Speech by Mr Tharman Shanmugaratnam, Minister for Education and Second Minister for Finance, at the NTUC Financial Services Cluster National Day Observance Ceremony 2006 on Monday, 21 August 2006, at 9.30 am, at NTUC Centre Auditorium

SPEECH BY MR THARMAN SHANMUGARATNAM, MINISTER FOR EDUCATION & SECOND MINISTER FOR FINANCE, AT THE NTUC FINANCIAL SERVICES CLUSTER NATIONAL DAY OBSERVANCE CEREMONY 2006 ON MONDAY, 21 AUGUST 2006, AT 9.30AM, AT NTUC CENTRE AUDITORIUM

1. National Day is a special day for all Singaporeans. Our nation has come a long way since 1965. We have much to cheer and celebrate as we look back on 41 years of nation building in our history as a sovereign nation.

2. The Singapore economy turned in a strong performance in the first half of this year. Job growth last year was the strongest in a decade. Unemployment rate has remained low while wages and bonuses are improving. All these show that our strategies in restructuring the economy are working.

Strong Growth & Outlook in Financial Sector
3. Specifically, the financial services sector has continued to expand with broad-based growth across the industry. Strong profits were reported by the major banks and financial institutions. The fund management segment in particular was spurred by buoyant returns from regional and emerging markets.

4. Singapore's development as an international financial centre began in the late 1960s. Over the years, our sound economic and financial fundamentals, conducive regulatory and business environment, excellent infrastructure, and skilled and educated workforce, have attracted many reputable international financial institutions to set up operations in Singapore. Today, financial services account for about 12% of Singapore's GDP.

5. The outlook for Singapore’s financial services industry is promising. We have done well in asset management with assets reaching S$720 billion at the end of 2005, a 24% increase from 2004. Given the increasing wealth in Asia and the attractiveness of the Asian markets, there is further growth potential in this area and in other alternative investments such as hedge funds, real estate and infrastructure investments, and, commodity derivatives.

6. On the international front, Singapore will soon be hosting the 2006 Annual Meetings of the Boards of Governors of the International Monetary Fund (IMF) and World Bank Group next month. This major event will see the gathering of key policy makers and business leaders worldwide. The success of the event will enhance Singapore’s reputation and status of Singapore as a regional financial hub.

Skills Upgrading Towards Lifelong Employability
7. One of the main contributing factors of Singapore’s success both in the financial services sector, and as a nation, is our workers. The past few years had been a bumpy ride for workers in Singapore. Our working environment has changed tremendously. Globalisation and technology have made the world smaller and more sophisticated. Product cycles are getting even shorter. Competition for capital, talent and resources is keen. Lifelong employment is now an exception, rather than the norm. Skills and knowledge now command a far higher value than manual labour. The attitudes and resilience of our workers is thus commendable. Amidst all these changes, our workers have proven that they are not only able to adapt, but also embrace the new environment.

8. With the pick-up in the economy, workers now look forward to being rewarded for their sacrifices in the past. While we expect more to be employed as the economy improves, we must continue to press on with efforts to prepare ourselves and our workers for the challenges ahead. This growth period in fact provides a timely window for workers to enhance their skills set and employability through skills training and upgrading.

Financial Industry Competency Standards (FICS)
9. In particular, I am pleased to note that key stakeholders in the industry such as the IBF, NTUC, WDA, and MAS have taken the initiative, with ongoing consultation, in reviewing the competency framework for the financial industry through the Financial Industry Competency Standards (FICS).

10. The FICS, as a national framework, aims at raising the quality of our financial workforce and training providers. It comprises a set of standards with a curriculum guide that relates to the competencies required of practitioners in specific job roles.

11. The FICS will help to ensure a structured process towards skills training and upgrading in the financial sector. As a comprehensive and quality accreditation system, its key desired outcome is that workers at all levels will have the opportunity to certify their skills competency under the FICS.

Strong Tripartite Framework as Key Success Factor
12. It is indeed significant that the financial services unions, together with management, have come together to celebrate National Day today. This gathering reflects our shared commitment towards the growth of the Singapore economy, and the unity and strength of our tripartite framework.

13. We have built a unique spirit of solidarity and resilience through our tripartite framework of cooperation. The framework has enabled us to restructure and reposition our economy, so as to grow and create new jobs. Our strong tripartite relationship will remain a key success factor in bringing Singapore to even greater heights and a brighter future for many years to come. Our past history, though short, tells us that as long as we have the will and the guts, we can make the future we want for ourselves.

Conclusion
14. We have much to celebrate. As a nation that is 41 years old, we have overcome the odds to build a strong and secure nation - a place where different races work and live harmoniously together, where everyone can pursue their dreams and where workplace issues can be resolved through a strong tripartite framework built on a firm foundation of trust and hard work.

15. Our workers' future is Singapore's future. Our country may not have the natural resources that many others have. But we have a cohesive people and resilient workforce that have proven, time and again, that we are able to face up to the challenges and emerge victorious and stronger.