Both MNCs, SMEs needed for Singapore’s economy to thrive: Jeffrey Siow

Transport Minister Jeffrey Siow emphasized that both multinational corporations (MNCs) and small and medium enterprises (SMEs) are vital for Singapore's economy to thrive. Amid a challenging global environment, Singapore must compete harder for foreign investments and support local companies. Siow highlighted that MNCs and SMEs mutually reinforce each other's growth.

The debate on a motion moved by WP MPs suggested that Singapore should focus on a dynamic local economy, healthy domestic demand, and Singaporeans and Singaporean capital venturing abroad. Siow pointed out a significant difference in how the PAP and WP perceive Singapore's economic model. The WP believes the model is imbalanced, prioritizing MNCs and holding down SMEs, with citizens benefiting through redistribution.

In contrast, the Government's strategy is built around Singaporeans, aiming to create better jobs, higher incomes, and improved lives for citizens. Siow noted that SMEs are critical to the economy, employing the majority of the workforce, with nearly $2 billion in direct grants set aside annually for SMEs. Despite some schemes not being fully utilized, the Government will help more companies tap into these resources.

Siow acknowledged the difficulty SMEs face in venturing overseas, given Singapore's small domestic market. Therefore, strengthening companies to compete effectively in overseas markets is crucial, leading to the establishment of the Singapore Economic Resilience Taskforce. MNCs remain essential to Singapore's economy as they bring resources, capabilities, and technology, including artificial intelligence, which would take local companies years to develop.

Siow emphasized that Singapore should be clear about necessary changes while preserving what works well, such as the coexistence of SMEs and MNCs, domestic demand, and external markets.