SPEECH BY MR S ISWARAN, SENIOR MINISTER OF STATE FOR TRADE AND INDUSTRY, AT THE ST ELECTRONICS NATIONAL DAY OBSERVANCE CEREMONY ON 5 AUGUST 2008
Mr Seah Moon Ming, President, ST
Electronics,
Distinguished
guests,
Ladies and
gentlemen,
I am happy to join you today at ST
Electronics’ National Day Observance Ceremony, to celebrate our
nation’s 43 years of
Independence.
The evolution of ST Electronics is in
many ways a typical Singapore story.From your humble beginnings in
1969 as an electronics maintenance company, ST Electronics has
developed into a top tier international Information Communication
Technology (ICT) company with high end technical capabilities and
solutions catering to your clients’ sophisticated needs.Today you
have a global footprint with offices in more than 18 countries
(including Australia, Botswana, China, Hong Kong, India,
Kazakhstan, Malaysia, Mexico, Taiwan and the US) and your customers
come from over 70
countries.
I am delighted to note that
ST Electronics was the first ICT company in Singapore to achieve a
turnover of $1 bil in 2007.It is a milestone accomplishment in a
highly competitive industry, and a tribute to the management and
staff of ST Electronics.
Economic Outlook for
Singapore
This year, we celebrate National Day against the
backdrop of an uncertain global economic outlook.Singapore’s
economy grew by 4.3% in the first half of this year.This is within
our medium term potential rate of growth of 4-6% based on the
latest GDP advance estimates. Our job market remains healthy with
more than 70,000 jobs[1] created in the
second quarter of the year.The unemployment rate also remains
low.
The information and communication
services industry grew by 6.7% in the first quarter of the
year.Theinfocom sector is a key contributor to our economy which
has greatly enhanced our competiveness by raising productivity and
transforming business processes.
Challenges
Ahead
The momentum of economic growth has recently
slowed and the global economy is expected to remain soft in the
second half of 2008. In the US, there are significant
vulnerabilities in the financial sector.And, the other major
developed economies like Japan and Germany also expect to see
further softening, as they are confronted with the challenges of
high oil prices and weak consumer
confidence.
In Asia, on the other hand, economic growth has
been fairly robust. China’s GDP grew by 10.6% in the first quarter
of this year, while India’s GDP grew by 8.8%. But both China and
India are facing record levels of high inflation and have started
to take steps to contain inflationary pressures.These in turn could
dampen growth.
The global marketplace is becoming more
challenging with shorter product life cycles and eroding margins.To
meet these challenges, ST Electronics will have to continue
expanding your competencies and capabilities by investing in
research and development and developing new products and
solutions.In an increasingly competitive environment, it is
important to carve out niche markets for yourself in order to stay
ahead.
The people behind ST Electronics will
also need to continually build on your capabilities to meet the new
challenges and stay relevant to your customers changing
needs.I understand
that ST Electronics has training programmes for its engineers to
excel in core skills such as master planning, system architecture
and project management.I urge you all to seize these
opportunities in order to upgrade your skills and add value to
yourselves and your organisation.
The Tripartite Partnership in Labour
Management
I am heartened to note that ST
Electronics regards its people as the organisation’s most important
asset.Indeed, this is not just a slogan but a fundamental mindset
which every company should embrace.In that regard. besides
opportunities for training and skills upgrading, good labour
management relations are key. In
Singapore, we have enjoyed harmonious industrial relations over the
past three decades. The foundation of this success is a strong
tripartite partnership between the government, unions and the
employers. This strong nexus between the three partners is based on
trust, mutual respect and open communications. Our unique model of
tripartitism is one of the critical contributory factors in our
economic development. This strategic
partnership must continue to be nurtured and should not be taken
for
granted.
A good example of tripartitism at work is the introduction
of the inclusive Workfare programmes by the government, to
supplement the wages and savings of older low-wage workers.It is
based on the principle that the best way to help people is to help
them find work and stay employed.Workfare
provides more incentives for individuals to work, and for employers
to hire them.With Workfare, the Government is stepping in to share
the burden of social support with the individual and his
employer.We need more of such creative tripartite efforts – with
labour unions, employers and government working together - to
sustain the employability of Singaporeans and to enhance the
competitiveness of our companies in a complex
environment.
Conclusion
Let me conclude by commending ST
Electronics on your sterling achievements.The company has done particularly well over the past
year, with the various business groups securing a number of major
contracts.I have every confidence that you will scale even greater
heights with the collective effort of the management and staff of
ST Electronics.On that note, I would like to wish one and
all good health, success and many more good years
ahead.
Happy National Day.