Content
- Article - SINGAPORE'S 'TIGHTER FISCAL POSITION': CAUSE FOR CONCERN?
- 'Adapt & Grow' - Policies for Singapore's labour force
- Video - QUANTITATIVE EASING - HOW IT WORKS
- Video - THE IMPOSSIBLE TRINITY - 60 SECOND ADVENTURES IN ECONOMICS
- Article - MAS TO STOP SINGAPORE DOLLAR FROM RISING IN SURPRISE EASING OF MONETARY POLICY
- Article - MACROECONOMIC POLICIES: SINGAPORE 2016
- Economics trip 2016 - Celia Peck, Class 1506
Singapore's 'tighter fiscal position': Cause for concern?
Finance Minister Heng Swee Keat outlined his game plan for helping Singapore businesses and households overcome a cyclical and structural slowdown in his Budget speech last Thursday (Mar 24). While much has been said of the support measures announced, less attention has been paid to Mr Heng’s mention of Singapore’s “tighter fiscal position” in the longer term.
Although he flagged that Singapore’s longer-term expenditure needs are expected to grow faster than revenues, Mr Heng did not go into specifics on how the Government will finance this increase in spending.
Singapore Management University (SMU) Finance Professor Annie Koh explained that there are no straightforward answers or direct solutions to tackling the tighter fiscal position. "If we do connect all pieces correctly - transform the industry and the companies and the skills to go with it - then the investments (made in Budget 2016) are worth their while", she said.
Because we will then get to benefit from the fruits of the transformation and revenue growth will follow suit three to five years from now”.
The investments Prof Koh is referring to are represented by the sizeable primary deficit the Government is prepared to run. If realised, 2016 will record the largest-ever primary deficit, as well as the first time in about 10 years that the Government books two consecutive primary deficits.
Although this is rare for a non-recession year, economists and tax consultants Channel NewsAsia spoke to said there is little cause for concern over Singapore’s tighter fiscal position and long-term fiscal sustainability. Here’s why:
Present levels of spending are within means, and may not continue
Nomura economist Brian Tan pointed out that although Budget 2016 projects a primary deficit of S$4.99 billion, the overall Budget balance is in a surplus of S$3.4 billion, due to a sizeable S$14.7 billion contribution from net investment returns.
The operating balance is also expected to be in a surplus of S$14 billion, which means “revenues are sufficient to pay for civil service salaries and other expenses to keep the Government running”.
Although he flagged that Singapore’s longer-term expenditure needs are expected to grow faster than revenues, Mr Heng did not go into specifics on how the Government will finance this increase in spending.
Singapore Management University (SMU) Finance Professor Annie Koh explained that there are no straightforward answers or direct solutions to tackling the tighter fiscal position. "If we do connect all pieces correctly - transform the industry and the companies and the skills to go with it - then the investments (made in Budget 2016) are worth their while", she said.
Because we will then get to benefit from the fruits of the transformation and revenue growth will follow suit three to five years from now”.
The investments Prof Koh is referring to are represented by the sizeable primary deficit the Government is prepared to run. If realised, 2016 will record the largest-ever primary deficit, as well as the first time in about 10 years that the Government books two consecutive primary deficits.
Although this is rare for a non-recession year, economists and tax consultants Channel NewsAsia spoke to said there is little cause for concern over Singapore’s tighter fiscal position and long-term fiscal sustainability. Here’s why:
Present levels of spending are within means, and may not continue
Nomura economist Brian Tan pointed out that although Budget 2016 projects a primary deficit of S$4.99 billion, the overall Budget balance is in a surplus of S$3.4 billion, due to a sizeable S$14.7 billion contribution from net investment returns.
The operating balance is also expected to be in a surplus of S$14 billion, which means “revenues are sufficient to pay for civil service salaries and other expenses to keep the Government running”.
