DPM Heng Swee Keat at the International Conference on Societies of Opportunity

Excellencies
Distinguished Guests
Ladies and Gentlemen,

Good morning, and welcome to all, especially those who have joined us from overseas. 

Let me first congratulate the Ministry of Social and Family Development, and the Institute of Policy Studies, for organising this inaugural conference. 

I am glad that in these uncertain times, we are seeing policymakers, researchers and practitioners come together, to exchange ideas on creating “Societies of Opportunity”.

20th century: Of human development and opportunity 

In the 20th century, we witnessed significant progress in human development, and the expansion of opportunity for people all over the world. 

With higher outputs of food, and better healthcare, the global population quadrupled, and life expectancies more than doubled.

Global GDP grew about 20-fold, lifting billions of people out of absolute poverty.

The civil rights movement, decline of colonialism, and women’s rights movement granted new freedoms and opportunities to many. 

How did we achieve this? 

In my view, following two devastating World Wars, we made a commitment to seek peace through expanding prosperity.

The Bretton Woods Agreement, established the global monetary system, and led to the formation of the IMF and World Bank.  

The General Agreement on Tariffs and Trade, which evolved into the World Trade Organisation (WTO), laid the rules for global trade.

These institutions formed the bedrock of globalisation, which allowed the flow of people, ideas and capital across borders.

This allowed societies, especially those which embraced trade and investment, to create unprecedented opportunities for their peoples. 

Multi-National Enterprises established networks that maximised the comparative advantages of various countries and regions. 

They brought technology and advanced production know-how, while benefitting from lower costs of production.

Other technology advances – such as aviation, containerised shipping, mechanised factories, and advanced telecommunications – accelerated this global division of labour.

Global finance flowed to fund infrastructure investments and trade, especially in developing countries. 

In fact, almost all economies adopted market principles to optimise their allocation of scarce resources. 

Even Communist regimes, like China and Vietnam, changed their development direction after studying how competitive market economies created opportunities for their peoples. 

Deng Xiaoping’s reform and opening up of China, lifted hundreds of millions of Chinese out of poverty. China’s subsequent entry into the WTO in 2001 gave it a further boost, and I was in Qatar for the Doha Round, when China entered the WTO.

The world benefited from this huge inflow of labour and capital. For instance, some estimate that 70-80% of the goods sold in Walmart and on Amazon are made in China.

While China is the clearest illustration of the benefits of global cooperation, globalisation has more broadly created opportunities for workers all over the developing world, with billions of workers finding employment, and consumers enjoying cheaper goods and services.

3Ds: De-globalisation, Digital Disruption, Demographics

But today, we are facing very sharp changes to the global economy, and world order, and I will simplify them as 3Ds. 

The first D is de-globalisation, or a decline in globalisation. 

In the US and many advanced economies, the benefits of globalisation have not been evenly distributed. 

Factory jobs, that used to be the bedrock of middle-class employment, have been declining. 

These workers, and their communities, face stagnating wages, or worse, job losses.

To address this, the US is trying to bring manufacturing back – to Make America Great Again. 

It has declared tariff wars not just on China, but on allies and trade partners including Canada, Mexico, the EU and large parts of ASEAN. Even Singapore, which has a Free Trade Agreement with the US.

These ‘reciprocal tariffs’ have created significant uncertainties for the global economic order, and affects investments.

Some countries are already taking retaliatory actions, and more may do so. This will further set back global trade and investments and weaken growth all around the world. 

Just last week, the IMF downgraded its forecasts for global growth in 2025 and 2026 to 2.8% and 3% respectively. A significant reduction from its 3.3% projection just three months back, in January.

The second D is digital disruption, brought about by rapid technology advances.

In its latest Future of Jobs Report, the World Economic Forum (WEF) projects that almost 40% of existing skillsets by workers, will be transformed, or made obsolete, by 2030. 

In particular, AI and information processing technology, are expected to create 11 million jobs between 2025 and 2030, while simultaneously displacing 9 million jobs. 

Besides AI, other technology inflections like robotics, automation, biotech and quantum technology are poised to reshape every industry. Even highly skilled professions such as accounting, law and financial services. 

On the other hand, technology can augment our workers by taking over highly structured, repetitive tasks. 

I visited China and France earlier this year, and saw how these countries are harnessing AI to augment doctors performing surgeries, and to optimise air traffic, among other crucial tasks. This is just the tip of AI’s vast constructive potential.

