Republic must stay innovative, competitive amid challenging conditions

I refer to the report “Employment growth slows, real income growth falls: MOM” (Jan 26, online).

The macroeconomic and geopolitical situations have been shrouded in uncertainty and complexity since last year.

Take, for example, the United States’ withdrawal from the Trans-Pacific Partnership, US President Donald Trump’s protectionist trade policies and nativism, as well as China’s assertiveness in its South China Sea territorial claims.

These have worsened tensions in the Asia-Pacific as well as global economic growth.

Such factors have also affected the performance of local companies and put foreign investment off indirectly.

The estimated total employment last year increased by merely 16,400, or 0.4 per cent, nearly half the number in 2015. This reflects or attests to a deep connection between the local and world economy., and the influence of the latter.

Hence, I would expect layoffs in certain business sectors in this difficult year — for example in manufacturing, retail, oil and marine services as well as construction.

Singapore must continually explore new business opportunities and strategies, and spare no effort in promoting technological innovation, creativeness and productivity to stay competitive and progressive in this dynamic and challenging environment.