Singapore Government Press Release

Media Division, Ministry of Information and The Arts,

36th Storey, PSA Building, 460 Alexandra Road, Singapore 119963.

Tel: 3757794/5

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OPENING ADDRESS BY DR TONY TAN KENG YAM, DEPUTY PRIME MINISTER AND MINISTER FOR DEFENCE, AT THE SINGAPORE COMPUTER SOCIETY 30TH ANNIVERSARY GALA DINNER HELD ON 15 FEBRUARY 1997 AT 7.15 PM HELD AT REGENT HOTEL, ROYAL PAVILION BALLROOM

Let me first thank the Singapore Computer Society for very kindly inviting me to join you at your gala dinner tonight to celebrate the 30th anniversary of the Society.

In the last thirty years, the Information Technology (IT) industry in Singapore has undergone numerous remarkable transformations. These transformation are characterised by two trends. First, the computer has become smaller. Second, the Singapore Computer Society has become bigger. These two trends did not happen by chance. Rather, they reflect the underlying revolution in the IT industry both globally and in Singapore during the last three decades. This revolution in the IT industry in turn is reshaping our way of life : the way we work, the way we learn, even the way we play. Let me explain.

First, the computer has become smaller. The invention of the micro-chip has revolutionised the design and manufacture of computers, putting the computer within the means and availability of the man-in-the-street. The giant mainframe computer that filled a large room thirty years ago was first reduced to a personal computer sitting on a desktop and then to a laptop notebook computer, and now to a personal digital assistant (PDA) which you can hold in the palm of your hand.

The dramatic shrinkage in size and cost is accompanied on each occasion with an exponential expansion in computing power and capabilities. Thirty years ago, no one could imagine that the computer which was originally designed for business and research use would end up in the home as a personal tool for productivity, education and entertainment.

Neither could anyone have imagined that the Internet, which was originally designed for US defence purposes to serve as a communications network robust enough to withstand a nuclear attack, would evolve into a pervasive global information highway which is accessible to users throughout the world.

Second, the Singapore Computer Society has become bigger.

Starting from modest beginnings with 50 members at its establishment thirty years ago, the SCS has steadily grown to encompass a membership of 4,000 professionals today.

This growth in the membership of the SCS reflects the burgeoning growth of the IT industry in Singapore. Thirty years ago, the IT industry in Singapore was small with only a handful of IT professionals and companies. Today, the IT industry in Singapore has grown manyfold to generate annual revenues of $7 billion, serviced by 26,000 professionals and 2,000 companies. The growth rate remains very strong. Growth in sales revenues in the IT sector in Singapore averaged 26% annually over the last five years.

Information technology has become a new platform to enhance the economic development of a country and improve the quality of life of its people. This is especially so for small countries like Singapore limited by constraints in size and resources. Information technology, which depends more on human capital than on natural resources such as land and raw materials, enables us to compete on an almost level playing field with large countries, developing or developed. For this reason, the Singapore Government is committed to nurturing the IT industry to make it a strong and vibrant sector of the Singapore economy.

We have an early headstart and we have made good strides. Singapore is now a major manufacturing centre for hard disk drives, computers and related peripherals and components. We have a dynamic IT services sector of software houses, consultancies and training schools. While our home-grown successes like Creative and Aztech continue to expand their operations globally, top IT MNCs like HP, Compaq, IBM and Apple have continued to deepen and entrench their manufacturing and R&D activities here.

But we must never become complacent, blind to new competition or slow to seize new opportunities. This is because the IT industry is a fast-moving, technology-driven industry that is constantly re-inventing itself. While pioneers in IT industry have certain head-start advantages, new comers with promising products and services can quickly gain market share and become new market leaders. At the technical level, IT is being transformed via the growing convergence of computing, telecommunications, broadcasting and consumer electronics technologies. All forms of information are becoming digital, be it data, text, image, audio or video, and in most applications, integrated as multi-media content. New products and services are generated and made available to consumers through new delivery channels, the majority of which will be on-line and interactive.

In this new digital economy, traditional media industries such as publishing, advertising and entertainment will see a convergence that will blur the line between information and entertainment, and between education and entertainment, creating new products and services with names like "infotainment" or "edutainment".

Multimedia content for these new forms of applications, delivered through CD-ROMs, DVDs and the World Wide Web, will be commonplace. The new multi-media industry comprising hardware, software, networks, services and content, is projected to generate global revenues in excess of US$7.5 trillion by the year 2005.

