Keynote Address by Senior Minister of State for Defence, Dr Mohamad Maliki Bin Osman, at the Singapore International Chamber of Commerce Distinguished Speaker Series held at the Sands Expo and Convention Centre, Marina Bay Sands

Very good afternoon, ladies and gentlemen. Before I begin, I would like to express my deep gratitude to Mr Victor Mills for the invitation and, of course, congratulate the Singapore International Chamber of Commerce (SICC) for its 180th anniversary. Didn't realise it has been that long, far supersedes any of our ages. SICC has witnessed Singapore's growth from a young third-world nation to the vibrant business hub it is today, and has contributed to this growth. With its intimate understanding of the needs and concerns of large and small businesses alike, and the developments in international trade, SICC is an effective bridge between government and businesses. I am honoured to be here today to share my thoughts on how the different segments of our society can continue to come together to ensure a stable and conducive environment for organisations doing businesses in Singapore, especially as the world grapples with increasingly complex and volatile security situations.

Importance of security and defence to economic prosperity

None will dispute that a stable and secure environment is the bedrock upon which the economy thrives and prospers. Without it, it will be difficult for us to sustain a business, or even our way of life. This has been evident in the events we have witnessed over the last few years.

Let me cite some examples. In 2013, a coup d'état was launched against Egyptian President Morsi. Following that, civil conflicts erupted and a state of emergency was called. The security situation was delicate and volatile. That year, General Motors closed their Cairo office and halted production operations, and so did Shell.

The Middle East and North African economies also suffered greatly in the wake of long-drawn regional and domestic conflicts. As violence picked up in 2014, Libya lost 24% of its GDP. By 2015, four years into the conflict, Syria's GDP took a nosedive and was less than half of what it used to be in 2010. The Yemenis were not spared either - they suffered a 25% loss in income.

A persistent state of fear of instability can also severely impact the economic progress of a nation. In Israel, for example, a nation in constant fear of violence, experts have estimated that the nation's GDP per capita between 1994 and 2003 would have been 8.6% higher had there been no fear of instability.

In recent years, terror attacks have increased in pace across the world. Such security shocks gravely affect economic markets and undermine economic stability. They have the potential to impact a nation's domestic economy, particularly investment and consumer confidence. In Nigeria for example, in 2010, it is estimated that foreign direct investment decreased by $6.1 billion due to terrorism, a decrease of 30% from the previous year. It was also estimated that international traffic on European airlines was 1.6% lower than forecasted in the year following an attack. This translated to a US$2.5 billion loss in airline revenue. Back in 2001 after the 9/11 attacks, the New York Stock Exchange (NYSE) and the Nasdaq closed for four trading days in fear of a market collapse should a massive sell-off be triggered. This was a first since the Great Depression in 1933.

These examples from around the world illustrate the close coupling of security and the economy. As a newly independent nation, Singapore, too, had its share of social unrest. The Hock Lee bus riots and 1964 race riots are just two examples. At that time, we also faced many challenges such as poor education, healthcare and living standards. Our GDP per capita was only $500 then, similar to countries such as Mexico and South Africa. However, our government recognised that building our national defence was a top priority. As the late Mr Lee Kuan Yew said as recently as 2012, "From the day we started, I knew that we needed a strong SAF and I believe that still remains today. Without a strong SAF, there is no economic future, there is no security".

For the past 52 years, a capable SAF has safeguarded Singapore's security and enabled Singapore to thrive. Today, Singapore ranks as the fourth richest country in the world as measured by our GDP per capita. The backbone of the SAF is the National Service system, as you have known, that was established in 1967, amidst many competing demands. Since then for the past 50 years, more than a million Singaporean males have answered the call to serve. These NSmen provide the necessary manpower for Singapore to defend our country, loved ones as well as our way of life.

As we celebrate Singapore's 52nd birthday next month, we must remember that the peace we accept as normal today did not come by chance, but by generations of Singaporeans who came together to contribute to national defence. Our peace is hard-won and must be fiercely protected by one and all.

Security challenges facing Singapore

This is especially so as the security environment is growing ever more complex and challenging. Even as conventional challenges remain pressing, non-conventional and hybrid threats, such as cyberattacks, continue to evolve.

In the Asia Pacific region, tensions in the Korean Peninsula and territorial disputes in the South China Sea are long-term issues that have no quick resolution. Singapore is not directly involved but we will not be immune should there be negative developments.

