Debated in Parliament on 11 Nov 2013.
Ms Tan Su Shan asked the Minister for Trade and Industry in light of our declining non-oil domestic exports despite an uptrend in non-oil re-exports, whether the restructuring policies are causing higher cost structures that are now hurting our export price competitiveness.
Singapore's non-oil domestic exports (NODX) have been weak largely due to challenging economic conditions in the advanced economies, which have similarly affected the exports of other regional economies such as China, South Korea, Taiwan and Malaysia. Barring downside risks to the global economic outlook, Singapore's NODX is expected to pick up modestly in tandem with a gradual recovery in global demand. There are early signs that our NODX may improve in the coming months. For instance, since July, the new export orders sub-index of Singapore's purchasing managers’ index has been on the rise.
Over the longer term, economic restructuring efforts are necessary to raise productivity so that Singapore's exports can remain competitive. Nevertheless, the Government is mindful of the challenges that businesses face in the interim, and has phased in the increase of foreign worker levies and the new Dependency Ratio Ceiling requirements so that businesses have time to adjust. To help businesses cope with rising costs, we have rolled out schemes such as tax credits and funding support for employee training to help businesses, especially SMEs, raise their productivity.
We will also continue to improve our export competitiveness through good-quality Free Trade Agreements (FTAs). Our 20 FTAs in force today with 31 trading partners allow Singapore-based exporters to enjoy competitive advantage through tariff concessions, preferential access to certain sectors and faster entry to markets.
Page: 181
PAPERCUTS