Facing uncertainty with resolve.

Singapore may have declared DORSCON Green in its fight against the Covid virus and pandemic, but the red light continues to prevail globally as Singapore, and the rest of the world braces a period of uncertainty.

The Singapore Indian Chamber of Commerce and Industry (SICCI) found it most opportune to discuss “Navigating Global Uncertainty- Implications to the Singapore Economy” at a fireside chat for its members.

And two eminent Singapore economists shared their thoughts with the audience on various issues. The speakers were Mr. Prakash Kannan , Chief Economist and Head of Total Portfolio Macro & Markets, and Mr. Manu Bhaskaran , Founding Partner, President, and Chief Executive of Centennial Advisors Asia.

The audience included His Excellency Mr. Kumaran Periasamy , India’s High Commissioner to Singapore, and other senior officials from the Indian High Commission, Mr. Leong Sing Chiong, Deputy MD from the Monetary Authority of Singapore, and Mr. Sopnendu Mohanty , Head of Fintech. Mr. Lennon Tan . President of the Singapore Manufacturing Federation, partners from SINDA and Indian Heritage Centre, and members and well-wishers of SICCI.

The fireside chat was jointly presented to SICCI members by Delteq, which was represented by Mr. Kelvin Tong , the company’s Country Head (Singapore Sales).

A Topic Close to Heart?

Setting the stage for the discussion, SICCI’s Chairman, Mr. Neil Parekh , who moderated the fireside chat, noted that the word uncertainty and the ways to tackle it head-on was something close to the hearts of all Singaporeans - the business community and citizens alike.

“The ongoing war in Ukraine just turned one, and there is no sight of it ending any soon. Efforts continue to cool down tensions between the United States and China. On the greener side, Singapore has declared DORSCON green, and activities returned to normalcy. Amidst all this good news, what are your concerns as businesspeople and industry leaders gathered today? We want to hear from you. At the outset, this fireside chat is more than what the finance minister announced in Budget 2023 in Singapore’s Parliament. It’s about what concerns you about the global financial, political, and economic situation. Budget 2023 is only one part of the equation,” said Mr. Parekh.?

The Speakers’ Presentations

“Prepare, Don’t Predict”. That’s an investment philosophy that Mr. Prakash Kannan espouses, and is something important today as the world undergoes this period of uncertainty. Mr. Prakash’s speech to the audience covered key aspects of the investment environment that addressed some of the relevant macro questions of the day.

Mr. Manu Bhaskaran shared three critical outcomes of tackling the uncertainties in his address. First, he noted that although the economic numbers will look poor in the coming months, the economy should be resilient given offsetting factors such as the large volume of new investment commitments secured last year, and the continuing rebound in covid-affected sectors. Second, Mr. Manu pointed out that a scenario that featured higher interest rates, a major energy transition, and a slower China would make for a challenging environment for Singapore to navigate. Third, this troubled global environment called for bolder government-led strategies as well the bottom-up responses from the corporate sector.

The Fireside Chat

Kicking off the dialogue session was SICCI’s Chairman, Mr. Neil Parekh, who wanted to know the views of the two economists about the prospects that India will throw up in the years to come bearing in mind that many of SICCI’s members have business interests in India and India too has been very much in the news these days. India is also the Chairman of the G20 group in 2023.

The panelists noted that India is probably the only economy in the world where you could make a good case for upgrading your estimating of trend growth which is a scarce phenomenon for such a large economy. Many reforms have been put in place which set the stage for India moving forward.

The President of the Singapore Manufacturing Federation, Mr. Lennon Tan, asked what businesses can do to prepare for the period of uncertainty and maintain their competitiveness. In reply, Mr. Manu challenged Singapore’s businesses to look beyond Singapore and traditionally favoured investment destinations such as China and be prepared to take more risks by investing in Southeast Asian economies such as Indonesia. Policy makers need to support this through measures such as negotiating agreements with our neighbouring countries so that there could be more economic integration with our immediate hinterland.?

Coming Up Next

The dialogue has been set for 30 March 2023, and the subject we will discuss is the impact of the green economy and what small and medium enterprises can do to harness opportunities.

It is entitled The Green Transition: Challenges and Opportunities for SMEs. Two government leaders will take part in the fireside chat. They are the Senior Minister of State for Finance and Transport, Mr. Chee Hong Tat and Minister of State for Culture, Community and Youth and Trade and Industry, and SICCI’s Advisor, Mr. Alvin Tan.

We are looking forward to members joining us for this event.

Jayanthi Manian Jamuna Rani Govindaraju Chris Leong Viswa Sadasivan Bhavani S K Shabbir Hassanbhai Bobby Hiranandani N Varaprasad Sopnendu Mohanty Lennon Tan Jayasutha Samuthiran S.Venkita Padmanabhan (Venkat) Maneesh Tripathi Parminder Singh