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Singapore’s GDP growth grew by 2.0 per cent in 2016 compared to 1.9 per cent in 2015. Amidst global economic uncertainties, the Ministry of Trade and Industry has forecasted that the economy would grow by 1-3 per cent in 2017.
To chart our next phase of growth, the Committee on the Future Economy has laid out seven strategies and called for collective efforts to achieve GDP growth of 2-3 per cent and productivity growth of 1-2 per cent annually. Productivity growth is crucial as workforce growth will continue to moderate. Workforce growth has declined from over 100,000 annually between 2010 and 2014 to 23,300 in 2015 and 8,600 in 2016. It is expected to grow by between 25,000 and 40,000 annually from now on. According to a SNEF survey, companies reported that they reaped only half the expected productivity gains after one to three years of taking action. They cited the main reasons to be the lack of a culture of excellence and workforce adaptability. It is therefore important that we cultivate a mindset for continual improvement and lifelong learning.
Labour-management cooperation will be key in sustaining productivity gains at the enterprise level. As productivity grew by only 0.5 per cent annually between 2010 and 2016, I urge employers and their unions to work together to transform their relationship into a stronger partnership to facilitate a productivity resurgence. This will require mutual trust, responding quickly to growth opportunities, tackling challenges together and good communication.
SNEF is committed to continue to be “by the side” of employers and the Labour Movement to help strengthen this productivity partnership. Together with our tripartite partners, we will work hard, move forward together and ensure that all businesses and their employees share the fruits of economic growth.
On behalf of our 3,300 SNEF corporate members, I wish all in the workforce a Happy May Day!
