Singapore has experienced an enviable period of economic growth and prosperity. The island city-state tmaintains one of the highest standards of living in the world. The country does not take their good fortune for granted. Today, the Committee on Future Economy (CFE) published a report on how the country intends on maintaining its sustained economic growth.
Singapore’s last major “restructuring” occurred in 2010. This past month, the CFE convened after consulting more than 9,000 stakeholders to craft a plan. The government will provide an official response later this year.
The CFE noted that Singapore was in an “era of rapid technological change.”
“Innovation cycles have shortened. New technologies can supplant entire industries, displacing all their workers, even as they create new opportunities.”
Singapore has benefited greatly by the globalization push experienced in past decades. Therefore the country’s leadership is rightfully concerned with the rising anti-globalization trend percolating in Europe and the US. If trade is distrupted, Singapore could stand to suffer as two-thirds of their gross domestic product is via external demand.
The CFE has identified seven different strategies to accomplish their vision of sustainable growth and wealth creation. All seven may be viewed in the document embedded below.
Regarding alternative finance, the CFE says that the government must design a regulatory environment that supports innovation and risk taking. By leveraging Fintech sandboxes, Singapore will be able to test and prove new financial products and services.
The CFE states that Singapore should strive to become a global leader in fostering innovation and the pervasive use of Fintech. The proposed initiatives are to develop Singapore as a Smart Financial Center and to create opportunities for efficiency in electronic payments and to boost Singapore’s ability to finance SMEs and Asian startups.
To enhance the financing ecosystem for the next generation of innovative startups the “VC ecosystem should be further strengthened through a simpler regulatory framework for VC firms.”
Crowdfunding should be encouraged as a source of financing too. The CFE also wants to widen the network of angel investors in Singapore to provide startups with a more diverse support structure, and the possibility of syndicated deals. The document states:
“Electronic payments, crowdfunding platforms, and distributed ledgers will transform the financial services landscape, while the digitalisation of business processes and information will transform all industries.”
The concept of enabling an innovation nation by facilitating capital formation for early stage companies is nothing new. The encouraging aspect is the country’s leaders are putting it in a document which may become the guiding principle for many years to come.
The CFE explains;
“We want to be the pioneers of the next generation. Together, we will build a Singapore of global relevance; a Singapore that can ceaselessly reinvent herself and grasp new opportunities. We are prepared for tomorrow.”
Singapore’s Committee on Future Economy (CFE) has identified seven strategies for Singapore’s next stage of growth in its report.