As our economies become increasingly digitalised, we must watch for two challenges, to ensure a continued sense of hope and social mobility. 

First, technology can create a winner-takes-all economy, as market leaders develop huge benefits through economies of scale and network effects.

Second, developing countries will need to find new growth models, as abundant and cheaper labour may no longer be a strong comparative advantage. 

The third D is demographics. Longer life expectancies and falling fertility rates will lead to ageing populations and a shrinking workforce. 

Many societies are becoming super-aged, including Singapore where by 2030, one in four Singaporeans will be aged 65 or above. 

Technology presents an opportunity to augment our workforce, so that seniors can enjoy longer and more fulfilling careers. 

Through longer work-spans, they can better save for longer retirements, thereby reducing the fiscal needs on Governments and on pension systems. 

The silver economy will also present new sources of demand – for example in caregiving, silver tourism, or learning for seniors.

To tap on this potential, substantial reskilling and upskilling must be made available to our older workers, particularly during their working years. 

Building Societies of Opportunity together

With the strong headwinds posed by the 3Ds that I spoke about – Deglobalisation, Digital Disruption and Demographic changes, how can we continue to build Societies of Opportunity, in Singapore, and around the world?

How can we work together, to build societies where everyone can maximise their potential, and pursue their aspirations? 

So, let me use Singapore’s experience to share a few suggestions, and invite us to come together to discuss and to partner. 

Economic partnerships for new opportunities

First, while the largest economy in the world is retreating from globalisation, there are many more countries that continue to believe in the global division of labour.  

We are building partnerships with these countries, to integrate our economies and markets, so as to create new opportunities for our companies and workers. 

Singapore has a network of 27 Free Trade Agreements in force, with partners like ASEAN, Japan, Korea, India, China, the EU and the US. 

We are part of the Regional Comprehensive Economic Partnership (RCEP), the largest free trade bloc in the world with 15 countries in ASEAN, China, Japan, Korea, Australia and New Zealand. 

This week, our 28th FTA, with the Pacific Alliance, which comprises Chile, Colombia, Mexico and Peru, will come into force. 

To create opportunities in the digital age, we are upgrading trade for the digital economy. 

Singapore has signed three bilateral Digital Economy Agreements (DEAs) with Australia, Korea, and the UK. A fourth agreement involves 4 countries - Chile, New Zealand, South Korea and Singapore. ASEAN countries are also negotiating a similar agreement, which can unlock up to US$2 trillion in value from the region’s digital economy by 2030.

Now these initiatives will enable all of us to unlock value and create opportunities for our people in the digital age. And this is especially important for a small place like Singapore, where trade is three times our GDP. 

Strengthening human potential as a Global-Asia node for science, technology and innovation

The second way that we are seeking to create opportunities is to harness technological advances, to develop products and solutions which are more efficient, more useful, more relevant for consumers, for ourselves, and for our partners. 

We seek to position Singapore as a Global-Asia node for science, technology and innovation. 

Between 2021 and 2025, the Government committed S$28 billion to strengthen our Research, Innovation and Enterprise (RIE) ecosystem. 

We are supporting universities and companies in research and commercialisation, and to deepen our scientific understanding of important issues. 

For example, one particular area that we are investing in is research in Human Potential – how can we both educate and develop our young better, and also enable working adults to continue learning, to stay relevant for the economy of the future? What is the future of human skills and human competencies in the age of AI and robotics?

Singapore has invested heavily in education to develop our young to their fullest potential.

The results have been encouraging.

In the latest Programme for International Student Assessment, or PISA in 2022, Singapore was ranked top globally in mathematics, science and reading.

To ensure opportunities for all, we have also diversified our pathways for higher learning. 

Besides our 6 autonomous universities, we have started the new University of the Arts Singapore, which accepts its first cohort this year. 

We also have 5 polytechnics and 3 ITE colleges, offering students diversified programmes in various domains.

In tandem with this, we are creating opportunities for our workers by heavily subsidising lifelong education and training. 

Last year, we enhanced the SkillsFuture with a Level-Up Programme. This enables Singaporeans aged 40 years and above to pursue a substantive skills reboot, so that they can be future-ready. 

The new SkillsFuture Job Seeker Support Scheme also provides transitional financial support, for displaced job seekers as they transition into new jobs to fit their skillsets, interests and experiences. 

As a small node in the global economy, Singapore cannot block the forces of global change. 

