Singapore must pull out all the stops to up productivity

The 2017 IMD World Competitiveness ranking, in which Singapore overtook the United States, is worth celebrating, except that our productivity gains have not matched wage growth (Singapore ranked most ‘digitally competitive’ in the world; May 31).

Disruptions caused by technological and lifestyle changes, feeding into the gig economy here, are another factor that is bound to adjust our economy as we know it.

The world is so unpredictable, especially with Mr Donald Trump at the helm of the US, and others countering him on matters concerning protectionism and defence, the geopolitical and socio-economic changes will add to the Government’s headaches.

Making progress in productivity is tough if there is a mismatch between jobs created and workers needed.

Skills training must keep abreast of technological changes, workers must be prepared psychologically for the hard slog to make adjustments, some of which even employers have difficulty making.

Another factor that will weigh on productivity is whether workers who undergo training will stay the course.

It is not easy to stay focused when the gig economy beckons them to become freelancers, to go for a job with flexible working hours and more work-life balance and to be their own boss.

On another front, there are companies struggling with decreasing profits, and small and medium enterprises forced to raise wages to fulfil the requirements of the Progressive Wage Model so that they can renew their licences or get contracts.

This will put a strain on them. Despite that, these companies must endeavour to increase productivity in all possible ways and cut the dead wood to save costs.

Workers with better education and skills must be recruited, as that will lead to a win-win situation for employers and employees. Growing by taking in more foreign workers is passe, so locals must be groomed for higher productivity.

It is tough for both bosses and workers, but we must bite the bullet and improve productivity, or else Singapore’s competitiveness will be jeopardised.

All the unpredictable, disruptive problems mean that our future is uncertain too. We may try to solve one thing, but create another problem.

It is like the balloon effect: Squeezing a balloon in one place causes another part to inflate, which means a new problem emerges. We need the collective effort of all to get the balloon in shape.