Singapore strengthens social equity and global ties amid economic shifts

[SINGAPORE] Singapore remains steadfast in its mission to create a “society of opportunities” where citizens can achieve their ambitions, even as the world grapples with sweeping economic and geopolitical changes, Deputy Prime Minister Heng Swee Keat said on April 29. Speaking at the 2025 International Conference on Societies of Opportunities, Mr Heng reaffirmed Singapore’s commitment to investing in critical areas such as housing, education and healthcare. He highlighted that for every dollar of GST paid by lower-income Singaporeans, the Government returns four dollars in support.

He stressed that Singapore’s efforts to forge a fair and just society go beyond financial redistribution, focusing also on enabling upward mobility. The expansion of the ComLink+ programme, which offers personalised support for low-income families—including mentorship and job matching—was cited as a key example. “We are not just giving fish; we are teaching how to fish—and ensuring the pond is full,” he said.

The conference, jointly organised by the Ministry of Social and Family Development and the Institute of Policy Studies, brings together stakeholders from the social service, academic and public sectors to explore strategies for inclusive growth. Nearly 700 participants attended the opening day at the Sands Expo & Convention Centre.

Mr Heng outlined Singapore’s approach to navigating global uncertainties, such as trade tensions, rapid technological advances, and shifting demographics. These challenges, he noted, are already impacting the local workforce, particularly in roles vulnerable to automation like manufacturing and administrative support.

In response, initiatives such as the “Adapt and Grow” programme under SkillsFuture have helped over 120,000 workers transition into new roles since 2020. “We are taking proactive steps to ensure Singaporeans can remain resilient and relevant,” he said.

Amid a retreat from globalisation by major economies, Singapore is doubling down on its strategy of deepening international partnerships. With trade valued at three times its GDP, Mr Heng said such collaborations are vital for the nation’s prosperity. Singapore’s network of 27 active Free Trade Agreements—spanning ASEAN, China, the EU, the US and others—underscores this commitment.

He also announced that Singapore’s 28th FTA, with the Pacific Alliance comprising Chile, Colombia, Mexico and Peru, will come into effect this weekend. To capitalise on the digital economy, Singapore has forged bilateral economic agreements with Australia, South Korea and the UK. The country is positioning itself as a global-Asia hub for science, technology and innovation, backed by a $28 billion investment in research and enterprise between 2021 and 2025.

Singapore’s rise to third place in the 2024 Global Innovation Index and the recent launch of the Advanced Manufacturing Training Academy were cited as indicators of progress. “Our investments are paying off, but the race is never over,” Mr Heng said.

Emphasising lifelong learning, he pointed to enhanced SkillsFuture initiatives, including the Level-Up Programme, which provides Singaporeans aged 40 and above with an additional $4,000 in training credits.

Turning to social equity, Mr Heng lauded the Progressive Wage Model, introduced in partnership with NTUC, which has raised wages and skills for lower-income workers across nine sectors. From 2019 to 2024, real wages for the 20th percentile of workers grew by 5.8 per cent, outpacing the median wage increase of 3.5 per cent.

“This means that despite rising costs, lower-wage workers are seeing real improvements,” he noted, while acknowledging the need to support vulnerable groups who may be left behind.

In a broader reflection on global trends, Mr Heng said the uneven distribution of globalisation’s gains has prompted countries like the United States to revive domestic manufacturing, contributing to trade tensions and uncertainty. The IMF has revised its global growth forecasts downward, projecting 2.8 per cent in 2025 and 3 per cent in 2026.

He warned that digital disruption could further exacerbate inequality, creating “winner-takes-all” economies dominated by scale-driven market leaders. Developing countries, he added, will need new growth strategies as cheap labour becomes a less decisive advantage.

According to the World Economic Forum, 40 per cent of existing workforce skills could be transformed or obsolete by 2030—a shift that demands urgent adaptation. Singapore is already facing demographic pressures, with one in four citizens expected to be 65 or older by 2030.

“The 3Ds—deglobalisation, digital disruption, and demographics—will reshape our world,” Mr Heng said. “There will be winners and losers. But just as the 20th century saw humanity rise to historic challenges, so too can we find new ways forward.”

In a lighter moment, Mr Heng shared that he stepped in to deliver the keynote address at the request of DPM Gan Kim Yong, who was attending to grassroots duties in the new Punggol GRC, where the PAP is facing a challenge from the Workers’ Party in the upcoming May 3 General Election.