Distinguished guests,
Ladies and Gentlemen
1. Good afternoon. I am pleased to join you this afternoon at the International Enterprise Singapore Joint Scholarship Ceremony 2013. Let me first congratulate all our scholarship recipients. This occasion marks the first and important step towards the realisation of your aspirations for an international career. We fully expect that all of you will play an integral role in driving Singapore’s economic future, whether it is at IE Singapore and the public service, or in the private sector at one of Singapore’s promising companies.
Globalisation Drives Singapore’s Economic Growth
2. Globalisation is a reality, and indeed a necessity, for Singapore. We have always had to look beyond our shores for growth opportunities and it is a key plank in our economic strategy.
3. Consequently, the value of Singapore’s trade is four times that of our Gross Domestic Product (GDP). Over the last three decades, we have also seen our stock of Direct Investments Abroad (DIA) grow significantly, reaching S$449 billion in 2011, or about 133 percent of our GDP. This far exceeds the world average of about 30 percent.
4. Beyond the numbers, our external economy is key to ensuring quality growth for our economy, and creating good jobs for Singaporeans. This external orientation also means that our companies have to maintain a keen competitive edge even as they seek out new business and markets. Our local companies are well-placed to be a powerful engine of this growth as they tap on opportunities in markets as diverse as Southeast Asia, China, the Middle East, Africa, Latin America and beyond. And the government will continue to support efforts to enhance the capacity of our companies to seize external opportunities.
Talent at the core of a globally-oriented economy
5. At the heart of this economic strategy are our people. Today, 45 per cent of staff employed by larger Singapore companies overseas are locals, i.e., Singaporeans or PRs. This percentage is significantly higher at 72 per cent among SMEs. In other words, a strong core of Singaporeans is needed to help drive our companies’ internationalisation plans. As companies make inroads into new territories, and their business needs become more sophisticated, developing a pipeline of local talent to take on regional responsibilities becomes critical.
6. At the same time, competition for talent in Singapore and the region is intensifying. A survey by PwC found that 55 per cent of business leaders in the Asia Pacific region anticipate an increase in company headcount over the next three years.[1] Consequently, many companies in the region are finding it increasingly difficult to attract suitable talent and undoubtedly Singaporeans will be in high demand.
7. In Singapore too, the growing competition for talent is an immediate challenge for our companies. According to an IE Singapore[2] survey, Singapore companies regard the availability of quality manpower as a key success factor for their overseas investments. However, it is also one of the biggest challenges they face when expanding overseas.
8. Hence, it is important that our people have a global orientation and not be averse to overseas assignments. We start from a relatively strong position with a younger generation of Singaporeans who are willing to go beyond their comfort zones. This willingness to be exposed to the global environment, and to take up jobs around the world, is vital to the success of our companies, and that of Singapore as an outward-oriented economy.
9. A separate study by IE Singapore found that two-thirds of our students today have had some form of overseas experience, be it through exchange programmes, study trips or internships. Also, nearly 90% of these students have expressed an interest in taking up an overseas posting, especially in the dynamic developing markets. This puts Singapore in good stead to develop a reservoir of talent to underpin our future growth.
Recognising the Talent Development Strategies of IE and the Companies
10. Today, two different scholarships will be awarded with the common objective of developing talent for internationalisation. They are the IE Singapore Scholarship and the inaugural Young Talent Programme Scholarship.
11. IE Singapore launched the Young Talent Programme scholarship to groom the next generation of country managers who can take on international portfolios. Under this programme, scholars will work with the participating companies to gain exposure to a wide range of business operations, and will be developed to potentially take on international roles. The eight companies who are participating in the programme span a wide range of industries, including lifestyle, engineering, logistics and real estate. I would like to commend these companies for their vision and strategic approach towards talent development. I hope that more companies will emulate their fine example by coming forward to be a part of this initiative.
12. The 12 undergraduates who are receiving the award were selected from over 100 applicants and after several rounds of interviews and assessments.
13. Ng Hai Ming is one example. Since his teenage years, Hai Ming has been involved in his family’s small-scale construction and property business. Through this experience, he was exposed to different aspects of the business, and has even participated in the direct negotiation of contracts at times. These skills will be invaluable when he starts to build his career with UES Holdings as part of the Programme.
14. I understand that the sponsoring companies have also been impressed by the quality of the applicants. This is a mutually beneficial programme – the scholars have the opportunity to work with and learn from progressive and externally oriented companies; the companies are able to take a long view in developing their talent base and nurturing their people for international assignments and challenges.
15. It is equally important that we build the capacity of the public sector to help drive Singapore’s external economy, and the IE Singapore scholarships, four of which are being awarded this year, are an important part of this effort. IE Singapore scholars will contribute to the realisation of IE’s mission to develop Singapore as an international trading hub and as a home base for Globally Competitive Companies (GCCs). These scholars, such as Crystal Ong, will be our first movers in emerging markets, and will help pave the way for Singapore companies to access them. They will gain valuable business insights and build strong connections with businesses. Crystal has always had an interest in international affairs, participating in international fora and competitions such as the International Public Policy Forum and the Global Round of the World Scholars’ Cup. She also led a team that mobilised over 1,000 student volunteers to raise funds as part of the Citi-YMCA Youth for Causes programme. It is this drive to engage the international community, and the ability to inspire others, that will contribute to IE Singapore’s mission to grow the external economy.
Developing Young Talent for Internationalisation
16. All our scholarship recipients have overcome challenges, big and small, to be here. Each of you has demonstrated the requisite traits, skills and competencies for success in a new phase of economic development and growth.
17. As you embark on the next phase of your education journey, I encourage you to challenge yourselves by immersing in new environments and acquiring global experiences. It is a time to discover more about yourselves and the diverse communities around you. It is also an opportunity to gain first hand work experience in cross-cultural contexts, to adapt to dynamic and fast-changing markets, and to develop the tenacity to stay strong in the face of adversity and strive for the long haul. These will serve you well in any future international career.
Once again, my congratulations to our scholarship recipients and your families, and our corporate partners in the Young Talent Programme. I wish you every success in your endeavours. Thank you.