S'pore workers need to raise productivity, improve capabilities

Senior Minister Goh Chok Tong has said Singapore's workforce needs to raise productivity and improve capabilities to spur economic growth.

Mr Goh said these two issues will be addressed by the Economic Strategies Committee when it releases its report on February 1. He was speaking on the sidelines of a community event on Sunday.

Mr Goh was at his Marine Parade ward, giving out hongbaos to welfare recipients.

Even as the government is trying to help those who are less well-off, Mr Goh said Singaporeans have to be prepared for slower economic growth.

Singapore's economy grew by five per cent on average per year over the last decade. But the growth came mainly from expanding the foreign workforce.

Mr Goh noted that Singapore's productivity increased by only one per cent a year in the same period.

As the government is committed to cut the growth of foreign workforce, Mr Goh said Singapore will need to double its productivity to achieve a three to four per cent growth every year. But he cautioned that this will not be easy.

He said: "This is the trade-off. If you want to grow fast, it means a larger foreign workforce, which I think is not advisable because already we have too huge a presence of a foreign workforce in Singapore and we are not emphasizing productivity."

Mr Goh suggested that Singapore's services industry can look to its European counterparts on how to improve productivity levels.

He said: "If you have been to Europe, you find that we have one person serving many people. Here, we have many people serving one customer.

"When I first went to Brussels, I was very impressed by just one lady ... serving about 10 customers. Her business had just started. She was her own cashier, she was the coffeemaker, she was the cleaner, everything, just one person."

Mr Goh also responded to reporters on the news that more young people are joining the opposition parties.

He said: "If they wish to choose to contest against us - they are decent people with good views - I think it is to be welcomed. Of course, I will be happier they would join us, but let it be.

"We have been interviewing people. But frankly speaking, don't stir up any excitement about election. I think we are still concentrating on economic recovery."

Mr Goh added that the People's Action Party (PAP) has also been going out to attract younger candidates, including more women.