S’pore on track to hit productivity target despite challenges
TODAY file photo
SINGAPORE — The Republic is on track to meet the target of 2 to 3 per cent annual productivity growth set for 2009 to 2019 by the Economic Strategies Committee, but several headwinds continue to pose challenges to the economy, Minister for Trade and Industry Lim Hng Kiang said today (Nov 27).
“First, global economic conditions remain sluggish, with growth in 2015 likely to be slower than in 2014. While we expect global growth to improve somewhat, the continued slowdown in China, the services-driven growth in the United States, as well as the trends of onshoring activities back into China and the US means that we can expect external demand to continue to be weak,” he said.
“Second, we are also seeing rising competition — both from regional and global players. This is even as technology is threatening to disrupt traditional business models, requiring businesses to reinvent themselves to stay relevant.
“Finally, Singapore continues to face a tight labour market and land constraints.”
Despite the challenges, Singapore must continue to grow the economy, and help companies seize opportunities so as to create good jobs for Singaporeans, Mr Lim said. “Raising productivity is therefore critical, as it allows us to maintain our competitive edge despite our constraints,” he added.
Mr Lim raised the points at the Singapore Business Federation’s (SBF) Singapore Productivity Awards dinner, where eight local enterprises from six sectors — food & beverage, logistics, hotel, manufacturing, infocomms and retail — were recognised for their productivity excellence. Two new sectors — manufacturing and infocomms — were added, due to their high contributions to Singapore’s gross domestic product, said Mr Victor Tay, SBF’s chief operating officer.
The companies winning the productivity awards included Jumbo Group, Singapore Marriott Tang Plaza Hotel, M1, CWT, Poh Tiong Choon Logistics, Mencast Holdings, YHS (Singapore) and Charles & Keith (Singapore).
