Critics of the proposed motion express caution regarding any significant departure from the established economic model that has underpinned Singapore’s success for decades. They argue that multinational corporations remain the primary drivers of high-value jobs, technology transfer, and global connectivity. Skeptics warn that prioritizing domestic demand and local companies at the expense of attracting foreign investment could risk Singapore’s competitive edge in a highly integrated global market. For a small city-state with no natural resources, maintaining an open and attractive environment for global capital is often seen as a non-negotiable necessity.
There is also concern that the WP's focus on "local-first" policies might inadvertently lead to protectionism, which could hinder the efficiency and global competitiveness of Singaporean firms. Economists often point out that the success of local companies is frequently tied to their ability to integrate into global supply chains managed by these very multinational corporations. By potentially discouraging foreign presence or creating a more restrictive business environment, the country could face long-term stagnation rather than the intended growth.
Furthermore, some observers question whether the government’s existing Economic Strategy Review is as limited as the opposition suggests. They argue that the government is already implementing targeted support for local enterprises and digital transformation, and that a parliamentary motion might be more of a political statement than a practical economic solution. The risk, according to these critics, is that the debate could create unrealistic expectations among the public about the speed and ease with which the economic structure can be transformed without causing significant disruption to the labor market or fiscal stability.