Closer to home, the security situation in Marawi city on Mindanao island is of great concern and Singapore stands ready to offer help. If the situation in the Southern Philippines is not dealt with, terrorist groups can gain a foothold there and launch attacks in countries around the region. Indeed, ISIS has made clear its intention to establish a caliphate in Southeast Asia. If ISIS-affiliated groups succeed in establishing a foothold in Southeast Asia, Singapore will face a serious and immediate security threat for years to come. Just last month, the Ministry of Home Affairs released their assessment that the threat of a terror attack in Singapore remains at the highest level in recent times, and Singapore remains a key target of the Jihadist ISIS group.

Singapore is also not immune to the violent ideologies espoused by ISIS, which are permeating our information space and influencing the minds of our population. We are facing extremists who are skilled at using social media to target young and vulnerable individuals. In our hyper-connected world, social media allows those with malicious intent to spread radical ideologies or false news designed to sow tensions in our harmonious society. Last December, seven foreign domestic helpers in Singapore were repatriated to their home countries after they were found to have been radicalised through the Internet. Last month, you would have heard, one of our young adults, 22-year-old Syaikhah Izzah, who intended to join ISIS in Syria, was detained for radicalism by online propaganda. Shortly after, two Auxiliary Police Officers were arrested under the Internal Security Act. One was planning to travel to Syria to fight against the Syrian government, the other supported his plan. Fortunately, the authorities intercepted them before things grew out of hand.

We have also seen how quickly false news can go viral online, with potentially disastrous consequences on the target. There had been online posts claiming that NTUC Fairprice's house brand jasmine rice was made from plastic, and that a childcare centre made children sleep on the floor and eat rotten fruit. In our multi-racial, multi-ethnic society, it is imperative to prevent malicious and mischievous false news from weakening our social unity. For businesses, the spread of fake news impacts consumer confidence, which take years to build up.

Extremist propaganda, mistruths and fake news are but one aspect of the threats we face in cyber space. The spate of large-scale cyberattacks around the world in recent times is a clear signal that we need to enhance our defences in this area. So far, we have done well in preventing and containing malicious attacks, but the fight is a long-term one. Be it the government or businesses, any attack to our systems could cause widespread disruption and confusion. Take for example the Wannacry attacks in May this year. Affecting over 150 countries, they were estimated to have infected more than 230,000 computers within a day. Large organisations such as Britain's National Health Service, Germany's Deutsche Bahn and America's FedEx were hit. Hospitals across England had to divert emergency patients as they dealt with the unexpected ransomware.

Protecting Singapore through Total Defence

What do we do then, when the challenges we face are so diverse, unpredictable, and even seemingly unsurmountable? Singapore's response to these various security threats is dependent on a resilient Singaporean populace rallying behind it, ready to play their part. We need to be conscious of external pressures to disrupt our unity and way of life, rally together as one, and remain resilient in the face of threats. This means being strong enough to deal with any crisis as a nation, and being able to bounce back quickly when we are hit. While others will seek to wreak unrest and uncertainty among us, it is our solidarity and constant vigilance that will form the bulwark against those who seek to destabilise our society.

Members of the business community like yourselves, thus have an important role in ensuring that business continues and the economy keeps running. As the increase of disinformation and cyberattacks continues and we brace ourselves for a possible act of terror, consider what you have to do individually or as a business community. You could harden your business operations and infrastructure against cyberattacks, and develop business continuity plans for what to do in the event of a terrorist attack. It may also be useful to educate your employees to deal with fake news targeting your business or investor confidence in Singapore, and equip your staff with the skills to respond to an attack. Raffles Hotel, for example, assembled a crisis response team and trains their frontline staff in Krav Maga to ensure that they can react to dangerous situations. Such efforts contribute to a strong Economic Defence, and will help to ensure that we are not crippled when we are struck. Ultimately, defending Singapore is a shared responsibility.

Importance of NS for military defence

Amidst these community efforts, we can be assured that the SAF will continue to be the strength of the nation. This year, we celebrate 50 years of National Service, as you have heard earlier. NS has forged common space, enhanced nation-building and helped to shape a strong sense of national identity among generations of NSmen of different backgrounds. Today, NS is part of a Singaporean's DNA and a rite of passage for our boys as they grow into men, acquiring valuable life lessons and skills which develop their character and abilities. While we think that Ah Boys to Men is a cliché, it is really a rite of passage.

The next 50 years will pose challenges for the NS system. Demographic changes, coupled with our maturing economy, will make it more difficult for us to sustain an effective military force as compared to before - and I am talking about the low fertility rate as we have known. Yet we remain clear-eyed that a strong and credible defence force is all the more critical now, as we continue to build and restructure our economy.