Singapore's primary and overall budget balance over the years. If realised, 2016 will record the largest-ever primary deficit, as well as the first time in about 10 years that the Government books two consecutive primary deficits. (Infographic: data.gov.sg)
In addition, SMU’s Prof Koh noted that what the Government does in one year is “not a reflection of future budgets to come”. Describing Budget 2016 as an “investment budget”, she explained that the higher costs are incurred as the Government ramps up “investing in people and hardware, and innovation business models and Smart Nation solutions”, and this should taper off when results begin to show.
There is room to raise taxes
At 7 per cent, Singapore’s Goods and Services Tax (GST) rate “is still one of the lowest in the world”, said Mrs Chung-Sim Siew Moon, head of tax services at Ernst & Young Solutions, noting that the last rate increase was in 2007. Mrs Chung-Sim also said that “sin” taxes in the form of higher excise duties on goods like tobacco and alcohol could be raised in the coming years.
While there is scope for taxes to be raised, Nomura’s Mr Tan said that Budget 2016 “was not the time” for it, given the “challenging growth outlook”. Over the longer term however, Mr Tan said: “There may be room to adjust personal income tax rates on higher income earners and GST, the latter of which will likely be accompanied by increased GST Vouchers to offset its impact on lower-income earners”.
New sources of revenue can be opened up
New tax rules can be introduced to better reflect new business models and modes of consumption, and one example of this is the taxation of online transactions, said Mr Richard Mackender, indirect tax leader at Deloitte Singapore.
“The Government may consider broadening the GST base by taxing online transactions,” said Mr Mackender, citing the example of countries such as Australia, Japan and Korea. “Measures could include imposing GST on the online purchase of services, as well as reducing or removing the postal exemption on the importation of low-value goods.”
In addition, SMU’s Prof Koh noted that what the Government does in one year is “not a reflection of future budgets to come”. Describing Budget 2016 as an “investment budget”, she explained that the higher costs are incurred as the Government ramps up “investing in people and hardware, and innovation business models and Smart Nation solutions”, and this should taper off when results begin to show.
There is room to raise taxes
At 7 per cent, Singapore’s Goods and Services Tax (GST) rate “is still one of the lowest in the world”, said Mrs Chung-Sim Siew Moon, head of tax services at Ernst & Young Solutions, noting that the last rate increase was in 2007. Mrs Chung-Sim also said that “sin” taxes in the form of higher excise duties on goods like tobacco and alcohol could be raised in the coming years.
While there is scope for taxes to be raised, Nomura’s Mr Tan said that Budget 2016 “was not the time” for it, given the “challenging growth outlook”. Over the longer term however, Mr Tan said: “There may be room to adjust personal income tax rates on higher income earners and GST, the latter of which will likely be accompanied by increased GST Vouchers to offset its impact on lower-income earners”.
New sources of revenue can be opened up
New tax rules can be introduced to better reflect new business models and modes of consumption, and one example of this is the taxation of online transactions, said Mr Richard Mackender, indirect tax leader at Deloitte Singapore.
“The Government may consider broadening the GST base by taxing online transactions,” said Mr Mackender, citing the example of countries such as Australia, Japan and Korea. “Measures could include imposing GST on the online purchase of services, as well as reducing or removing the postal exemption on the importation of low-value goods.”
Government spending has grown at a faster rate than revenue in recent years. (Source: Ministry of Finance; Infographic: Linette Lim)
There are also more aggressive moves that can be taken, such as tweaking the Constitution to allow the Government to spend its revenue from land sales, or to spend a greater proportion of the net investment returns contribution (NIRC) from GIC and Temasek. Currently, land sales proceeds and 50 per cent of the NIRC are locked up in the reserves and do not form the overall fiscal position.
But analysts like CIMB Private Banking economist Mr Song Seng Wun said that it is unlikely that things will come down to that, as the rules enshrined in the Constitution are safeguards against proliferate spending.
The Government has "surplus" in the tank
PwC Singapore tax leader Mr Chris Woo said Mr Heng hinted “that the Government has kept aside enough for it to take action in case economic conditions worsen”. This "surplus" in the tank, according to Deloitte Singapore tax partner Mr Daniel Ho, is deliberately set aside in anticipation of the recommendations from the Committee on the Future Economy (CFE), which are expected at the end of this year.
