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More job creation despite lower inbound investments

While inbound investments are expected to plunge this year in the face of global headwinds, the EDB said these investments could create more jobs in Singapore in the coming years.

While inbound investments are expected to plunge this year in the face of global headwinds, the EDB said these investments could create more jobs in Singapore in the coming years.

In its annual review yesterday, EDB said the S$8 to S$10 billion of fixed-asset investments that Singapore could secure this year would yield 20,000 to 22,000 jobs when implemented. This is sharply higher than the 16,800 jobs expected to be created from investments it scored last year.

“This reflects the collection of projects that we anticipate to come in, that will be committed in 2016. The jobs will be created as the projects get implemented, so the jobs will come in 2017, 2018. So year-to-year fluctuations are quite common,” said EDB chairman Beh Swan Gin.

While it is hard to nail down the nature of these jobs and whether there will be enough Singaporeans to fill them, economists TODAY spoke to said that skilled job creation is a plus for the economy.

“Despite the slower growth environment, one reason why Singapore continues to be able to enjoy full employment is that there are investments coming in and we do see job creation. Singapore is not the cheapest for manufacturing, but we still get investments and the kind of jobs created are more and more specialised,” said CIMB Private Banking economist Song Seng Wun.

From 2012 to 2015, median wages in the manufacturing sector grew at a compounded annual rate of 5.5 per cent, higher than the 4.2 per cent growth seen in median wages in the overall economy, said EDB managing director Yeoh Keat Chuan.

“Manufacturing provides good jobs for Singaporeans,” said Mr Yeoh, adding that as the manufacturing sector continues to evolve with the adoption of technology, new jobs will emerge and there is a need to prepare the workforce for such opportunities. LEE YEN NEE

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