| Third, we need to diversify our
export markets. Singapore needs to develop strong trade
and business linkages to all parts of the global economy.
This will make our economy more resilient, and help
to offset cyclical slowdowns in any particular region
or industry.
The Trade Development Board (TDB) will
be adopting a three-pronged approach to ensure that
Singapore maintains its competitive edge in the global
trading arena. This will involve accessing emerging
markets, expanding demand into traditional markets such
as the US and EU, and consolidating resources in regional
markets.
To strengthen market access, TDB has
expanded the scope of its Trade Development Incentive
(TDI) to help companies promote trade and participate
in specialised programmes such as international franchising
and brand marketing. Since FY96, TDB has approved some
250 cases amounting to $11 million under the TDI. Government
has allocated an additional $20 million to TDI over
the next two years.
TDB will also be stepping up its market
development efforts to increase companies' awareness
of opportunities further afield. In 1998, around 800
companies participated in TDB's business missions and
international exhibitions. This year, TDB will be organising
some 100 trade missions and international fairs. About
30 such events will be targeted at the traditional growth
markets, such as the US and EU. Another 40 events will
be targeted at emerging markets in East Europe, South
Asia, Middle East, Latin America and Africa.
Our cost-cutting package has been well
received by both analysts and investors. A recent Merrill
Lynch report commented that as a result of the cost-cutting
measures, "unit labour costs should plunge back
to the 1992-93 level, substantially boosting the economy's
cost competitiveness". Another report by ABN-AMRO
noted that "Singapore is demonstrating that with
the package it can adjust its prices and costs quickly.
The package will help boost confidence in the economy".
Investors too have reacted positively. The substantial
cost savings, particularly from the CPF cut, will help
businesses ride out this difficult period. The package
has also helped the Economic Development Board (EDB)
convince investors that Singapore offers them an attractive
business proposition, even in the midst of the recession.
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