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Singapore's Deputy Prime Minister outlined the need for countries to address de-globalisation, digital disruption, and demographic shifts, working together to foster opportunity, focusing on partnerships, human potential, and fair societies.
In a world grappling with three major challenges — deglobalisation, digital disruption, and demographic shifts (3Ds), Singapore's Deputy Prime Minister Heng Swee Keat has reaffirmed that opportunity must be actively cultivated.
Speaking at the International Conference on Societies of Opportunity (ICSO), he reflected on the transformative progress of the 20th century, where global cooperation and institutions such as the International Monetary Fund (IMF) and World Trade Organisation (WTO) facilitated unprecedented economic growth and lifted billions out of absolute poverty.
However, he cautioned that the 3Ds above threaten to reverse these gains.​
He elaborated on the 3Ds:
- De-globalisation: The decline from globalisation, particularly by major economies, is creating trade uncertainties. He also pointed out the recent downgrade by the IMF of its global growth forecasts for 2025 and 2026 to 2.8% and 3% respectively, highlighting the significant economic impact of the current global shifts.
- Digital disruption: Rapid technological advancements, especially AI, are reshaping industries. The World Economic Forum (WEF) predicts nearly 40% of existing skillsets will be obsolete by 2030. He stated that advancements in AI and information processing technology were projected to generate 11mn jobs between 2025 and 2030, while at the same time leading to the displacement of 9mn jobs.
- Demographics: Ageing populations and shrinking workforces present new challenges. He also noted the demographic shift in Singapore, stating that by 2030, one in four Singaporeans would be 65 years of age or older, a trend that emphasised the importance of workforce augmentation and reskilling initiatives.
In response, Singapore is focusing on three key strategies:
1. Economic partnerships: Building robust trade agreements to counter deglobalisation. Singapore's 27 free trade agreements, including its involvement in Regional Comprehensive Economic Partnership (RCEP) and the Pacific Alliance, aim to integrate economies and markets, to create new opportunities for companies and workers. Digital Economy Agreements (DEAs) are also a priority to navigate the digital age.
2. Human potential: Investing heavily in education and lifelong learning. Singapore's top ranking in the 2022 PISA assessments and the enhanced SkillsFuture Level-Up Programme highlight this commitment. He explained that Singapore aimed to position itself as a Global-Asia node for science, technology, and innovation, and he pointed to the S$28bn allocated to research and innovation as evidence of this commitment.
3. Fair and just society: Fostering a strong tripartite relationship between businesses, workers, and the government. The progressive wage model (PWM) and initiatives such as the CDC vouchers demonstrate Singapore's commitment to equitable growth. The DPM highlighted the positive impact of these policies, noting that real wages for the lowest 20% of earners had increased by 5.8% between 2019 and 2024, a growth rate exceeding the 3.5% increase for median workers.
DPM Heng stressed the importance of supporting vulnerable groups, advocating for a caring and inclusive society.
"While we teach the vast majority to fish, we must also take care of our vulnerable," he said, acknowledging the essential role of charities and social service agencies.
In conclusion, DPM Heng Swee Keat's address called for global collaboration in building societies of opportunity.
"So let us join hands — across sectors, across societies, and across borders – to build a future where every individual, regardless of background, has the chance to pursue their dreams, and to make a meaningful contribution to our people, to peoples around the world and to the planet we live in."
Lead image / DPM Heng Swee Keat's Facebook post (MDDI Photo by Kendrick Wong)
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