Mr Leon Perera: To ask the Minister for Trade and Industry (a) what is the contribution of Total Factor Productivity (TFP) to GDP growth in each of the past 10 years; (b) what has been the growth in TFP in each of the past 10 years; (c) how does Singapore's TFP performance compare to that of other developed countries; and (d) what drivers and restraints of Singapore's recent TFP growth has the Ministry identified.
Oral Answer by Minister for Trade & Industry Mr Chan Chun Sing
1. Between 2008 and 2018, Singapore’s Total Factor Productivity (TFP) increased by 0.5 per cent per annum. This is about 12 per cent of our GDP growth of 4.5 per cent per annum over the same period. Since 2016, TFP growth has increased to 0.9 per cent per annum, or around 27 per cent of GDP growth.
2. Singapore’s TFP performance was stronger than or comparable to most OECD countries. Between 2008 and 2018, France’s TFP rose by 0.3 per cent per annum, while Finland’s TFP growth was 0 per cent per annum. TFP growth in Germany and the United States was similar to ours, at 0.5 per cent per annum.
3. The pickup in our TFP growth in recent years can be attributed to our economic restructuring efforts, which are important to raise productivity and to transform our industries through innovation and internationalisation. It is also due to initiatives like SkillsFuture to upskill our workers and support lifelong learning.
4. Transforming our economy and raising TFP are long-term efforts. We are making progress and must continue to focus on these areas in the years ahead, building on the strong tripartite partnership between Government, employers and the labour movement in Singapore.