Instead, we must create opportunities for our people, by staying relevant and useful to the world. 

I am glad that our people embrace this attitude, and seek to invest in lifelong learning. In a similar way, Singapore as a small open economy cannot erect walls around ourselves, but must instead build bridges with people around the world.

Building a fair and just society

Third, we aim to build a fair and just society, as our founding Prime Minister Lee Kuan Yew envisioned. 

The strong tripartite relationship, amongst businesses, workers and Government, has been a cornerstone to help uplift our workers and companies. 

For instance, the National Trades Union Congress (NTUC) played an integral role in the introduction of the progressive wage model (PWM) in 2012. 

Today, lower wage workers in nine sectors and occupations, including our cleaners and security guards, benefit from skills upgrading, and clear career progression pathways. 

The NTUC has also been an excellent partner in our journey to upgrade and restructure the Singapore economy. 

When I chaired the Future Economy Council from 2017 to 2023, we introduced Industry Transformation Maps in 23 sectors.

The results are promising. From 2016 to 2023, our economy achieved real value-added growth of 2.8% per annum – quite high amongst small, advanced economies. 

Over the same period, our labour productivity, measured in terms of real value added per hour worked, also grew by 2.1% annually. 

I am glad that the NTUC continues to grow its role in upskilling and redeploying our workers through its 2,700 Company Training Committees, and the NTUC Job Security Council. 

Such economic transformation is important because it gives us the dry powder to fund additional support, particularly during periods of external shocks. 

During the COVID pandemic, we introduced CDC vouchers to help Singaporean households defray the costs of living, while supporting hawkers and heartland merchants. 

More recently, amidst high inflation globally, we enhanced the Assurance Package at Budget 2025, to provide households with more than $10 billion of support for their daily expenses, including $800 worth of CDC vouchers this financial year, to each of the 1.3 million Singaporean households.

All of us know the saying – “Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.” It sums up well our approach to sustainably create opportunities in our society. 

This is why we continue to invest heavily in housing, education and healthcare, and provide lower-income Singaporeans with $4 of support for every dollar of tax that they pay. 

So I am heartened that salaries of lower wage workers here have risen at a quicker pace compared with the workforce as a whole. 

Real wages at the 20th percentile rose cumulatively by 5.8% from 2019 to 2024, higher than those of median workers at 3.5%. 

This meant that even though the cost of living rose, the wages of lower-wage workers rose even more. 

But at the same time, there are vulnerable groups in our society, with disabilities or special needs, or falling into difficult situations.   

While we teach the vast majority to fish, we must also take care of our vulnerable. 

We can all play a part, and I am very glad that many in our society are doing excellent work in charities, in philanthropies, in social service agencies, giving time, money and your energy to support those with needs.   

The Government will continue to support these efforts through matching grants and tax deductions, and to help our Social Service Agencies build new capabilities through initiatives like the Transformation Sustainability Scheme. This will ensure that donor money is put to the best use to support those with needs.

Ultimately, we must continue to build a caring and inclusive society, and a society with strong values, where every member is cherished and supported. Families play a critical role in these efforts, and Minister Masagos places a very strong emphasis on the family as a first line of support. Projects like ComLink+ seeks to not only uplift individual members of the family, but the entire family. In the same way, we in Singapore are one big family.

Across the world, many collaborations are underway to uplift the vulnerable. In fact, all of you who have flown in overseas, to attend this conference, are part of this meaningful work. 

So, this forum provides an excellent opportunity to explore and learn from one another, to explore how we can work together, to create shared opportunities, not just for our own people but for peoples around the world. We must share a sense of our common humanity.

Conclusion

Let me conclude. The journey to building Societies of Opportunity is an ongoing one.

The 3Ds that I spoke about – deglobalisation, digital disruption, and demographic changes will reshape our economies and societies in the years ahead. There will be winners and losers.

But just as humanity rose to the challenges of the 20th century, to create new opportunities for all, so can we! 

I have shared some experiences of how Singapore is strengthening our economic partnerships, investing in human capital, and developing a fair and just society. 

I hope that these will spark off new discussions, so that we can learn together, and work together to tackle our shared challenges. 

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.

I hope that this Conference will inspire all of us to build societies of opportunity for current and future generations, where growth is shared, change is embraced, and everyone is empowered to build a better tomorrow. 

I wish you a fruitful discussion ahead, thank you very much. 

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