“We can expect that many of the CFE’s recommendations will require (and receive) funding support through the 2017 and later Budgets,” added Mr Ho.
There are also more aggressive moves that can be taken, such as tweaking the Constitution to allow the Government to spend its revenue from land sales, or to spend a greater proportion of the net investment returns contribution (NIRC) from GIC and Temasek. Currently, land sales proceeds and 50 per cent of the NIRC are locked up in the reserves and do not form the overall fiscal position.
But analysts like CIMB Private Banking economist Mr Song Seng Wun said that it is unlikely that things will come down to that, as the rules enshrined in the Constitution are safeguards against proliferate spending.
The Government has "surplus" in the tank
PwC Singapore tax leader Mr Chris Woo said Mr Heng hinted “that the Government has kept aside enough for it to take action in case economic conditions worsen”. This "surplus" in the tank, according to Deloitte Singapore tax partner Mr Daniel Ho, is deliberately set aside in anticipation of the recommendations from the Committee on the Future Economy (CFE), which are expected at the end of this year.
“We can expect that many of the CFE’s recommendations will require (and receive) funding support through the 2017 and later Budgets,” added Mr Ho.
Members from the CFE's sub-committee on Future Growth Industries and Markets, comprising representatives from the public and private sector meet on Feb 3. (Photo: MTI)
SINGAPORE’S LONG-TERM BET
In his Budget speech, Mr Heng addressed near-term concerns, urging Singaporeans to “not let pessimism take hold, lest it creates self-fulfilling expectations”. “The Government will continue to monitor the situation, and stands ready to act if conditions warrant,” he added.
But he was less explicit on the long term, particularly with respect to how the long-term increase in spending will be funded. And according to SMU’s Prof Koh, this is because the long-term pay-off will hinge on the success of Budget 2016’s economic transformation plan.
“So if we do the transformation right ... we have a larger pool of better-off middle-class workers. And the tax revenue collected can fund the expenditures without burdening the young as everyone is able to work longer, build better careers, and earn higher salaries, as we are worth the higher salaries for having built, created and sustained value,” said Prof Koh.
“I’ll only be concerned about the (fiscal) sustainability if we fail to achieve that transformation as a community.”
Channel News Asia, Linette Lim, 30 Mar 2016
SINGAPORE’S LONG-TERM BET
In his Budget speech, Mr Heng addressed near-term concerns, urging Singaporeans to “not let pessimism take hold, lest it creates self-fulfilling expectations”. “The Government will continue to monitor the situation, and stands ready to act if conditions warrant,” he added.
But he was less explicit on the long term, particularly with respect to how the long-term increase in spending will be funded. And according to SMU’s Prof Koh, this is because the long-term pay-off will hinge on the success of Budget 2016’s economic transformation plan.
“So if we do the transformation right ... we have a larger pool of better-off middle-class workers. And the tax revenue collected can fund the expenditures without burdening the young as everyone is able to work longer, build better careers, and earn higher salaries, as we are worth the higher salaries for having built, created and sustained value,” said Prof Koh.
“I’ll only be concerned about the (fiscal) sustainability if we fail to achieve that transformation as a community.”
Channel News Asia, Linette Lim, 30 Mar 2016
Adapt & Grow - Policies for Singapore's labour force
For more details on individual polices, go to
http://www.wda.gov.sg/content/wdawebsite/WDARoadMap.html#individual-programmes
http://www.wda.gov.sg/content/wdawebsite/WDARoadMap.html#individual-programmes
Quantitative Easing - How it works
The Impossible Trinity - 60 Second Adventures in Economics
MAS to stop Singapore dollar from rising in surprise easing of monetary policy
SINGAPORE: The Monetary Authority of Singapore (MAS) said on Thursday (Apr 14) that it will ease its monetary policy by not allowing the Singapore dollar to appreciate.
The move came as a surprise as most analysts had expected the central bank to maintain its policy of allowing a "modest, gradual appreciation" of the Singapore dollar.
"This is not a policy to depreciate the domestic currency, and only removes the modest and gradual appreciation path of the Singapore dollar nominal effective exchange rate (S$NEER) policy band that was in place," MAS said in its half-yearly Monetary Policy Statement.
