Singapore's labour productivity expected to rise this year on faster economic growth

Singapore's labour productivity will likely show a slight improvement this year, as the economy strengthens and more companies are implementing measures to boost their productivity, the Ministry of Trade and Industry said. -- ST FILE PHOTO: LAU FOOK
Singapore's labour productivity will likely show a slight improvement this year, as the economy strengthens and more companies are implementing measures to boost their productivity, the Ministry of Trade and Industry said. -- ST FILE PHOTO: LAU FOOK KONG 

Singapore's labour productivity will likely show a slight improvement this year, as the economy strengthens and more companies are implementing measures to boost their productivity, the Ministry of Trade and Industry said.

The MTI on Monday said it expects Singapore's economic expansion to continue improving slightly throughout the rest of the year, and raised its full-year growth forecast to 2.5 to 3.5 per cent, up from the previous projection of 1 to 3 per cent.

Labour productivity declined by 0.3 per cent in the second quarter compared with the same period a year ago, but the pick-up in the economy will help to raise productivity for the year, said MTI Permanent Secretary, Mrs Ow Foong Pheng.

Nonetheless, the Government will also take steps to ensure that companies are continuing to adopt better practices to keep up with the economy's restructuring process, she added,

"Productivity per worker is very much driven by the economic performance so for this year we expect a slight improvement in the productivity figure," she said.

"But it's more important for us to look at what's happening on the ground for each of the different sectors that we work on through the National Productivity Council."

Mrs Ow added that increasing numbers of firms have been signing up for the various productivity schemes offered by the Government, which is a heartening sign.