24.

Economic & Infrastructural Development forms the third largest sector, taking up $5.9 billion or 20 per cent of total Government expenditure. Within the sector, MCIT has the largest share of $2.2 billion, followed by MTI with $1.9 billion. MND is allocated $584 million, but this excludes Public Housing which is funded separately. MOM will receive $171 million. The remaining $978 million allocated to this sector is used to fund all the R&D programmes undertaken by ministries.

25.

Economic development will continue to take a three-prong approach: investment in infrastructure, creation of new economic activities to achieve sustainable growth and comprehensive development of our workforce to meet the challenges of economic restructuring. Infrastructure investment is achieved mainly through projects undertaken by MCIT, MTI and MND. MCIT will spend $1.2 billion to make rail-based improvements to the land transportation system and a further $260 million to make road-based improvements. MTI will spend $780 million to develop projects on Jurong Island and a further $380 million for reclamation at Changi East, Sentosa Cove, Southern Islands and infrastructure works at Kaki Bukit and Tuas View.

26.

EDB and TDB together will undertake the task of creating new economic activities. EDB is allocated $309 million for this purpose while TDB will receive $38 million. MOM will be responsible for the development of our workforce and is allocated a sum of $171 million. This represents a 68 per cent increase from the FY99 allocation.

27.

The General Services sector, comprising MFA, organs of state, and the central ministries, continues to take up the smallest share of the total Government expenditure at 7 per cent. Our intention is to keep central administration lean, and let the operational ministries have the bulk of the resources.