“The width of the policy band and the level at which it is centred will be unchanged,” it added.
The central bank's announcement sent the Singapore dollar tumbling 0.9 per cent to S$1.3626 against the US dollar as of 8.35am, the biggest fall since November.
MAS manages monetary policy by letting the Singapore dollar rise or fall against an undisclosed basket of currencies of its main trading partners.
Singapore's economy expanded by 1.8 per cent in the first quarter of this year, but growth was flat on a quarter-on-quarter basis in contrast to the 6.2 per cent growth in the previous quarter, according to advance estimates released by the Ministry of Trade and Industry on Thursday.
“The Singapore economy is projected to expand at a more modest pace in 2016 than envisaged in the October policy review. MAS Core Inflation should also pick up more gradually over the course of 2016 than previously anticipated, and is now likely to fall below 2 per cent on average over the medium term,” MAS said.
The MAS last shifted its currency policy to a neutral policy stance of "zero per cent appreciation" in October 2008 during the global financial crisis. It lowered the rate of appreciation of the policy band twice last year, in January and October.
“The actual outcome of S$NEER movements over the six months since October 2015 has in fact been a 'zero per cent appreciation' compared to the preceding six-month period. The cumulative effects of past S$NEER movements and the new policy path will continue to ensure price stability over the medium term,” it said.
"RIGHT POLICY MOVE": ANALYST
A Credit Suisse analyst said the decision was the right move, given the weakening outlook for growth prospects in Singapore.
“We had been arguing that the central bank could have eased more during the last meeting in October, bringing the slope to zero per cent. Instead, it seems that MAS took a more gradual approach, delaying half of the easing then, to add another half now,” said Mr Michael Wan, an analyst for Asia Ex-Japan Economics at Credit Suisse.
Looking forward, front-end interest rates such as the Singapore interbank offered rate (SIBOR), which is used to price home loans, are likely to rise while the Singapore dollar is expected to weaken further, he said.
“However, the extent of the Singapore dollar’s underperformance will also be dependent on Singapore and global risk sentiment, and whether dollar weakness is sustained from here,” he added.
DBS’ senior currency strategist Philip Wee said the outlook for the Singapore dollar against the US dollar will still be dictated by the greenback’s direction against its trade-weighted basket of currencies.
“Looking ahead, we will probably need to pay more attention to the Fed,” he said, adding that two Federal Reserve presidents – John Williams and Jeffrey Lacker – have suggested that the market may be too “dovish” in their expectations for an interest hike.
The move came as a surprise as most analysts had expected the central bank to maintain its policy of allowing a "modest, gradual appreciation" of the Singapore dollar.
"This is not a policy to depreciate the domestic currency, and only removes the modest and gradual appreciation path of the Singapore dollar nominal effective exchange rate (S$NEER) policy band that was in place," MAS said in its half-yearly Monetary Policy Statement.
“The width of the policy band and the level at which it is centred will be unchanged,” it added.
The central bank's announcement sent the Singapore dollar tumbling 0.9 per cent to S$1.3626 against the US dollar as of 8.35am, the biggest fall since November.
MAS manages monetary policy by letting the Singapore dollar rise or fall against an undisclosed basket of currencies of its main trading partners.
Singapore's economy expanded by 1.8 per cent in the first quarter of this year, but growth was flat on a quarter-on-quarter basis in contrast to the 6.2 per cent growth in the previous quarter, according to advance estimates released by the Ministry of Trade and Industry on Thursday.
“The Singapore economy is projected to expand at a more modest pace in 2016 than envisaged in the October policy review. MAS Core Inflation should also pick up more gradually over the course of 2016 than previously anticipated, and is now likely to fall below 2 per cent on average over the medium term,” MAS said.
The MAS last shifted its currency policy to a neutral policy stance of "zero per cent appreciation" in October 2008 during the global financial crisis. It lowered the rate of appreciation of the policy band twice last year, in January and October.
