Is it time to try a different tack in Singapore’s quest for elusive productivity growth?

Take a second look at the ESC’s recommendations, SMEs urge.

As the country’s productivity continues to languish, small and medium enterprises (SMEs) are urging the government to review the Economic Strategies Committee’s recommendations for Singapore’s economic growth.

According to the Singapore Business Federation’s SME Committee, the ESC set a target for Singapore to achieve productivity growth of 2% to 3% per year over the next ten years in 2010. However, labour productivity growth averaged just 0.1% from 2011 to Q2 2014, and 0.4% if construction is excluded.

“While efforts are continuing to raise productivity and develop new capabilities, new business trends and markets have emerged since the recommendations were released five years ago. A review of the ESC recommendations and targets could be conducted to assess how we are doing and whether the approaches SME sector,” stated the SME Committee.

Members of the financial sector have also stepped up calls for the government to aid SMEs through the country’s restructuring pains. In particular, EY and Deloitte have called for improvements to the popular Production and Innovation (PIC) scheme in their Budget 2015 wish lists.

“This Budget, we want continued support for our business community and more certainty in our tax regime. More attention also needs to be paid to ensure our productivity-centric incentives are effective,” stated Chung-Sim Siew Moon, Head of Tax Services, Ernst & Young Solutions LLP.