SPEECH BY MR MOHAMAD MAIDIN PACKER MOHD, PARLIAMENTARY SECRETARY TO MINISTER FOR EDUCATION AND MP (LEADER), AT THE 103^RD INTER-PARLIAMENTARY CONFERENCE, 30 APR - 6 MAY 2000, AMMAN, JORDAN ON THURSDAY, 4 MAY 2000 AT SINGAPORE TIME 8.00 PM

"GENERAL DEBATE ON THE POLITICAL, ECONOMIC AND SOCIAL SITUATION IN THE WORLD - GLOBALISATION"

2      Many people view the East Asian crisis as a crisis of globalisation. Because of the long track record of East Asia's economic success, the crisis has raised disquiet over the consequences of globalisation. The potential downside to globalisation was brought to the forefront of intellectual and political debate. Among other outcomes, the crisis had dampened the enthusiasm of emerging economies to support a new round of trade negotiations at Seattle.

3     We are living in an era of rapid change. Whatever our stand on globalisation, whether we embrace or reject it, we cannot ignore the reality that globalisation is unstoppable. It is then in our interest to maximise the opportunities and minimise the risks and costs of globalisation. This requires new mindsets and new capabilities. To do nothing in responding to globalisation will surely be courting disaster.

4     As a small country, Singapore recognises that we have to respond coherently and effectively to the emergence of the New Global Economy. Our response is along four lines. First, we will further deregulate and liberalise our services sector. We will also deepen and broaden our capital markets. Recognising the importance of IT literacy in the New Economy, we will build the supporting IT infrastructure and train our people to be Internet savvy. Finally, we realise that creativity and entrepreneurship are key to a nation's wealth in this age of information explosion. We will therefore foster a creative and entrepreneurial spirit in our people so that we will innovate and create wealth, in addition to adding value to other people's products. Underlying these four approaches is the decision to participate fully in the global economy. We find that this is the best way to both maximise the benefits and minimise the downside to globalisation.

5     The East Asian financial crisis had exposed the structural flaws of many East Asian countries. Despite the economic hardship that some countries went through, it was encouraging to note that the region as a whole remained opened towards foreign trade and investments even during the crisis period itself. This could be part of the reason for their relatively quick economic recovery subsequently.

6     For globalisation to truly benefit all who participate in the global economy, I believe that we should take a balanced approach towards globalisation.

7     First, I believe that all countries should participate fully in the global economy. We need to reaffirm our commitment to a open multilateral trading system, because this is still the best means through which our voices will be heard in the global economy. While Seattle may have been a temporary setback, we should quickly step up efforts to start a new round of world trade negotiations, so that the momentum is not lost. To have a successful New Round, the developed countries should settle their own differences and move beyond narrow domestic interests. For the WTO as a whole, there is also a need to accommodate the concerns of the developing countries.

8     Because of the unprecedented and profound change brought about by globalisation, we also need to change our mindset if we are to be successful in the global economy. We need to revamp and innovate our work processes, our way of thinking and our assumptions if we are to be able to add value. We also need to constantly upgrade and acquire new skills so that we can move beyond value adding to value creation. We must be mindful that in the New Global Economy, technologies are constantly shifting and product cycles are rapidly shrinking. Constantly upgrading our skills is the only really sustainable way of remaining relevant to the market.

9     However, we must not forget that there are those in our society who may not have the inclination nor ability to catch up with a rapidly changing global economy. We must take special efforts to provide them with the necessary support so that they too can have access to the basic infrastructure and can acquire the skills that is needed for them to stake out their position in the global marketplace. Societies that ignore this important aspect will find themselves split into those who are globally attuned and those who are not.

10   To conclude, globalisation will fundamentally change the way in which we all live. Persuading those disoriented by globalisation and technological changes will require skilful diplomacy and the artful balance of competing interests. Nevertheless, this will have to be done. Otherwise, those who reject globalisation will find themselves even more marginalised from the rest of the world. This surely cannot be good for world stability.