“The actual outcome of S$NEER movements over the six months since October 2015 has in fact been a 'zero per cent appreciation' compared to the preceding six-month period. The cumulative effects of past S$NEER movements and the new policy path will continue to ensure price stability over the medium term,” it said.
"RIGHT POLICY MOVE": ANALYST
A Credit Suisse analyst said the decision was the right move, given the weakening outlook for growth prospects in Singapore.
“We had been arguing that the central bank could have eased more during the last meeting in October, bringing the slope to zero per cent. Instead, it seems that MAS took a more gradual approach, delaying half of the easing then, to add another half now,” said Mr Michael Wan, an analyst for Asia Ex-Japan Economics at Credit Suisse.
Looking forward, front-end interest rates such as the Singapore interbank offered rate (SIBOR), which is used to price home loans, are likely to rise while the Singapore dollar is expected to weaken further, he said.
“However, the extent of the Singapore dollar’s underperformance will also be dependent on Singapore and global risk sentiment, and whether dollar weakness is sustained from here,” he added.
DBS’ senior currency strategist Philip Wee said the outlook for the Singapore dollar against the US dollar will still be dictated by the greenback’s direction against its trade-weighted basket of currencies.
“Looking ahead, we will probably need to pay more attention to the Fed,” he said, adding that two Federal Reserve presidents – John Williams and Jeffrey Lacker – have suggested that the market may be too “dovish” in their expectations for an interest hike.
Macroeconomic Policies: Singapore 2016
MAS set the rate of appreciation of the S$ to zero percent in April 2016
Fiscal Policy: The FY2016 Budget built on the momentum of previous Budgets to sustain restructuring and foster a more equitable society
- The Singapore economy is expected to grow at a modest pace in 2016. Prospects for global economic growth have dimmed.
- The modest pace of expansion in the G3 economies and the slowdown in China’s growth will continue to exert a drag on the external-oriented sectors of the Singapore economy.
- MAS Core Inflation will pick up only gradually, and average slightly below 2% over the medium term. Reflecting the diminishing drag from oil prices, as well as from budgetary and other one-off measures, core inflation is expected to pick up gradually over the course of this year. However, the pace of increase will be milder than anticipated in October 2015.Apart from a weaker external price outlook, wage growth is expected to moderate in view of the softening labour market, even as the subdued economic outlook will weigh on economic sentiment and restrain the extent to which cost increases are passed on to consumer prices. MAS Core Inflation for 2016 is likely to be in the lower half of the 0.5–1.5% forecast range, barring a sharp rise in global oil prices. Reflecting the continued drag from car prices and housing rentals, CPI-All Items inflation is projected to remain negative throughout 2016 and average −1.0−0% for the whole year. Beyond 2016, the economy is unlikely to see an acceleration of price increases arising from aggregate demand-side pressures. MAS Core Inflation will therefore remain subdued and average slightly below 2% over the medium term. Accordingly, MAS reduced the rate of appreciation of the S$ to 0% per annum in April 2016.
- This policy stance was assessed to be appropriate in view of the downshift in the near- and medium-term outlook for MAS Core Inflation. Together with the gradual adjustments in the monetary policy stance undertaken in January and October 2015, the April 2016 policy move will keep the level of output close to the economy’s potential and provide a partial offset to disinflationary pressures, thereby ensuring price stability over the medium term.
Fiscal Policy: The FY2016 Budget built on the momentum of previous Budgets to sustain restructuring and foster a more equitable society
- The FY2015 Budget outcome was a smaller deficit of $4.9 billion (1.2% of GDP), compared to the $6.7 billion shortfall projected earlier. This was mainly due to lower-than-expected special transfers under the Productivity and Innovation Credit and Wage Credit Schemes.
- Budget 2016 built on and expanded the themes of economic restructuring and fostering a caring and resilient society that had been established in earlier Budgets.
- First, it shifted the focus of restructuring from economy-wide initiatives to micro-level measures.