Importance of community's and employers' support for NS

I am confident that our national servicemen will continue to draw strength from the support of the community. Just as they strive to do their best at work, because your company's success contributes to their own, our NSmen also hope to do their duty as Singaporeans to protect and defend our nation. However, they can only do so with your active support and assurance that their careers will not be impeded because they are away from the office to serve the country. This is important as 42% of NSmen felt that their employers preferred to hire people without NS commitment, as found in a survey conducted by the Lee Kuan Yew School of Public Policy recently.

In supporting your NSman employees, the company benefits too. While serving the nation during their ICTs, or in-camp training periods, our NSmen develop skills which can be useful in the workplace. In a 2016 study, it was found that 85% of employers agreed that NS developed traits in NSmen that were important to the company, such as leadership and teamwork. Mr Cheam Hing Lee, Managing Director of Rhodium Resources, is one such employer. He sees NS training as an opportunity for his staff to hone their leadership skills, and enhance their potential to take on managerial positions in the company. In that regard, NS performance is taken into consideration for the NSmen's career progression and performance appraisal. To allow his staff to fully focus on their NS training, Mr Cheam ensures that their duties at work are covered by a team mate. NSmen also receive rewards from the company for doing well in their Individual Physical Proficiency Test, or IPPT in short. This, to me, is a win-win proposition and I hope more employers will come to realise this.  

By standing behind our NSmen, you give them the peace of mind to perform their military duties. Let me illustrate this point with a nomination for the Friend of NS Award, which is given out to individuals who have supported NSmen in fulfilling his NS duties. This particular nomination came from 3SG(NS) Jason Lee for his wife's superior, Dr Ralph Ostertag, Vice President of Daimler Southeast Asia. Jason explained that by allowing his wife to take time off work to tend to their family's needs while he is out at ICT, Dr Ostertag has in turn made it much easier for him to focus on his in-camp training. So it is not just his employers who are supporting, but also his wife's employer who has supported his effort at performing his duties. So indeed, every bit of contribution counts and every employer's decision to show understanding and support to our servicemen through big or small ways goes a long way towards showing that we play our part for Singapore's defence.

The business community's outstanding efforts in commemorating NS50 are a strong testament of employer support for our NSmen. Over 100 merchants, such as Singapore Airlines and Resorts World Sentosa, are showing their appreciation for NSmen by providing special deals from 30 June to 10 August, just after National Day. On 30 June, you would have heard, public transport providers offered free bus and train rides to our NSmen, employers encouraged their NSman staff to wear their military uniform to work, while several organisations across the island rallied their business partners and community to jointly pledge their support for NS and our NSmen by signing the NS Mark Declaration of Support. I have been told that, as mentioned by Mr Mills earlier, SICC will also be doing so shortly.

ACCORD and its role in enhancing employer support

MINDEF's Advisory Council on Community Relations in Defence (ACCORD), was restructured and organised into three sub-councils, focusing on engaging employers and businesses, education institutions, and the family and community. The restructure reflected a marked shift towards greater and more active involvement of the community on defence and NS-related matters. ACCORD is now into its second term. That key community stakeholders dedicate time, resources and effort to the work of ACCORD reflect their commitment to stand behind our soldiers and support national defence.

The Employer and Business Council, for example, has encouraged greater commitment to NS within the business community by strengthening the partnership and cooperation between the SAF and the business community, and bringing the benefits of NS training into the workplace.

To recognise a wide network of employers for their support towards NS, the Council conceptualised the NS Mark accreditation scheme. It aims to cultivate a workplace culture that is more NS-friendly and conducive for our NSmen to balance their various obligations in terms of work, life and NS duties. SICC, represented by Immediate Past President, Mr Rolf Gerber, was instrumental in the development of the NS Mark.

As business leaders like yourself continue to advocate for greater community support for NS, I am certain we can expect to see more businesses joining the ranks in the coming years.

Conclusion

So let me conclude by saying that, we appreciate and recognise our past and present NSmen this year, we also celebrate the community's support for NS. SICC has long been a strong partner, and we at ACCORD and the SAF are grateful. I am heartened that you will be declaring your commitment towards NS after my address. This is a commendable effort and a compelling display of the international business community's conviction to support NS. As leader of the international businesses in Singapore, SICC has set an outstanding example for the community to model after and I am encouraged by your commitment to strengthening National Service. With you as our partner, I am confident that we will be able to see a safe, prosperous and united Singapore for the next 50 years and beyond.

Thank you.