Thursday, 24 March 2016

Singapore has run out of low-hanging fruits

The economic success of modern Singapore is largely built on cheap land, immigrant labour, rapid adoption of powerful technologies and highly-educated/skilled workforce. However, during the past 30 years, these low-hanging fruits have started to disappear. Now, we are plagued with dangerously-low birth rate, an aging & shrinking workforce, escalating business costs and a lack of economic growth drivers.

Fortunately, the Budget 2016 did address some of these problems by offering short and medium-term solutions. However, in terms of a more deep-rooted, comprehensive and long-term framework, we still need to wait for the newly-formed 'Committee on Future Economy' (CFE) to release their work by the end of 2016. The areas they will be working on are:
- corporate capabilities and innovation
- future growth industries and markets
- connectivity
- urban development and infrastructure
- jobs and skills

4 comments:

  1. IMO maintaining the FW levy increase for services and construction makes no sense since thsee are jobs that truly no Singaporeans would do. Implementing a strict local to foreigner ratio for PMET postions would be a much better way to stimulate the economy. We, or rather the government, must realise that trickle down economics has never worked.

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    Replies
    1. Hi unluckid,

      Thanks for the insightful comments.

      I agree. Singapore's domestic economy is simply too small for positive 'trickle-down' effects to be significant.

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  2. We both know where that term is most frequently used LOL

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    Replies
    1. Hi Ken,

      Indeed we do.... *wink wink* :P

      Delete