- To this end, Budget 2016 launched the $4.5 billion Industry Transformation Programme (ITP) to help firms and industries build up capabilities to leverage on new growth opportunities. The ITP provided measures to encourage firms and industries to adopt labour-saving techniques and increase automation. This included the development and deployment of robots in key labour-intensive sectors such as healthcare and construction. To encourage firms to expand and internationalise their operations, the ITP also provided tax incentives for mergers and acquisitions and the development of new markets abroad. The ITP also introduced several schemes to facilitate business development, strengthen industry research and development, and boost entrepreneurial activities.
- Second, Budget 2016 expanded its scope to support workers at risk of being displaced by economic restructuring. While previous Budgets had emphasised the importance of upskilling and lifelong learning, Budget 2016 launched a number of complementary schemes to mitigate the risks of prolonged unemployment that could arise from an extended period of restructuring.
- The “Adapt and Grow” scheme will help workers, especially Professionals, Managers, Executives and Technicians (PMETs), to re-skill and undertake mid-career professional programmes. This was complemented by expanded wage support schemes to encourage firms to hire PMETs who had been made redundant
- Third the Budget implemented programmes to support the economically vulnerable and enhance social mobility. Previous Budgets had established a firm base of support for the economically vulnerable through key programmes such as Workfare, GST Vouchers, and the Pioneer Generation Package. Budget 2016 followed up with the details of the implementation of the Silver Support Scheme, which had been introduced in 2015.
- Under this scheme, Singaporeans aged 65 and above who are at the bottom 20–30% of the income distribution will receive cash payments of up to $750 per quarter.
- At the same time, the Budget developed new measures to enhance intergenerational social mobility through the KidSTART and Fresh Start Housing Scheme. These programmes would provide assistance to children from disadvantaged families and give low-income families living in rental flats a second chance to own their own homes, respectively.
- The Budget also provided near-term relief measures targeted at vulnerable businesses and households. Budget 2016 acknowledged that the confluence of an external slowdown and domestic restructuring have presented challenges to businesses and households. As such, the Monetary Authority of Singapore 18 Economic Policy Group Budget introduced a suite of measures aimed at relieving the cash flows of firms, especially small and medium-sized enterprises (SMEs), and households.
- For businesses, the corporate income tax rebate was raised from 30% of tax payable to 50% for Years of Assessment 2016 and 2017, while the scheduled hike in the foreign worker levy for the Marine and Process sectors was deferred for another year in view of the global cyclical challenges facing the oil and gas sectors. The Budget also introduced the SME Working Capital Loan to ensure that viable SMEs would continue to have access to funding.
- For households, Budget 2016 provided S&CC rebates and one-off GST Voucher special payments targeted at lower-income households. For FY2016, the government has projected an overall budget surplus of $3.4 billion (0.8% of GDP). This includes special transfers, top-ups to trust and endowment funds, and the contribution from net investment returns. The basic balance, which includes special transfers only (excluding top-ups to endowment and trust funds), is projected to record a deficit of $7.7 billion (1.9% of GDP).
- First, it shifted the focus of restructuring from economy-wide initiatives to micro-level measures.
Economics Trip 2016
On 30th May 2016, 34 NYJCians embarked on an economics trip to China. The first 3 days of the trip were spent in Suzhou while the remaining days were spent in Shanghai. Everyone was definitely thrilled and excited about the 7 days they would be spending in China.
The trip started off with a visit to Ping Jiang Lu in Suzhou as the students headed there for their first meal. Ping Jiang Lu was a unique place with many beautiful buildings that reminded us of the rich cultural history of China. The students had a great meal together and spent some time to explore the various shops and bought souvenirs.
The second day soon arrived and the students set off for their first school visit to Suzhou No. 6 High School in the morning. The school warmly welcomed the students and kicked start the visit with a detailed introduction of the school’s curriculum. Following the introduction, the students were given the chance to attend either language, economics or music lesson. The students definitely had an eye-opening experience attending the lessons, especially the fact that all lessons were conducted in Chinese! The second day continued with visits to the Suzhou Museum and Yi Pu Classical Garden. Both places allowed the students to better understand Suzhou, in terms of their history and what they are known for. The students had a great time exploring the places and of course taking pictures for keepsake!
