19-8-2024 (SIGNAPORE) In a bold move to bolster Singapore’s economic resilience and foster innovation, Prime Minister Lawrence Wong has announced plans to significantly reduce regulatory burdens on businesses. Speaking at the National Day Rally on 18 August, PM Wong outlined a vision for a more agile and competitive Singapore in the face of evolving global economic challenges.
“Singapore has done quite well in ensuring a business-friendly environment. But over time, the rules have grown, and sometimes overgrown,” PM Wong acknowledged. He emphasised the need for regular, thorough reviews of existing regulations to prune back unnecessary bureaucracy.
Highlighting the government’s commitment to this cause, PM Wong shared a striking example of regulatory streamlining. The process for organising drone shows, once a complex and costly affair, has been dramatically simplified. Previously, a 1,000-drone show would have incurred over $25,000 in compliance costs. Now, thanks to revised regulations, the same show can be organised for just $500.
This dramatic reduction in costs and complexity is emblematic of the government’s new approach. However, PM Wong was quick to point out that such changes come with their own set of challenges. “Relaxing some rules also means accepting more risks, and Singaporeans need to understand and support these changes,” he cautioned.
To spearhead this regulatory overhaul, Deputy Prime Minister Gan Kim Yong will lead an inter-ministerial review committee. This high-level team, announced earlier in 2024, includes several key ministers and is tasked with identifying areas where regulations can be eased without compromising safety or security.
PM Wong framed these initiatives as part of a broader strategy to nurture innovation and enterprise in Singapore. He acknowledged that the city-state’s next phase of economic development would be more challenging, given the changing global landscape.
“The truth is our next phase of economic development will get harder,” PM Wong stated. “We are competing in a different environment.” He pointed to the shift in global manufacturing trends, with developed countries now seeking to reshore critical industries and reshape supply chains in their favour.
Despite these challenges, PM Wong expressed optimism about Singapore’s prospects. He cited recent significant investments from global players like Pfizer, Vanguard International Semiconductor, and AstraZeneca as evidence of Singapore’s enduring appeal as a stable and trusted partner in an uncertain world.
The Prime Minister also praised homegrown success stories, from tech giants like Sea and Grab to smaller enterprises like Morningstar Engineering, a company producing high-quality guitar pedals for the global market.
