Debated in Parliament on 6 Feb 2024.
Mr Edward Chia Bing Hui asked the Minister for Trade and Industry (a) how does the Ministry assesses the impact of productivity support measures on firm-level productivity improvements; (b) what correlation has been observed between these schemes and wage growth; and (c) how have these measures influenced firm competitiveness in local and international markets.
The Government has a range of measures to support enterprises in boosting their productivity. We assess the productivity impact of these measures at the national level. From 2017 to 2022, national productivity in terms of real value-added per worker grew by 2.0% per annum.
Over the same period, real gross median income for full-time employed residents grew at a commensurate 1.8% per annum. Productivity growth has thus supported real wage growth over the past few years. Over the longer term, however, for real wage growth to be sustainable, it needs to be accompanied by strong productivity growth.
The steady growth in productivity has also contributed to our competitiveness. Over the past five years, Singapore has retained our position as one of the top five most competitive economies in the IMD World Competitiveness Rankings.
It is thus vital for enterprises and workers to press on with efforts to raise productivity, as this will contribute to better wages for workers and enhanced competitiveness for our enterprises. The Government will render its full support throughout this journey.
PAPERCUTS