The second day soon arrived and the students set off for their first school visit to Suzhou No. 6 High School in the morning. The school warmly welcomed the students and kicked start the visit with a detailed introduction of the school’s curriculum. Following the introduction, the students were given the chance to attend either language, economics or music lesson. The students definitely had an eye-opening experience attending the lessons, especially the fact that all lessons were conducted in Chinese! The second day continued with visits to the Suzhou Museum and Yi Pu Classical Garden. Both places allowed the students to better understand Suzhou, in terms of their history and what they are known for. The students had a great time exploring the places and of course taking pictures for keepsake!
The third day soon arrived and the students started off the day with a trip to the Suzhou silk factory. At the factory, the students learned about how silk is being produced and was able to witness each process with their own eyes.
Following the silk factory, the students made a trip down to Suzhou Industrial Park. At Suzhou Industrial Park, it was very different from the previous places the students had visited as they have many high rise buildings and housing with close resemblance to the ones in Singapore. The students explored some of the shopping areas and then headed off for a short tour at the Suzhou Industrial Park exhibition center.
As dinner time approached, the students then headed off the Guan Qian Jie for dinner. The groups were given some time to pick their own place to have dinner together as a group, it was indeed a great bonding time for the groups. With that, the three days in Suzhou came to an end.
As dinner time approached, the students then headed off the Guan Qian Jie for dinner. The groups were given some time to pick their own place to have dinner together as a group, it was indeed a great bonding time for the groups. With that, the three days in Suzhou came to an end.
The students embarked on a 2 hours bus journey to Shanghai to kick start the fourth day. The students then had their first meal in Shanghai in a shopping mall owned by CaptiaLand called Raffles City. The mall had many international brands that are often seen in Singapore and was definitely very different from what they have experienced in Suzhou. The students then had a walk through the busy streets of Shanghai and was greeted by the amazing view of Shanghai’s architectures at the Bund. The students had a great time at the Bund and took many pictures with the stunning view of Shanghai.
Next up, it was the student’s first company visit to Wagas, a fast growing F&B group . The speaker definitely inspired the students with her story of how she first started Wagas and slowly expanded her business. Her business is now very successful and is still expanding into various parts of China. Her passion for her business and her never giving up spirit definitely had a great impact on the students. After her sharing, the students had a great meal at her café!
On the fifth day, the students made their second school visit to Shanghai Financial University. At the university, the students were introduced the school’s education system and many of us were shocked at how demanding their education system was. The students also had the opportunity to attend a lesson with the university students.
The fifth day continued with a company visit to General Motors, one of the biggest car manufacturers in the world. The speaker was a Singaporean and inspired us with his career story. He shared some important advice to the students, such as to always remain hungry for knowledge, respectful, passionate about what we do and also have adaptability. Although not all students may not consider a career path like his, the advice he gave definitely applied to our lives, not only for now but also the future.
The sixth day was definitely a great and fun experience for all as the groups participated in a Scavenger’s hunt. The students in their groups were all given a map of Shanghai and they had to navigate themselves around the city using the metro and complete the various tasks given. Some of the places we visited included 佳家湯包 where the students got to try the handmade and fresh Xiao Long Bao. They also visted Lilian Bakery and tried the savoury egg tarts. The groups definitely spent great quality time together through the Scavenger’s hunt. The day then ended with some shopping for souvenirs to be brought back to Singapore at Tian Zi Fang
Delicious Xiao Long Bao!!!
The last day soon arrived. It was the day where groups presented their business plans. The groups were told to come up with business ideas that would be well suited for the Chinese market. The presentations were all remarkable and showed the amount of effort the students put in in just a short period of a few days.
The last day soon arrived. It was the day where groups presented their business plans. The groups were told to come up with business ideas that would be well suited for the Chinese market. The presentations were all remarkable and showed the amount of effort the students put in in just a short period of a few days.
After the business presentations, it was time to head to the airport and take a flight back to Singapore. It was a short trip, but nonetheless a fulfilling and fun trip for the students!
Written by:
Celia Peck 1506
Written by:
Celia Peck 1506