies including OpenAI and Anthropic have established offices.
Singapore is stepping up its international engagement to sustain that momentum, Wong said, pointing to his recent visits to Qatar and the United Arab Emirates. The country’s reputation as a reliable partner was becoming increasingly important in attracting investments and creating jobs, he added.
Singapore’s economy expanded 5.4 per cent in the third quarter, slowing from 6.2 per cent growth in the second, according to initial official data earlier this month.
Still, Wong acknowledged that strong headline economic numbers masked pressures facing parts of the population. Lower-wage workers were concerned about living costs, while those in their 40s and 50s feared difficulties finding employment after losing their jobs.
He promised further measures to ease household expenses and strengthen support from education through retirement, building on initiatives for families with children announced at this year’s National Day Rally.
"There is much more to come, and we have a full agenda in this term of the government,” Wong said. - Bloomberg
