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As a percentage of GDP, we spend
much more on development than the G-7 economies.
This reflects the emphasis we place on building
up a world-class infrastructure, focusing on areas
which bring high returns and lasting benefits.
We will invest in infrastructure to support economic
activities. We will develop a first-rate road
and rail network system to transport people and
goods efficiently and more industrial land will
be made available through reclamation. School
buildings and teaching systems will be constantly
upgraded to prepare our young to deal with future
challenges in the workplace and society. We will
continue to invest in affordable and good quality
public housing, and in modern drainage, sanitary
and waste handling systems to support healthy
living. Not least, we need to constantly upgrade
our defence and internal security infrastructure
so that our families and assets are well protected.
Over the last three years, that is, FY95-97, spending
on development has risen steadily from between
3-5 per cent of GDP prior to FY95 to 6.3 per cent
in FY97, and now, to 7.5 per cent in FY98. As
Singapore's economy graduates from the ranks of
developing country status to an advanced developing
economy, we will face new challenges and stronger
competition. We will need to quicken the pace
of economic infrastructural development and renewal,
and to accelerate the development and education
of our workforce. Notwithstanding the current
regional economic turmoil, we intend to implement
all the essential development programmes. We will
then emerge stronger and more robust once the
storm blows over in this part of the world.
Economic development programmes
under the Ministry of Trade & Industry are
expected to cost $2.8 billion and account for
the largest share of development expenditure.
Its share of GDP will rise from only 0.3 per cent
of GDP before FY95 to 1.8 per cent of GDP. The
thrust of development is in land reclamation on
Jurong Island to meet expansion needs of the petroleum,
petrochemical and chemical industry, an important
and growing arm of our manufacturing sector. More
than $1 billion is committed in FY98 for reclamation
of 1,800 hectares and a road link to Jurong Island.
In addition, another $420 million has been earmarked
for on-going reclamation and development at Tuas
View. Funds are also provided under the Economic
Development and Assistance Scheme, and the building
of a mega exhibition centre, acentrepiece of the
Tourism 21 plan.
Communications ranks second with
a development budget of $1.8 billion. This is
1.2 per cent of GDP, doubling from 0.66 per cent
of GDP in FY96, as we are committed to create
a world-class land transport system. A sum of
$1.2 billion is provided for the North East MRT
Line, Changi MRT Extension, Bukit Panjang LRT,
Sengkang LRT, a new MRT station at Singapore Polytechnic
and the construction of a building directly above
and integrated with the Dhoby Ghaut MRT station.
Also on the cards are several improvements to
our road network, such as the upgrading of expressways
and the building of new junction interchanges
and roads to ease congestion for faster movement
of people and goods.
As a result, spending on economic
and infrastructural development as a whole is
set to more than double from 1.3 per cent of GDP
in FY93 to 3.1 per cent of GDP in FY98. For the
second consecutive year, it has overtaken social
& community services as the top priority in
development spending.
But this has not been achieved
at the expense of reduced development spending
on social and community services. In fact, development
spending on social and community services has
also risen steadily and strongly over the past
five years, from 1.7 per cent of GDP in FY93 to
2.7 per cent of GDP in FY98. This is driven mainly
by increased spending on education projects, which
will almost double, from 0.7 per cent of GDP in
FY93 to 1.2 per cent of GDP in FY98. Spending
on drainage, sewerage and waste disposal facilities
under the Ministry of the Environment has also
gone up three-fold from 0.2 per cent of GDP in
FY93 to 0.6 per cent of GDP in FY98. On the slate
are a fourth incineration plant, a landfill at
Pulau Semakau, and the upgrading of various sewerage
works and facilities to expand processing capacity
to accommodate future demand |
