SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY, AT THE ECONOMIST SERVICE 10TH ANNIVERSARY DINNER AT FULLERTON HOTEL STRAITS BALLROOM ON FRIDAY, 15 JULY 2011, AT 7.20 PM

Distinguished guests

Ladies and gentlemen

CELEBRATING TEN YEARS OF SERVICE BY PUBLIC SECTOR ECONOMISTS

Good evening, I am happy to be here this evening to celebrate the achievements and contribution of the Economist Service on their 10th anniversary. I am glad to see former and present officers from the service come together to mark this milestone occasion and renew friendships.

The Economist Service or ES in short, was set up to deepen public sector capabilities in the economic analysis of public policies. In this past decade, the ES has been integral in sharpening the quality of our policy analysis and formulation. Their contributions have been significant to transform the economic and social landscapes of Singapore.

I HOW THE ES BEGAN

As in all anniversary celebrations, it is timely to reflect on our past and take stock of the achievements to pave the way for future growth. Looking back before the ES was formed, the Ministry of Trade and Industry (MTI) had already started to incorporate economic analysis in its policies. In particular, to provide firm macroeconomic foundations for Singapore, the Government developed competencies in macroeconomic analysis, such as monitoring macroeconomic developments and competitiveness, and forecasting economic growth.

However, the Government recognised that to maintain our competitiveness, we needed to build up microeconomic expertise as well. This would help to cultivate a conducive environment that supported enterprise development, innovation and wealth creation. There was thus a need to deepen and widen the scope of economic analysis for both micro and macroeconomic policies.

It was in this context that the idea of having a dedicated team of economic specialists within the public service was mooted. With the strong support of then DPM Lee Hsien Loong and then Minister for Trade and Industry, Mr George Yeo, the ES was set up in 2001 as a professional service for economists in the public sector, much like the Legal and Accountancy Services.

As a professional scheme, the ES provides economists with specialised career development and training opportunities that meet both organisational and individual needs. This fulfils two objectives. Firstly, it helps the public sector attract our share of the brightest economic brains in Singapore. Secondly, it also helps the public sector develop the capabilities needed for rigorous economic analysis across a broad spectrum of public policies.

II WHERE THE ES STANDS TODAY

Even though the ES comes under MTI, it serves the Whole of Government. Embracing this WOG approach is all the more important today when many policy issues go beyond the boundaries of individual ministries. Today, we have 50 officers in the ES. While most are in MTI, 18 of them are working in other key economic ministries and agencies such as the Ministry of Finance (MOF), Ministry of Manpower (MOM) and Ministry of National Development (MND).

Our ES officers do not conduct research and analysis for their own sake. Instead, they translate their findings into policy directions and recommendations to better serve the public. Over the years, the ES has influenced and shaped policies in diverse policy areas, from energy to healthcare. In a number of major economic decisions that Singapore has taken in recent years, the involvement of the ES has been critical.

One area is the introduction of major tourism projects. The past few years have seen the eyes of the world turn to Singapore in the month of September for the Formula One (F1) night races. Prior to the decision to introduce the F1 races in 2007, ES officers had to assess the potential economic benefits of hosting, and the intangible benefits from raising Singapore’s international profile. Without any historical data or precedents that could be analysed, ES officers had to study the experiences of other cities which hosted F1 races and develop estimates based on these experiences.

The ES has also played a critical role in advancing Singapore’s free trade agenda. Given our small domestic market, Singapore relies heavily on external demand for growth. To ensure that we are moving in the right direction, ES officers assess the impact of free trade agreements (FTAs), and seek to better understand how FTAs affect us over time. Their work has helped to guide Singapore’s trade policies and strategies, and advanced Singapore’s interests in the global trading environment.

The contribution of the ES is not limited to issues under the purview of MTI. The ES also contributes in policy areas that are more socio-economic in nature. One example is the review of the Workfare Income Supplement (WIS) scheme. Together with officers from the Ministry of Manpower, ES officers have conducted studies on the scheme, including an evaluation of how the WIS has affected employment. A significant finding is that the scheme has incentivised less-skilled, older Singaporeans to enter the workforce, thus validating the usefulness of the scheme.

More examples can be found in the 10th anniversary commemorative book that the ES is proud to launch today. Apart from recounting the achievements and contribution, this commemorative book also documents the history and milestones of the ES, and also profiles some of our ES officers and alumni to give insights into their work.

III WHERE THE ES IS MOVING TO

Moving forward, the policy space is becoming more complex as supply-side constraints in Singapore become more binding. Trade-offs thus become more stark. As we strive to achieve sustained and inclusive growth for Singaporeans in such an environment, it becomes even more important for all public policies to be reviewed and formulated critically and carefully to better serve the public. The ES will play a more important role in shaping public policies, in areas both within and beyond the purview of economic ministries and agencies.

The demand for robust economic analysis in the public sector is expected to increase. We have to meet this demand. MTI will therefore expand the size of the ES so that more officers can be deployed across the public sector, to not just economic ministries and agencies but also social ones.

To achieve this aim, we will continue to recruit fresh graduates and mid-career professionals to join ES. We will also encourage more in-service nominations of outstanding public sector officers who have a good track record in economic analysis to join the scheme.

IV ECONOMIST SERVICE SCHOLARSHIP

I now come to my next point about nurturing talents in the ES. Building up capabilities and developing expertise is an on-going process which requires a lot of time and effort. Therefore, we need to go beyond our reliance on recruitment from the open market to attract talents. What we need to do is to nurture and secure these talents early.

Hence, I am pleased to announce the introduction of the new Economist Service Scholarship that will be awarded and administered by MTI. This scholarship for undergraduate studies in economics will be open to students who are aspiring to study economics in the best universities from 2012 onwards.

Through this scholarship, we hope to attract talented students who are keen to read economics in university, and who are passionate about making a difference in society to join us as public sector economists. By identifying these students early, we will be able to develop their competencies, provide them with a wide variety of training and leadership programmes, and engage them on economic issues pertinent to Singapore while they are still in school. On their part, a deeper understanding of the work in the ES will enable students to better identify the skills they need to succeed in the ES, and to align their undergraduate studies accordingly.

The new Economist Service Scholarship complements our efforts to provide opportunities for in-service ES officers to continually sharpen their analytical and technical skills. These include scholarships for postgraduate studies, as well as opportunities to attend courses and workshops locally or abroad.

Through all these efforts, we hope to develop a talent pool within the ES and groom future leaders for the Service. Only by doing so can we continue to build up the quality and professionalism of the ES, and ensure that it will be able to provide rigorous economic analysis to shape public policies for Singapore’s long-term progress and development.

V CONCLUSION

In conclusion, I would like to commend the ES for their role in ensuring Singapore’s success. Tonight, I would like to thank all officers, including the alumni members for their hard work these past years. Congratulations to all of you for a job well done.

As we mark the 10th anniversary of the ES, I am confident the ES will continue to play an important role in charting Singapore’s economic development and progress for many more years to come.

I wish all of you enjoy a pleasant evening.