Good morning.

INTRODUCTION

1.         I am delighted to join you today for the launch of Amazon Prime Now, an ultra-fast service that delivers products to consumers within the same day of orders being placed.

A NEW PHASE OF DIGITAL TRANSFORMATION IS TAKING PLACE GLOBALLY, AND SINGAPORE IS WELL-POSITIONED TO CAPTURE THE OPPORTUNITIES

2.         A new phase of digital transformation is taking place globally.  Digital technologies are disrupting value chains across industries, as well as changing the way we live and work.

 3.         The digital economy also has the potential to bring about enormous opportunities.  This is especially so in Asia, with its emerging middle class and rapid urbanisation.  And, Singapore is well-positioned to capture these opportunities.  For instance, the World Economic Forum places Singapore among the top seven tech-ready economies globally[1], while the IMD World Competitiveness Centre ranks Singapore as the most digitally competitive country[2].

4.         The Committee on the Future Economy (CFE) has also identified the digital economy as one of the growth drivers for Singapore.  The CFE further outlined strategies to enable our industries, companies and people to adapt and seize opportunities from digital transformation.

SINGAPORE WILL CONTINUE TO CREATE AN ENVIRONMENT THAT ENABLES INNOVATION

5.         One of the strategies is to create an enabling environment for companies to innovate and thrive.  For example, the Monetary Authority of Singapore (MAS) has created a fintech regulatory sandbox, which will allow financial institutions and fintech companies to develop and experiment with innovative financial products and services.  Singapore will also be investing in digital infrastructure such as a national digital identification (ID) system[3] and 5th generation mobile network (5G).  The Singapore Exchange (SGX) and the Infocomm Media Development Authority (IMDA) will continue to help high growth companies, which have been accredited by IMDA, to leverage capital markets for expansion.

SINGAPORE WILL ALSO ACCELERATE THE ADOPTION OF DIGITAL TECHNOLOGIES ACROSS INDUSTRIES

6.         We will also accelerate the adoption of digital technologies across industries through our Industry Transformation Maps (ITMs).  Each ITM, developed and implemented in close partnership among government agencies, the industry, unions as well as trade associations and chambers (TACs), includes customised strategies to suit the needs of the relevant industry.  For instance, the Retail ITM supports our companies in their efforts to embark on e-commerce and omni-channel formats to increase their competitiveness.

7.         We will also partner leading companies like Amazon on their digital initiatives.  On this note, I am pleased to announce that Amazon is launching a new operating model with Amazon Prime Now in Singapore.  Through the use of new technologies such as artificial intelligence (AI), and innovative concepts such as random stow systems[4] and on-demand delivery scheduling, Amazon expects to achieve significant gains in labour productivity and infrastructure utilisation, as well as near real-time delivery of goods in cities.  Such an operating model will strengthen Amazon’s cost-competitiveness and agility, both in Asia and globally.

8.         Amazon can also serve as a valuable partner for our retailers, local brands and individual merchants.  By tapping on the Amazon Prime Now platform and its global fulfilment networks, they can access and serve global markets at scale and speed.  In addition, local brands like Tiger Balm and Mamypoko are working with Amazon to make their businesses e-commerce-ready, such as by improving their supply chain management and digital inventory.

SINGAPORE REMAINS COMMITTED TO PROVIDE TRAINING OPPORTUNTITIES AND CREATE GOOD JOBS FOR OUR PEOPLE 

9.         While the digital economy will be disruptive to existing business models, it will also give rise to new business models and job opportunities.  Hence, it is important that we continue to support training/retraining efforts that will enable Singaporeans to participate in and benefit from the digital economy.

10.        We will work closely with the industry to create good job opportunities for our people.  I am pleased to share that Amazon expects to create hundreds of jobs in Singapore over the next three years, across managerial, technical and operations roles.  Amazon has relocated two overseas Singaporeans – Mr. Aarif Nakhooda and Mr. Henry Low – who have experience in managing Amazon’s UK and US operations, to lead the new operating model for Prime Now in Singapore.  Amazon has also attracted people from different industries.  For instance, Mr. Kenneth Mak, previously from the oil and gas industry, has taken on a retail logistics role at Amazon and is working with inventory management technology.

11.       More broadly, through the TechSkills Accelerator (TeSA), we have equipped about 10,000 Singaporeans with skillsets such as data analytics, network engineering, immersive media and Internet of Things.  Mr. Jonathan Tan is one of the individuals who has benefitted from TeSA.  Jonathan graduated with a degree in Electrical and Electronic Engineering from Nanyang Technological University, and joined the sales operations of a firm that supports the chemical as well as oil and gas industries.  Driven by his interest in technology, Jonathan participated in one of the courses under TeSA’s Tech Immersion and Placement Programme (TIPP).  Through this programme, he was introduced to technology firm PALO IT and joined the company as a software engineer.

12.       I am glad to note that Amazon is committed to continue investing in talent development and providing training opportunities for our people to build up the requisite technical, entrepreneurial and creative skillsets.  These skillsets range from software engineering, digital marketing, data analytics and mining, to product management and partnerships development.

CONCLUSION

13.       In closing, I would like to emphasise that while technological change and business model innovation can disrupt the established norms of industry, it can also create new pathways and possibilities – for individuals and enterprises alike.  Our challenge is to be prepared to embrace that change, adapt to the new norms, and benefit from the new opportunities they present. 

14.       I would like to congratulate Amazon on the launch of its Prime Now service and new operating model in Singapore.  We look forward to deepening our partnership with Amazon, and enabling many more Singaporeans and our enterprises to seize the opportunities in the digital economy.  I wish the Amazon team every success.  Thank you.