Govt to set aside S$2.4b over next four years to kickstart CFE schemes

SINGAPORE — To implement the strategies of the Committee on the Future Economy (CFE), the Government will set aside S$2.4 billion over the next four years as part of the Budget, said Finance Minister Mr Heng Swee Keat yesterday. This is in addition to the S$4.5 billion set aside for the Industry Transformation Programme launched during last year’s Budget, which aimed to support industries and drive innovation.

Government agencies will also do their part to create space for innovation, such as by making regulations more flexible. The CFE published its report earlier this month after a year’s work, outlining seven strategies to grow Singapore’s economy for the next decade.

Among the strategies that were recommended include the new Global Innovation Alliance (GIA), which will have three programmes.

One programme is the Innovators Academy to help tertiary students build connections overseas, by expanding the existing National University of Singapore Overseas College Programme, which arranges for students to work at start-ups overseas. Students from other universities will be able to take part in the programme, and the academy aims to increase the annual intake from 300 to 500, over the next five years, said Mr Heng, who shared details of the GIA in his Budget speech.

Also part of the GIA are Innovation Launchpads, which will be established in selected overseas markets to create opportunities for businesses to connect with investors, service providers and mentors.

And Welcome Centres will be set up to help Singapore and foreign companies work together to co-innovate, test new products in Singapore, and expand in the region.

For a start, the GIA will be launched in Beijing, San Francisco and various Asean (Association of South-east Asian Nations) cities.

Meanwhile, the SkillsFuture Leadership Development Initiative will expand leadership development programmes, such as by sending leaders for specialised courses and on overseas postings. This initiative will aim to develop 800 potential leaders over the next three years, he said. A total of S$100 million will be set aside for this initiative and the GIA programmes.

More money will also be pumped into the National Research Fund, with S$500 million to support innovation efforts, and S$1 billion towards the National Productivity Fund.

Mr Heng also stressed that the Government must play “enabling roles” to help realise new ideas and innovation, and balance between managing risk and creating the space to test innovation. To do that, regulatory sandboxes — where rules are suspended within certain boundaries — can allow for greater experimentation. For instance, self-driving vehicles are now being tested out on the streets within specific zones.

Regulatory agencies have to further explore how to facilitate innovation, said Mr Heng, noting that one way to do it is to make risk assessments for new products and services faster and more effective.

Mr Heng also gave an update for the Industry Transformation Maps (ITMs) announced in the last Budget to transform each of the 23 sectors. Six of the maps have been launched, and the remaining 17 will be launched within the 2017 financial year, he said, adding that the ITMs are “live plans” that will be adjusted along the way.

The S$2.4 billion set aside over the next four years to implement the CFE strategies includes:

• Up to S$600 million for International Partnership Fund

• Over S$100 million for the Global Innovation Alliance and Leadership Development Initiative

• About S$150 million for the Public Sector Construction Productivity Fund

• S$500 million top-up to National Research Fund

• S$1 billion top-up to National Productivity Fund