Productivity in S'pore will pick up, says report

Productivity in S'pore will pick up, says report

FALLING productivity has left Singaporean workers trailing their counterparts in many countries but the decline is only temporary, according to a report out yesterday.

It contends that Singapore's slip in output per worker is due in part to the world economic slowdown and structural changes under way here.

Mr Charles Davis, head of macroeconomics at the Centre for Economics and Business Research (Cebr), said the falling labour productivity is linked to a cyclically weaker manufacturing sector, which has been hit by the weak global economy and slower growth.

"Productivity numbers at face value tend to be quite volatile and driven by what's happening in the global economic cycle," said Mr Davis, who helped compile the report.

"Singapore is going through a stage in which the economy is maturing and we are seeing structural change. The economy is moving towards higher value-added service sectors, and productivity should improve again as it moves towards these sectors."

He also noted that Singapore's position as an international financial centre leaves it well placed to take advantage of growth in the services sector.

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