But nobody really knows how big this global industry will become, as many of the products and services have yet to be invented. What is certain is that it will be a large global industry.

The new digital economy offers Singapore a tremendous and exciting opportunity to become the IT MegaHub of the Asia-Pacific region. We can capitalise on our head-start advantages and existing assets to be the preferred base for high-tech, high value-added IT equipment R&D and manufacturing, an innovation hub for software development, multimedia services and content creation, as well as the centre for electronic commerce.

To make Singapore the IT MegaHub, the Singapore Government will pursue four initiatives.

First, we will further invest in our nation-wide network infrastructure. Singapore today already has one of the best network infrastructure in the region. We will enhance it with higher speed, wider bandwidth and greater reliability so that richer contents can be transmitted between users. We are putting in place the next generation infrastructure that will see us well into the 21st century. A major initiative is Singapore ONE (One Network for Everyone), which will be a showcase of new interactive, multimedia capabilities brought directly to the consumers at home, in schools, in libraries and in offices via state-of-the-art broadband networks.

Second, we will build upon our suite of IT intellectual capital in various industry sectors to boost economic competitiveness. In the last thirty years, Singapore has built up significant IT intellectual capital, experience and expertise, through IT exploitation in various industry sectors and in the Government. This intellectual capital has given us a major competitive advantage in the region, especially in the computerisation of government services. It is time to harvest this wealth of experience and expertise, both to move up to a higher plane of IT exploitation and to export our expertise to the region.

Third, we will continue to foster a strong IT and multimedia industry to generate new and innovative products and services. The Economic Development Board (EDB), the National Computer Board (NCB) and the National Science and Technology Board (NSTB) working in concert, have succeeded in attracting many top IT companies and content providers of the world to invest and operate in Singapore. Their industry promotion efforts will be stepped up. The Government will put in place the infrastructure, conditions and environment to support and facilitate the economic activities of these global companies.

Fourth, we will continue to train and re-train our IT workforce to make them relevant to the new digital economy. Our workers are computer literate. We should now make them computer competent, not just to be able to use IT but to be able to exploit it to invent new products and services that the consumers want. Some of the new skills, that are required, go beyond technical IT training and include creative arts and design. This is where the Singapore Computer Society (SCS) can play a key role and I urge the SCS to join forces with the NCB, the Productivity and Standards Board (PSB), the Singapore Federation of the Computer Industry (SFCI), schools and other educational institutions to identify relevant training programmes to meet the needs of the new jobs in the digital economy.

To succeed as an IT hub, Singapore will leverage on investments, technologies and talents from the developed countries such as the United States, the Europe and Japan. We need effective coordination of industry promotion efforts at the national level. To position Singapore as an attractive IT base, we also need an integrated overview of the technology, infrastructure, manpower and other resource needs of the industry. To facilitate such co-ordination, the Government has appointed the NCB to be the lead agency to spearhead the national efforts to make Singapore the IT MegaHub of the Asia-Pacific region.

NCB alone is note adequate for the job; efforts must come from many Ministries, agencies, institutions and the private sector. But NCB will be the master planner and leader of this national effort.

To enhance the effectiveness of NCB as the IT promoter and planner for Singapore, the Government has decided to table the necessary legislation in Parliament to transfer the NCB from its parent ministry, the Ministry of Finance to the Ministry of Trade & Industry.

This will bring the NCB under the same parent ministry as EDB and NSTB. Working closer together, the three agencies will help to nurture the IT industry and harness the opportunities of the new digital economy to turn Singapore into the IT MegaHub of the Asia-Pacific.

In the light of the above developments, the Singapore Computer Society can play a key role in helping to raise the professional standing of the IT profession in Singapore. The SCS has done a commendable job in increasing the technical awareness and competence of its members through open knowledge sharing in seminars, conferences, special interest groups and technical publications. With its strong leadership and clear vision, I am confident that the SCS will continue to promote professional and technical development of its members and continue to contribute to the achievement of national IT goals.

In November last year, the Singapore Computer Society announced the launch of the IT Leader Awards. The objective of the Awards, to be given annually, is to encourage and sustain entrepreneurial talent, innovation and initiative in Singapore. Tonight, the Society will confer Awards on four individuals who have made outstanding contributions to the IT profession, the development of the IT industry and the use of IT in Singapore. May I take this opportunity to congratulate them.

SCS has an exciting future ahead and I wish the Society and all its members every success in the years ahead.

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