For the first time in at least 10 years, Singapore’s labour productivity declined in 2019. According to economists, the country’s restructuring drive and productivity yet needs to be seen if they remain on track.

Beginning in 2010, the first negative reading for real value-added per actual hour worked was recorded as it dropped by 1.5 per cent.

If measured as real value-added per worker, then the figure declined by 0.8 per cent. It was during the global financial crisis of 2009 that the last time this reading was negative.

According to the Ministry of Manpower (MOM), the drop was also reflected in the strong employment alongside the slowdown in economic growth.

The economic growth in 2019 was the lowest since 2009. On Thursday (12 March), MOM released the labour productivity figures in its Statement on Labour Market Developments 2019.

Although there was improvement in the construction sector in 2019, the productivity drop in manufacturing and services sectors have overshadowed that improvement.

The overall decline was possibly caused by cyclical sources because Singapore is very much an open economy, economists stated.

With the current labour market right, companies are not looking to hire and fire frequently, according to Selena Ling, Chief Economist at OCBC Bank.

She added that the reason for productivity swings from year-to-year would be economic growth, while structural issues could also be causing further declines in productivity.

Chua Hak Bin, Senior Economist at Maybank Kim Eng, opined that in spite of the newest data, “we cannot conclude that the Government’s productivity drive has been successful or a failure over the past decade”.

Irvin Seah, Senior Economist at DBS Bank, argued, “Median income growth is a better indicator of whether we are making progress in restructuring, since at the end of the day that’s the target – having income growth for Singaporeans.”

Notify of
Inline Feedbacks
View all comments
You May Also Like

SSG takes action against over 4,400 individuals for false SkillsFuture Credit claims, totalling $2.2 million

SkillsFuture Singapore (SSG) announced that it has taken enforcement action against over…

MOF: Govt did not say it will not raise taxes (Yes, they did)

The Ministry of Finance issued a rebuttal on its website against accusations that…

面对营业困难 摩拜将撤出狮城

又有共享脚踏车业者将撤出新加坡市场。 陆路交通局证实,共享脚踏车业者摩拜(Mobike)日前已经提出退场申请,要求归还在新加坡的共享脚踏车执照,并于昨日(3月11日)归还营业执照。 陆交局表示,目前正在评估摩拜的申请,并且将和摩拜合作,为减少对消费人的冲击而进行全面探讨,其中包括由摩拜所建议的,将现有的资产或运作转让给现有的执照持有人等。 在现有的停车处法令(Parking Places Act)下,归还执照必须获得由陆交局发出的书面同意。 陆交局表示,摩拜退出新加坡市场的申请一旦批准,摩拜必须按照规定,将停放在公共场所的脚踏车移走,并且把抵押金和预付金归还给消费者。 第三家业者退出市场 一旦申请通过,摩拜将是第三家退出新加坡共享脚踏车市场,面对营业困难的业者。首个退出市场的业者为Obike,第二家则是ofo,已经于今年二月被勒令暂停营业。 Ofo受到陆交局的限定,最迟必须在明天符合所有的营运条件,否则营业执照将被撤销。

Challenge of Attorney General’s discretion dismissed in capital offence case

~by: Ashok N~ The case of Ramalingam Ravinthran v Attorney-General (A-G) drew…