Do more to address weak innovation, productivity

I refer to the commentary “Why S’pore should not sell off its iconic firms” (Nov 26). Iconic or not, sentimentality is not reason enough to hold on to unprofitable, low-growth or sunset enterprises, especially those highly dependent on global markets.

NOL, even with Temasek Holdings’ deep pockets, has been for years the subject of management changes because of poor financial performance in the global market.

The more pertinent question to address is why Singapore, despite its prosperity, lacks significant and sustainable global companies and brands, unlike other economies in the region, such as South Korea and Taiwan, and unlike the Apples of this world.

Singapore’s bright economic outcome is not guaranteed to be replicated in future. In fact, signals in recent years indicate otherwise, and the future of SG100 is indeterminate.

It is time to move off the distractions of the year-long SG50 celebration and get both our new generation of ministers and our people up to speed to meet the challenges.

Our national commerce has not flattered and this is reflected in the stock market. The cost of doing business has risen faster than revenue.

The Government’s plan to rely on innovation and productivity as future growth pillars, just to achieve 2 to 4 per cent in yearly economic growth, is troubling because we have underperformed in these two areas almost since independence.

It takes more than the use of buzz phrases such as SkillsFuture to make things happen sustainably. Productivity with limited labour, land resources and market scale will continue to be a hurdle, while productivity without profitability is untenable.

Innovation depends on formal training. More critically, it relies on generational changes of the mind and mindset, the environment and public governance, which are achievable only in the long haul.

Market scale and product relevance to overseas consumers are also critical in providing the impetus and financial support to make it happen.

I hope the Government will have substantive action plans, with timelines and targets, for these two growth initiatives by the next Budget.