Are you ready for 7 million people on tiny Singapore?
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Anyway, here is the view from the Singapore Business Federation (SBF) on the issue. I know pro-business opinions gains no traction in this forum, so FWIW.
Singapore, Thursday, 31 January 2013 - 1. The Singapore Business Federation acknowledges the importance of the Population White Paper's projections for the medium to long-term growth of Singapore. A shrinking and ageing workforce amidst the backdrop of a stagnant Total Fertility Rate (TRF) will have serious implications for businesses and the economy. It is vital that Singapore achieves consensus and lends support for these important issues.
2.\tDespite total population projected to reach 6.9 million by 2030, Singapore businesses will be impacted by slower workforce growth from 2013 to 2020 at only half of the average growth rate compared to the last three decades. From 2020 to 2030, workforce growth is projected to decrease even further. This will constrain businesses and limit growth. It will have devastating consequences for many companies.
3.\tAs the number of Singaporeans in Professional, Managerial, Executive and Technical (PMET) jobs increase, there will be a shortage of local non-PMETs. Many industries cannot be manned by mainly PMETs. For example, retail, food and beverages outlets and hotels will continue to need a large number of lower skilled workers. Currently, these sectors already cannot attract enough locals. In the future, the situation will be worse. Those establishments which cannot adjust will close. Jobs will be lost. Those which can survive will face tight labour supply and high labour costs. Singaporeans should be prepared for higher costs of such domestic services and lower service quality levels.
4.\tA moderate GDP growth of 3% - 4% from 2013 to 2020 hinges on a productivity growth of 2% to 3%. There is risk that this growth will not be achievable if productivity cannot be improved from current level. Consequently, there is danger of Singapore descending into a period of weak anemic growth. This will have repercussions on wages, employment and Singapore's attractiveness as an international business destination. Singapore's appeal as an efficient and attractive tourist destination will also be compromised. In such a scenario, we can lose our confidence as a dynamic city.
5.\tMr. Ho Meng Kit, CEO of SBF said: \"The reduction in workforce growth has very serious consequences for businesses. Some Singaporeans do not realise its impact but are seized with the prospect of an over-crowded island with 6.9 million people. We must explain to Singaporeans that many businesses will be in jeopardy if they cannot adjust to this demographic tsunami that will hit us. If businesses go under, jobs will be lost, Singaporeans will be affected. If businesses cannot raise productivity and sustain profits, they cannot afford to pay Singaporeans higher salaries. The population projections in the Population White Paper are already tough for companies. It is unthinkable if Singaporeans choose to further limit immigration and the number of foreign workers. This will damage our competitiveness and Singapore will lose its shine. We do not want to see our children working overseas because there are no more good opportunities here.\"
6.\tProviding an SME perspective, Mr. Lawrence Leow, Chairman of the SBF-led SME Committee said: \"The population paper has painted the harsh realities of Singapore's population statistics and their implications. Unfortunately it is the SMEs that will be hardest hit. SMEs currently employ some 70% of the local workforce. They are more than economic contributors as their sustained presence has impact on the lives of Singaporeans. Many SMEs operate as subcontractors or across labour-dependent service sectors. The shift towards 2/3 of local workforce to PMET jobs and only 1/3 to non-PMET jobs is unimaginable for many SMEs' business model. A lot of SMEs whose operations cannot be moved offshore will be rendered out of business. This in turn has an even wider implication as many multinational corporations (MNCs) here rely on SMEs for services and as part of their supply chain. The net effect is that many more jobs could be lost. We urge Government to delay further tightening of foreign workers restrictions until there are clear evidence of small businesses succeeding in business restructuring and productivity increment.\"
The part in bold is what concerns me. I hope we don't become the new exporters of maids and manual labourers. -
Govt announces land use plan to sustain 6.9m population
(source: http://sg.news.yahoo.com/govt-announces-land-plan-sustain-6-9m-population-052723558--sector.html)
To support this ambitious plan, the government will look to reclaim additional land, develop some reserve land, ramp up new developments and recycle land such as old industrial estates and some golf courses to achieve higher land productivity.
By 2030, more than half of Singapore (58 percent) will be allocated for housing as well as other requirements, including industry and commerce and green spaces.
Specifically, 13,000 ha or 17 percent of land will be set aside for the housing needs of Singaporeans.
Beyond 2030, more land will be reclaimed to support the larger population. Singaporeans can also look forward to the development of new growth corridors in the north (from Woodlands to Punggol) and in the south (from Tanjong Pagar to Pasir Panjang Terminal).
Meanwhile, the government will also look at using technology and implement solutions to further optimise land use. -
3Boys:
That particular one is a bit strange. If businesses go under, jobs will no doubt be lost. But there are fewer people around to be doing those jobs in the first place. Those particular businesses go under because they are unable to get people to fill those jobs, remember?Anyway, here is the view from the Singapore Business Federation (SBF) on the issue. I know pro-business opinions gains no traction in this forum, so FWIW.
