Here’s how Singapore can stay competitive in an uncertain world

Singapore has a deep talent pool and consistent policies that promote trade and business.

Four top executives of global companies give their take on how Singapore can position itself as an attractive destination for leading international businesses and talent despite volatile economic conditions and signs of a global slowdown in demand. They were recently in Singapore to attend the Economic Development Board’s annual International Advisory Council meeting, to discuss the country’s strategies for achieving sustainable growth, driving job creation and strengthening its influence in the global economy.

Supporting the global sustainable energy transition

Singapore has played a crucial role for Shell in the Asia-Pacific region, ever since our company started operations here in 1891. Shell remains one of Singapore’s largest foreign investors today, employing around 3,000 people, supplying a broad range of energy products and serving customers across the region.

The energy transition is an opportunity for Singapore to contribute to the world’s progress towards a low-carbon economy. The economy of the future relies on the energy system of the future, including infrastructure for solar and wind power, biofuels, hydrogen and carbon capture and storage. It also requires governmental regulations and policies to ensure consumers and companies adopt low-carbon technologies and fuels.

By collaborating even more closely and effectively, the Government and industry can thrive through the energy transition together.

One example is right here in Singapore, Shell’s only energy and chemicals park in Asia, located on Pulau Bukom. Shell built Singapore’s first oil storage installation and later the country’s first refinery in 1961 on Bukom. Today, Bukom is undergoing a transformation into an energy and chemicals park that will focus on producing low-carbon energy products like biofuels; incorporate circularity, such as waste plastics for feedstock; as well as provide renewable energy.

Ben van Beurden, CEO, Shell, one of the world’s largest energy companies. It has been in Singapore since 1891. Shell employs around 3,000 people in the Republic and supplies a broad range of energy products to customers across the region.

A regional decarbonisation ‘coordinator’

In the current macroeconomic and geopolitical context, supply chain drivers are evolving rapidly to include sustainability and resilience. This gives Singapore an opportunity to deepen its role in centralising the coordination and decarbonisation of Southeast Asia.

For instance, we see an important role for Singapore in supporting the training of both young and experienced engineers in low-carbon solutions such as district cooling or rooftop and floating solar installations. These skills are highly exportable and will support the region in successfully meeting its decarbonisation targets while mitigating energy supply and sovereignty risks.

Singapore can also help local businesses understand regional specificities such as local content requirements and investment restrictions. It can mitigate these complexities by helping shape the development of a cohesive regulatory framework at the regional level to support decarbonisation; this can be done through fiscal levers (carbon tax, cross-border carbon trading and accounting) and through the facilitation of low-carbon private sector investments.

Singapore is a fantastic location for new businesses and the scaling up of innovation. Engie has enjoyed easy access to an excellent workforce, provided by a good mix of both local and overseas talent (under the applicable immigration schemes). It has also benefited from a robust and clear system for business protection assurance, ease of international expansion, and good market testing opportunities.

These factors have facilitated our efforts to future-proof our business – by investing in innovation with Engie Lab, incubating new ventures through Engie Factory and partnering with local universities to develop a talent pipeline.  Engie Lab and Engie Factory are helping us ramp up our capabilities and fast-test innovation (we operate a pilot site at scale on Semakau island, for example); together they help to make Southeast Asia’s energy transition affordable and available, through cooling and renewable energy solutions, including green hydrogen.

Catherine MacGregor, CEO, Engie. French utility company Engie is one of the key players in the electricity, natural gas and energy services sectors. It first established its presence in Singapore two decades ago, which is home to its regional headquarters.

A hub for innovation and talent

On the global stage, Singapore is already at the forefront of attracting, developing, supporting and retaining strong talent. In the Insead and Portulans Institute 2022 Global Talent Competitiveness Index Report, it came in second place for its best-in-class talent management – the only country in the Asia-Pacific to be in the top 10.

Nevertheless, to remain competitive globally, it will continue to be important to consider how to upskill its people to meet the demands of international business.

To meet the challenges of a changing world, it is imperative that companies focus on long-term strategies to ensure they are attracting and retaining talent by looking at career advancement opportunities, flexible work settings and creating a culture of lifelong learning so that people can reach their highest potential.

As one of the most research and development (R&D) intensive industries in the world, the biopharmaceutical industry has invested nearly US$1.7 trillion (S$2.3 trillion) worldwide in R&D over the past decade. Another US$1.2 trillion in investment worldwide is expected in the next five years. The industry promotes economic growth through high-wage, R&D and manufacturing jobs. Innovative medicines can also help sustain productive workforces and address some of the challenges of a super-ageing society.

Continued advances in science will be critical in ultimately bringing innovative treatments to patients and solving future healthcare challenges. This begins with strengthening the biopharmaceutical innovation ecosystem by ensuring that innovation is stimulated and rewarded, and incentives are aligned with the pace of scientific discovery.

Christophe Weber, CEO, Takeda. Takeda is a global biopharmaceutical company with over 240 years of history. It first established its Asia-Pacific regional operations and clinical development hub in Singapore in 2008.

The digital capital of Southeast Asia

Businesses across the world are facing a more challenging economic climate. But in the longer term, there are plenty of reasons for optimism, particularly for businesses operating in this region. The Asian Development Bank updated its gross domestic product growth forecast for Southeast Asia to 5 per cent for 2023, an indicator that the region can withstand the worst of the downturn.

Slowdowns are a natural part of the economic cycle – they can be painful, but they also serve as a moment to reset. Ambitious businesses recognise that the downturn creates opportunities. Singapore’s forward-looking business environment provides the perfect conditions for this kind of thinking. It is likely that the leading global tech businesses of 2030 will be created in 2022 and 2023.

Singapore remains an important regional hub for Stripe and our users in Asia. We believe in building for the long term, ensuring the financial infrastructure is in place that will help the next Grab or Carousell to launch and scale globally. Singapore provides the perfect base for this because the nation takes a patient, multi-decade view. It has long understood the importance of global integration, technological advancement and thoughtful progress as key ingredients for success.

Given Singapore’s talent base, global mindset and capability for innovation, I am optimistic many of them will be built in Singapore and the wider Southeast Asia region.

John Collison, President and Co-Founder, Stripe. Stripe is a global financial infrastructure platform for businesses to accept payments, grow their revenue, and accelerate new business opportunities.