By Goh Chin Lian, Senior Political Correspondent

THE productivity of workers in Singapore is declining and labour chief Lim Swee Say has a suggestion on how companies can help turn it around.

It is by doing more to develop new markets for their products.

He made the call to companies yesterday in response to feedback from many of them that measures like the Jobs Credit wage subsidy scheme are to be blamed.

Such government aid has resulted in these companies holding on to more workers than they need.

They had noted that when 10 workers are retained to do the job of eight or nine workers, short-term productivity suffers.

Mr Lim, however, felt that the Government was doing the right thing by introducing help measures to save jobs.

To get around the short-term impact on labour productivity, which is a measure of the output per worker, he urged companies to 'find ways to prepare these 10 workers, so that by the time the upturn comes, (they) can produce the output of 11 to 12 workers'.

Among the things companies can do to prepare the workers are to develop new technology and design innovative products and services, he said.

Also, they could find new markets and generate more revenue from existing markets, he suggested.

Mr Lim, secretary-general of the National Trades Union Congress, gave these ideas at NTUC's first National Day observance ceremony at its headquarters in One Marina Boulevard.

His comments come amid official concern with Singapore's labour productivity, which has been falling since late 2007.

It has dropped by 15.4 per cent in the first three months of this year compared to the same period last year.

Workers too can do their part and Mr Lim, who is also Minister in the Prime Minister's Office, reminded them yet again to improve their skills and be more adaptable than those in other countries.

One company focusing on preparing its workers to be productive in the upturn - by building up its business during this downturn - is food manufacturer Prima Taste, a subsidiary of Prima Group.

It is looking for overseas distributors for its ready-to-cook pastes and franchisees for its restaurants, in places such as Russia and North America.

The company also plans to move its research and development facility from its Keppel Road office into a bigger factory in Senoko next year, said Prima Group's marketing manager Lim Wee Ling.

The Singapore Chinese Chamber of Commerce and Industry, in a statement, agreed with Mr Lim, saying that cutting costs to save jobs was by no means a long-term solution.

Like Mr Lim, it also agrees that workers must be able to compete with workers elsewhere with the help of technology and innovation.

The chamber's spokesman said it will hold an infocomm conference this month to showcase such knowledge to local enterprises.

Nanyang Technological University economist Randolph Tan felt the focus on productivity was overdue.

'In the long term, we are competing against other exporters. If we aren't competitive, we will remain in the doldrums even after the downturn,' he said.

This article was first published in The Straits Times.