Expect Singapore growth to slow as economy matures: Prime Ministers' Office

Above 5% growth will be a thing of the past.

Speaking at the Institute of Policy Studies Forum on Tuesday (Oct 23), Minister of Prime Minister's Office, said that while Singapore have
historically attained above 5 percent GDP growth over the last few decades, with an average workforce growth of about 3.6 percent each year, we cannot expect similarly high growth going forward. 

"Going forward, we expect growth to slow as our economy matures and we no longer enjoy the demographic dividend of the previous decades. . The Economic Strategies Committee has set a growth target of 3 to 5 percent a year over this decade, coming from 1 to 2 percent workforce growth and 2 to 3 percent productivity growth," she said.

"To maintain our economic vitality, we will need a steep improvement in productivity, complemented by a calibrated inflow of foreign worker," she added. 

Minister Fu said that quality growth requires collaboration between the Government, businesses and unions to drive productivity improvements, up-skill our workers and encourage more  residents to enter and stay in the workforce.

A calibrated flow-through of transient  foreign workers, she added,  can also anchor new industries, take up jobs that support our social and economic needs, and forge a diverse workforce that drives dynamism and new ideas.