Singapore productivity rates in 2012 not very positive

Singapore's productivity rates in 2012 have not been very positive, says Acting Manpower Minister Tan Chuan Jin.

Employment has grown much faster than GDP over the same period.

Replying to a question in Parliament, he explained that Singapore's target of 2 to 3 per cent productivity growth per annum is a stretched target, as most developed economies achieve an average of 1 to 2 per cent productivity growth per annum.

But if Singapore is able to hit the upper end of this range over the long term, the country will be in a good position to achieve higher wages for all Singaporeans and remain competitive at the same time.

Hence, there is a need to press on with efforts to restructure the economy.

Mr Tan says companies need to reduce their reliance on manpower, and workers need to continue upgrading themselves so that they can take on the higher value-added jobs created.

Singapore must also persist in the gradual tightening of the foreign worker policy.

Via – CNA