What kind of economy and business environment would you like to see emerging in Singapore over the next five years? How will it be different from what

Accept certain inalienable truths and one of them will be that Singapore will have its manufacturing base hollowed out. We can no longer produce cheap and will no longer be cheap. Our indigenous labor and land cost will rise. Our distinct comparative advantages in labor productivity is lowered and eroded by competition in the regions. We need a re-think to position ourselves as a center and hub of sorts and to integrate all the hinterlands’ competitive and comparatives advantages into our Singapore’s value chain to the world.

Going forward into the mid to long term future, Singapore’s tentacles must run deeply into the regional countries. They will be integral parts of Singapore hinterlands. The idea is much akin to the integrative action of nervous system where Singapore can add value in the coordination of research and development, providing arterial financial distributions and movement of capitals and funds and in the area of logistics. We may not be the manufacturing bases but Singapore can act to move human and financial capitals and use our transshipment advantages to provide gateway services.

One key way to build an inseparable alliance is to think of new ways to provide energy (refined or renewable energy) and water to many of our developing neighbors and how we can use technology and investments to boost our joint collaborations. All these will provide the links in a grand chain of mutual cooperation with our neighbors in Asia, which will promise to bolster Singapore’s significance in regional affairs.

If we do not re-frame our competitive advantages, at risk will be the sustainability of our economic model which is premised on strong manufacturing base with a strong financial infrastructure. We need more tentacles of progress.

Singapore will be a City of Dreams and a Future for all- galvanizing talents and businesses across Asia to Singapore. We’ll become a global schoolhouse drawing students of all Asian stripes to study and to work in Singapore. Some will be rooted here. Some will return but will establish their links from their home country to Singapore. As the City of the Future, Singapore will be the hub for sustainable solutions for tomorrow’s global opportunities in renewable energy, environmental protection, global schoolhouse, entertainment and healthcare. All these will be possible for so long as Singapore continues to have a visionary and stable government with a can-do spirit and taking every conceivable opportunity to take Singapore into the next lap and transformational change.