S’pore productivity decline reflective of slowing economy: Teo Ser Luck

SINGAPORE: Trade and Industry Minister of State Teo Ser Luck said Singapore’s productivity decline is reflective of the slowing economy.

Speaking in Parliament on Monday, Mr Teo said that as business activities slow, companies tend not to adjust their workforce immediately due to the cost of hiring and firing workers.

Mr Teo said the process of redesigning jobs takes time with some industries needing a longer time to change.

He added that it is important to educate and provide guidance to these companies.

Mr Teo said about 7,000 companies have benefited so far from various productivity initiatives, with 86 per cent of them being small and medium enterprises (SMEs).

He said: "We must see beyond the short—term fluctuations, but press on with our productivity drive for the long term. We must continue to boost productivity at all levels.

"We need to restructure our economy to move up the productivity chain; companies need to also review their reliance on manpower; and workers need to upgrade themselves continuously to take on higher value—added jobs."

—CNA/ac