S'pore avows to become 'first-world' economy

S'pore avows to become 'first-world' economy

SINGAPORE (AFP): Prime Minister Goh Chok Tong said Sunday the government wanted to transform Singapore into a "first-world economy" and a "world-class home" to remain competitive in the next millennium.

Speaking to government and community leaders at a parade to mark Singapore's 34th year of independence, he said local companies would be nurtured to world-class level via strategic alliances with key players.

The transition would be made through a first-rate education system, higher degrees of innovation and entrepreneurship, and attracting more multi-national companies.

"Our new mission is to build a first-world economy and a world-class home," Goh told the Singapore leaders in a speech lasting more than two hours.

Singapore marked its independence from Malaysia on August 9.

"To be a first-world economy, Singapore companies must have products which can sell in the world market. We have to compete against the best in the world," he said.

"We have to nurture our own talent. We have also to bring in world-class companies and the best people from outside. Only then will we have the capabilities to transform Singapore into a world-class city."

Goh said he also wanted to turn Singapore into a better place to live so that top local talents would remain and leading foreign talent would be attracted to the island state.

"Singapore should be a fun place to live. People laugh at us for promoting fun so seriously. But having fun is important," he said.

"If Singapore is a dull, boring place, not only will talent not want to come here, but even Singaporeans will begin to feel restless," he said.

Goh said it was no longer good enough for Singapore, whose economy was leading crisis-hit Asia into recovery, to be the best in the region.

"We have to look beyond the region, and strive to become one of the best economies in the world. Our neighbors are breathing down our necks in many areas we are good at," he said.

"They want to surpass or bypass us," he said, citing Malaysia and Hong Kong as examples.

Malaysia is building another port at its southern Johore state bordering Singapore, while Kuala Lumpur and Hong Kong have similar ambitions as Singapore to be the information technology hub for the region.

Reviewing the performance of the Singapore economy, Goh said that although it was recovering from the Asian financial crisis, cost reduction measures would continue.

He said the government would decide later this year whether key employer contributions to a state workers' pension fund should be restored in 2000.

The employer contributions to the Central Provident Fund (CPF) were cut on January 1S# ?99, from 20 percent to 10 percent of workers' salaries to help employers cope with the Asian crisis which erupted in mid-1997.

The CPF cut as well as general wage cuts of five to eight percent were part of moves to slash business costs by S$10.5 billion (US$6.3 billion) a year.