5.\tMr. Ho Meng Kit, CEO of SBF said: \"The reduction in workforce growth has very serious consequences for businesses. Some Singaporeans do not realise its impact but are seized with the prospect of an over-crowded island with 6.9 million people. We must explain to Singaporeans that many businesses will be in jeopardy if they cannot adjust to this demographic tsunami that will hit us. If businesses go under, jobs will be lost, Singaporeans will be affected. If businesses cannot raise productivity and sustain profits, they cannot afford to pay Singaporeans higher salaries. The population projections in the Population White Paper are already tough for companies. It is unthinkable if Singaporeans choose to further limit immigration and the number of foreign workers. This will damage our competitiveness and Singapore will lose its shine. We do not want to see our children working overseas because there are no more good opportunities here.\"
The part in bold is what concerns me. I hope we don't become the new exporters of maids and manual labourers.
So, it does not follow that there will be \"no more good opportunities here\". That depends on what businesses go under and what kinds of jobs are lost as a result. -
As our children become better educated, they will be able to compete globally in good jobs overseas.
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pirate:
It's not just single companies or single industries. The economy is an ecosystem, if you take out enough key components, the whole thing can just collapse on itself.
That particular one is a bit strange. If businesses go under, jobs will no doubt be lost. But there are fewer people around to be doing those jobs in the first place. Those particular businesses go under because they are unable to get people to fill those jobs, remember?3Boys:
Anyway, here is the view from the Singapore Business Federation (SBF) on the issue. I know pro-business opinions gains no traction in this forum, so FWIW.
5.\tMr. Ho Meng Kit, CEO of SBF said: \"The reduction in workforce growth has very serious consequences for businesses. Some Singaporeans do not realise its impact but are seized with the prospect of an over-crowded island with 6.9 million people. We must explain to Singaporeans that many businesses will be in jeopardy if they cannot adjust to this demographic tsunami that will hit us. If businesses go under, jobs will be lost, Singaporeans will be affected. If businesses cannot raise productivity and sustain profits, they cannot afford to pay Singaporeans higher salaries. The population projections in the Population White Paper are already tough for companies. It is unthinkable if Singaporeans choose to further limit immigration and the number of foreign workers. This will damage our competitiveness and Singapore will lose its shine. We do not want to see our children working overseas because there are no more good opportunities here.\"
The part in bold is what concerns me. I hope we don't become the new exporters of maids and manual labourers.
So, it does not follow that there will be \"no more good opportunities here\". That depends on what businesses go under and what kinds of jobs are lost as a result.
I gave the example previously on another thread about Rolls Royce aerospace, the companies that support it, and that it gives business to, and then the other companies that rely on those satellite companies.
If F&B goes out the window, then how do we deal with tourism? If tourism goes out the window, then how about Changi Airport and SIA? If SIA goes out the window, then what do we do about businesses set up here? You think all your high-end high-value jobs will survive in an unbalanced economy?
The vibrancy of the economy is an interplay of a whole lot of industries, relying on and supporting each other. -
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3Boys:
I agree. The wealth and foreigner bashing in some websites is actually, personally, quite worrisome.[
Frankly, this class war thingy is getting tiresome. Do we not push our kids to excel, and to excel does it not mean to be able to do things better?I just don't understand the hang ups
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3Boys:
No, I never ask to crimp jobs here. My response is in relation to the point that they may have to work overseas in manual jobs.Coolkidsrock2:
As our children become better educated, they will be able to compete globally in good jobs overseas.
So that's the plan? Crimp jobs here and send our kids overseas to work?
It may not necessarily be so because our kids are better educated and they can work in professional jobs.
Moreover, the world is dynamic and we really do not know how it will be like in 10 years time. -
I'd like to highlight another paragraph.
\"6.\tProviding an SME perspective, Mr. Lawrence Leow, Chairman of the SBF-led SME Committee said: \"The population paper has painted the harsh realities of Singapore's population statistics and their implications. Unfortunately it is the SMEs that will be hardest hit. SMEs currently employ some 70% of the local workforce. They are more than economic contributors as their sustained presence has impact on the lives of Singaporeans. Many SMEs operate as subcontractors or across labour-dependent service sectors. The shift towards 2/3 of local workforce to PMET jobs and only 1/3 to non-PMET jobs is unimaginable for many SMEs' business model. A lot of SMEs whose operations cannot be moved offshore will be rendered out of business. This in turn has an even wider implication as many multinational corporations (MNCs) here rely on SMEs for services and as part of their supply chain. The net effect is that many more jobs could be lost. We urge Government to delay further tightening of foreign workers restrictions until there are clear evidence of small businesses succeeding in business restructuring and productivity increment.\" -
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