Workforce expansion and productivity key to Singapore's growth, says SM Lee

He emphasised that the city-state would do well if it could sustain growth at around 2% to 3% annually.

Businesses in Singapore should prioritise workforce expansion and productivity improvement as essential strategies for achieving sustainable growth, said Senior Minister Lee Hsien Loong.

During a dinner hosted by the Singapore Business Federation (SBF), he said the city-state would do well if it could sustain growth at around 2% to 3% annually.

“Individual companies can raise productivity by upgrading their workforce, creating new opportunities, applying those breakthroughs to their business, developing new markets, and earning more money,” Loong said

He emphasised the need for businesses to adapt to a rapidly evolving international landscape marked by rapid technological advancements and geopolitical tensions.

“Nations compete to secure an edge in emerging areas like biotechnology and AI. There is also intense geopolitical contestation, especially between the US and China; and between the US and Russia,” Loong said 

“We have an extensive network of trade agreements that gives our businesses good access to markets overseas, even in this environment,” he added. 

Loong mentioned the Regional Comprehensive Economic Partnership (RCEP) and the Indo-Pacific Economic Framework (IPEF) as examples. 

“We have also concluded the Digital Economy Partnership Agreement (DEPA) with Chile and New Zealand; and we have similar bilateral agreements with the UK, Australia, and South Korea,” he noted.

In the green economy, Loong said initiatives like the Singapore-Australia Green Economy Agreement and the IPEF Clean Economy Agreement would support the country’s transition. 

In Singapore, he reminded companies that they can depend not only on a pro-enterprise government but also on a supportive Labour Movement. 

“Trade associations and chambers (TACs) are important players in this industry transformation. They have partnered with the government to set up an island-wide network of SME Centres, to offer business advisory services and capability-building workshops,” he added. In the past year, more than 25,000 SMEs have benefited from these services. 

The minister also mentioned NTUC for launching Company Training Committees (CTCs), to translate the Industry Transformation Maps (ITMs) into training programmes for the needs of individual companies. 

Many companies have set up CTCs, utilised CTC grants to digitalise and streamline workflows, and upskilled workers with the help of NTUC’s LearningHub.

“Our Tripartite Partnership has served us well for half a century and continues to give Singapore a competitive advantage. I greatly appreciate employers’ commitment to tripartism, and its contributions to tripartite forums such as the NWC,” Loong concluded.