The future of wages in Singapore

• Main Author: HOON, Hian Teck
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2013
• Subjects: Asian Studies; Labor Economics
• Online Access: https://ink.library.smu.edu.sg/soe_research/2084; https://ink.library.smu.edu.sg/context/soe_research/article/3084/viewcontent/ST_20130205_1.pdf
• Institution: Singapore Management University

Prof Hoon discussed the future of wages in Singapore and identified major trends affecting Singapore's labour market over the past decade. He noted that in the future, SMEs that are unable to raise workers' productivity to match the higher labour costs will exit the industry, thus leading to job destruction. Also, for there to be a steady supply of jobs with good pay for Singaporeans, the country would need to continue to attract MNCs by harnessing its relative strength in institutional quality and the availability of a highly skilled workforce. Success in helping SMEs to raise their productivity levels and sell into overseas markets would also be vital. Meanwhile, the upward trend in human capital investment is likely to continue. Prof Hoon commented that as more Singaporeans acquire the higher skills for taking advantage of new technologies to launch new business ideas, they may be prepared to take the plunge to become entrepreneurs.