All jobs at risk amid stiff global competition: Shanmugam

By Karl Lim, Lim Ching Ying

Minister for Home Affairs and Law K Shanmugam urged students not to be complacent about Singapore’s success. PHOTO: JAMES NG

Local jobs for the younger generation are in danger of migrating overseas due to an increasingly competitive global landscape, said Minister for Home Affairs and Law K Shanmugam at this year’s Ministerial Forum on 28 Mar.

Speaking on the theme “Progressing Towards SG100,” Mr Shanmugam warned citizens not to rest on their laurels as regional and international competitors are gaining parity with Singapore.

“(People may) think that the current situation is pre-ordained and very settled,” he told the 430-strong crowd of students, faculty and members of the public at the School of Art, Design and Media auditorium.

“But in reality, our situation is like a spinning top spinning on a very narrow base and dependent on the region.

“Don’t take your position in the world for granted.”

Mr Shanmugam highlighted four industries here that are at risk from fierce regional competition.

Providing roughly 306,000 jobs combined, they are: finance, aviation, maritime and chemical.

The finance industry, which accounts for 12.6 per cent of Singapore’s gross domestic product, faces threats from Hong Kong and neighbouring city Kuala Lumpur, and with Malaysia ramping up work on its financial centre, competition will become inevitable, Mr Shanmugam said.

He added that other regional economic players could easily catch up and overtake Singapore even in industries where the country has historically excelled in.

Although Singapore remains the regional leader in aviation, Bangkok is well-poised to overtake us given its cheaper land and better flight links, he said.

The minister also cited how a number of airlines shifted their operations to Thailand when Bangkok’s Suvarnabhumi Airport opened in 2006.

Globally, the nation is just as vulnerable as technological advances aid the outsourcing of local jobs to countries such as China and India, where labour is cheaper.

“The competition doesn’t even need to come into Singapore to compete with us. They can compete with us wherever they are,” said Mr Shanmugam.

“So ask yourself: ‘Which of your jobs are not at risk?’ That’s the nature of competition today.”

In the following dialogue session that lasted for over an hour, students raised issues ranging from the death penalty to integrating transient workers into society to policy-making dilemmas.

They also asked the minister how the country’s century milestone could be achieved.

“Will we reach SG100? It depends on you,” he replied.

“I’ve a lot of faith in our young people. I believe our young people know what it is that makes Singapore successful.”

A version of this article appeared in the print edition of The Nanyang Chronicle on April 4, 2016, with the headline ‘All jobs at risk amid stiff global competition: Shanmugam’. Print Edition