SPEECH BY MR LEE YI SHYAN, MINISTER OF STATE FOR MINISTRY OF TRADE AND INDUSTRY & MINISTRY OF NATIONAL DEVELOPMENT, AT THE 54TH SESSION OF THE ASIAN PRODUCTIVITY ORGANIZATION GOVERNING BODY MEETING ON 17 APRIL 2012, 2:00 PM, AT SUNTEC SINGAPORE

Mr Somdy Inmyxai, Chair of Asian Productivity Organization Governing Body

Mr Ryuichiro Yamazaki, Secretary-General of the APO

APO Directors and Delegates

Distinguished Guests

Ladies and Gentlemen


Introduction

Good afternoon.

A very warm welcome to Singapore. Singapore last hosted the Governing Body Meeting 16 years ago, in 1996. It is our honour to host you once again.

Singapore and the APO

Singapore has long been associated with APO. In fact, we became a member of APO in 1969. In 1981, with the assistance of APO and the Japan Productivity Centre, Singapore developed its first ever national productivity campaign.

We are therefore grateful to APO and its members for their strong support over the years. APO’s programmes have helped us build capacities for productivity gain and sustainable growth.

Fast forward to 2012, 3 decades later, the need for productivity drive in Singapore remains as relevant as before, if not more.

Our first productivity drive

In 1981, when we started on our first ever productivity drive, Singapore’s GDP was $43.6 billion. Our workforce then was 1.2 million. As a developing economy, we felt the need to help workers acquire some basic but important mindsets about quality, zero defects, teamwork and continual improvement. Our need then was to grow out of labour intensive industries into higher value-added activities.

Three decades later, Singapore’s GDP has reached $300 billion, and our per capita GDP is at S$63,000 (or US$50,000) or more, and our workforce has grown to 3.2 million people. The need for further productivity gain has not reduced but grown even stronger. We are competing at a different level but the basic ingredient for competitiveness remains the same. We need productivity-driven growth.

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One of the most pronounced changes we have seen in the past 3 decades has been the way the world economy has become inter-connected. Goods are no longer manufactured in one country behind the high wall of tariffs.  Instead, supply chains are distributed across geographies, taking advantage of the competitive advantages of the various locations.

The huge supply of seemingly inexhaustible quality labour from India, China and other developing economies during this period has also redefined job worth and opportunities for the unskilled and low-skilled workers in developed economies like Singapore. There is now a great redistribution of economic roles amongst cities and countries as all compete in a “flat world”. The process of redistribution and specialisation is taking place swiftly, and is not without discomfort and pain as affected firms close and factories relocate.

Productivity for long-term growth

It is against this backdrop that Singapore is re-doubling our efforts to raise the productivity of our workforce. Going forward, Singapore will need to rely less on factor input such as labour supply, but more on productivity gain and innovation to drive growth, sustainable growth.

In fact, the Singapore Government in 2010 set a target of achieving productivity growth of 2 to 3 per cent per year over the next decade.

To achieve this productivity growth target, the Government set up the National Productivity & Continuing Education Council (NPCEC) to spearhead the national productivity drive. This National Council draws its members from the workers’ unions, employer sector and the public sector to focus on three priorities:

First, drive productivity initiatives holistically at the sectoral, enterprise and worker levels. Second, develop a comprehensive, first-class national Continuing Education and Training (CET) system. And third, promote and entrench a culture of productivity, innovation, continuous learning and upgrading amongst Singaporeans.

To date, the National Council has drawn up productivity roadmaps and action plans for 11 of the 16[1] priority sectors. It has set aside a S$2 billion-National Productivity Fund to help industries with many customised capacity building programmes.

Singapore’s contributions to APO

Having been a beneficiary of APO’s work, Singapore stands ready to make contributions back to APO to benefit other members. For instance, in 2009, SPRING Singapore was appointed by APO as the first Centre of Excellence (COE) for Business Excellence. In this capacity, SPRING will endeavour to share best practices on management systems and business processes with participating APO members.

SPRING is also organising this year’s Business Excellence-Sharing Conference over the next two days in conjunction with this meeting. I hope many will benefit from the exchange of best practices in furthering their work in business excellence.

Conclusion

For the last 50 years, APO has played an important role in helping its members in their national productivity efforts. Going forward, we have no doubt that APO will continue to catalyse productivity development amongst its member economies.

Given the diverse nature of the economies amongst APO members, a one-size-fits-all approach will not be sufficient. I am glad that APO has introduced customised programmes to meet the needs of its individual members.

Ladies and gentlemen, the APO Governing Body Meeting brings together APO leaders and members and their wealth of experience and knowledge in the areas of productivity, economic development, and policy-making.  It is our chance to map out an exciting future together. Let me wish you many productive and fruitful discussions ahead.

Thank you.