Local, global firms both needed for Singapore’s economic success, ministers say
They stress MNCs’ vital role alongside continued support for small businesses and local workers
Transport Minister Jeffrey Siow stressed during a Parliament debate on Aug 5 that both multinational corporations and local businesses are essential for Singapore's economic success. Siow, who is also the second minister for finance, noted that MNCs can introduce resources and capabilities that might not be available domestically.
He added that many local companies thrive due to their relationships with MNCs. The People's Action Party (PAP) economic strategy centers on Singaporeans and supports SMEs while attracting MNCs, which has benefited generations of Singaporeans. Siow emphasized that while the PAP will continue to support local businesses, it does not discount the importance of MNCs to the economy.
The debate arose from a motion tabled by Workers' Party (WP) MPs Kenneth Tiong and Jamus Lim, which called for a more inclusive economy. WP MP Jamus Lim advocated for shifting the model away from large foreign MNCs and towards SMEs as the home-grown economic engine. Siow countered that the WP's stance assumes domestic demand would be insufficient if global markets become uncertain, a view he deemed unrealistic given the size of the local market.
Despite the differing perspectives, ministers expressed their commitment to helping businesses expand beyond the domestic market and addressing concerns about job prospects for fresh graduates, particularly in the face of potential offshoring and AI adoption.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
