Singapore Government Press Release

Media Division, Ministry of Information & The Arts, #36-00, PSA Building, 460 Alexandra Road, Singapore 119963, Tel: 3757794/5

SPEECH BY MR GOH CHEE WEE, MINISTER OF STATE FOR TRADE & INDUSTRY AND COMMUNICATIONS, AT THE UTES 14TH ANNIVERSARY DINNER AND DANCE ON 8 NOVEMBER 1996 AT 7.30 PM AT SUNTEC CITY BALLROOM

Phenomenal changes are taking place world-wide in the postal and telecommunications industries. Over the last few years, we have seen many countries taken steps to reform their postal and telecommunication industries. There was a general shift towards privatisation, deregulation and liberalisation. Governments are beginning to recognise that competition in these industries brings considerable benefits to the economy. It provides the impetus for telecommunication and postal service operators to improve the efficiency of their operations and bring about wider range of services at higher quality and more competitive price.

Such industry changes have also begun to take place in Singapore. We have no choice. Not to do so, will only leave us behind in this highly competitive arena. In 1992, the Government privatised Singapore Telecom and Singapore Post, so as to provide them with greater flexibility to compete effectively in the global market. Over the last four years, the Government through the Telecommunication Authority of Singapore (TAS) had also gradually introduced competition to sectors that are not covered under the exclusive licences granted to the two licensees.

In 1994, for example, TAS licensed ST Mobile Data to provide competition to Singapore Telecom PageLink in the public mobile data service. In 1995, TAS allowed other private companies to provide local express letter service in competition with Singapore Post. From April next year, we will have one more public cellular mobile phone operator and 3 more public radio paging operators to compete with both the incumbents MobileLink and PageLink. In May this year, the Government also announced its decision to advance the expiry of Singapore Telecom's exclusive licence to provide basic telecommunications services from the year 2007 to 2000.

These moves will serve to open up Singapore's telecommunications and postal industries to more competition and encourage service providers to be more efficient and competitive. This competition will inevitably translate to better services for Singaporeans and also enhance Singapore's position as a regional business hub.

Today, the telecommunications and postal services compete in a global market and are more susceptible to global industry structure and technology changes. An example of industry structure changes is the global alliances of telephone companies. As businesses begin to take on a global perspective, telephone companies are seeing a potential demand from the business sector for seamless communications between countries, and many are now grouping together to act as one global service provider so as to better serve multi-national companies around the world. This would have impact on telephone companies who are not responsive to such trends, as they would be left out of the strategic alliances and hence be disadvantaged in the competition for business customers.

For the telecommunications industry, we are entering an age where rapid technology advances are fast making past definitions obsolete. The demarcation lines between telecommunications, broadcast and information technology are beginning to fade. The advent of cable television and the Internet are only some examples of how telecommunications, broadcast and information technologies are beginning to converge. Advanced satellite technologies providing global, trans-border communications are making national boundaries meaningless for telecommunications. For the postal industry, express mail is now more in demand than before due to the fast pace of today's business. The increased use of electronic mail has also created some impact on the postal industry.

These global trends and resulting industry changes will inevitably affect how the telecommunication and postal service providers, especially those formerly operating in a monopolistic environment, operate their business. There will, and has to, be changes. To operate more efficiently and be more responsive to changes in a competitive environment, companies would have to constantly review and adjust its strategy and if necessary restructure its organisation. This will bring about changes to the employment structure.

It is worth mentioning that the success of telecommunication and postal service providers depends to a great extent on how their employees respond to the changes in a new environment. Here is where industry members like yourself, the members of UTES, can play an important role in contributing to the overall success of their employers, and in turn their own benefits, in a dynamic industry.

Given that some changes have already taken place, and more changes will take place, the question is how can people employed in this industry prepare themselves so that they can remain relevant in a dynamic industry and be valuable to the employers. To begin with, the employees would first have to accept that changes are inevitable and that they are working in an industry which is evolving rapidly. To better adapt to these changes, they would have to constantly upgrade themselves and be ready to accept new ways of doing things. They would have to understand that such changes present new opportunities to themselves and the company.

However, as much as these changes will bring about opportunities, it is understandable that they will cause a certain amount of concern and uncertainty among those who are affected by the changes. This is where UTES, which represents workers employed in this sector, can play a significant role in helping to explain to its members the rationale for these developments and to gain their support to compete in a new and dynamic environment. At the same time, UTES can help to feedback to the employers the collective concerns of the members so that they would not be neglected in the new environment. It is only then can both the company and its employees benefit from the changes.

Given the good track record of UTES, I am confident that UTES will be equal to the tasks. I would like to call on all employees in the postal and telecommunications industries to give their full support to UTES as it gears itself up to meet the new challenges.

I understand that this 14th anniversary is also of great significance to UTES as it coincides with its hosting of the 12th Asia Pacific Regional Congress of the Postal, Telegraph and Telephone International (PTTI) here in Singapore. I would like to take this opportunity to extend a warm welcome to all the delegates and observers attending this Asia Pacific Regional Congress.

With that, may I conclude by wishing you a happy 14th anniversary and a bright and prosperous future ahead. Thank you.