SMU Professor of Economics Hoon Hian Teck, who is also Associate Dean (Faculty, Research) of the School of Economics, believes that a new economic model around small and medium-sized growth firms has to be built. This is because the growth possibilities are very different now that Singapore is in a different economic growth phase from the “catch-up” phase when Singapore relied on multinational companies to bring in technology. The ageing population will also mean slower growth. As the Government prepares its 2017 Budget to steer the economy through a slower growth environment, it is also important to manage the expectations of young people entering the workforce. Singapore’s growth will likely be driven by smaller firms, and Singapore's Budget has to recognise this. To create a more dynamic economy through smaller firms, initiatives can be tried at all levels – from encouraging children to take more risks in school, growing financing for start-ups, to a consistent and serious internationalisation effort. Digitisation is also an area for Singapore businesses to look into. However, Singapore has to figure out how best to mitigate the impact of disruption and provide social insurance. Ultimately, Singapore has to continue experimenting the best way to develop its economy.  Multinational companies should still be welcome, as graduates can learn the best management practices from them. “But we can’t go back to the past, where multinationals came in and brought lower-end jobs. Encouraging small firms to grow and innovate is the only way we can generate growth,” concluded Prof Hoon.