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Nov 29, 2009
Cheaper Faster Better
By Fiona Chan
Singapore's economy boomed correspondingly with average growth of 8.2 per cent per year between 2004 and 2007. -- PHOTO: BT
THE declining productivity of Singapore's workers is likely to be a key issue tackled by the Economic Strategies Committee (ESC) when it releases its recommendations in January.
This will be a problem the government-led panel - chaired by Finance Minister Tharman Shanmugaratnam and set up to find new ways for Singapore to grow over the medium term - should address, say economists.
For any economy, labour is a key ingredient in creating output and growth. To raise output through labour, an economy can either keep increasing the number of workers forever - which is not viable in the long term - or, preferably, raise the amount of output from each worker.
Over the last few years, Singapore's rapid growth has been mostly driven by a massive increase in the workforce, said Citigroup economist Kit Wei Zheng. But it is clear that growth powered by importing endless pools of foreign labour is simply not sustainable, he said.
Between 2006 and 2008, the number of workers in Singapore jumped an average 6.5 per cent a year, largely due to liberal immigration policies, said Mr Kit. By 2008, foreigners accounted for a third of the 3 million-strong labour force, up from only a quarter in 2004.
Singapore's economy boomed correspondingly with average growth of 8.2 per cent per year between 2004 and 2007.
Nov 29, 2009
Cheaper Faster Better
By Fiona Chan
Singapore's economy boomed correspondingly with average growth of 8.2 per cent per year between 2004 and 2007. -- PHOTO: BT
THE declining productivity of Singapore's workers is likely to be a key issue tackled by the Economic Strategies Committee (ESC) when it releases its recommendations in January.
This will be a problem the government-led panel - chaired by Finance Minister Tharman Shanmugaratnam and set up to find new ways for Singapore to grow over the medium term - should address, say economists.
For any economy, labour is a key ingredient in creating output and growth. To raise output through labour, an economy can either keep increasing the number of workers forever - which is not viable in the long term - or, preferably, raise the amount of output from each worker.
Over the last few years, Singapore's rapid growth has been mostly driven by a massive increase in the workforce, said Citigroup economist Kit Wei Zheng. But it is clear that growth powered by importing endless pools of foreign labour is simply not sustainable, he said.
Between 2006 and 2008, the number of workers in Singapore jumped an average 6.5 per cent a year, largely due to liberal immigration policies, said Mr Kit. By 2008, foreigners accounted for a third of the 3 million-strong labour force, up from only a quarter in 2004.
Singapore's economy boomed correspondingly with average growth of 8.2 per cent per year between 2004 and 2007.
