MOS Lee Yi Shyan's reply to Parliament Questions on productivity-driven growth

Question No 211 of Notice Paper No 227 of 2009.

Name and Constituency of Member of Parliament
Mdm Ho Geok Choo (West Coast GRC)

Question:
To ask the Minister for Trade and Industry (a) how can productivity-driven growth be facilitated across the various economic sectors; (b) how should various industries and sectors enhance their human resource management and practices to be productive; and (c) whether he can provide reasons for the drop in productivity in Singapore.

Answer:
1. In the run-up to the crisis, our productivity growth averaged 3.2% p.a. (2002-2007), which compares favorably against the 1.9% growth achieved by the OECD countries over the same period.

2. Nonetheless, we need to continue to strengthen our productivity fundamentals to ensure sustainable economic growth and safeguard Singapore’s competitiveness. A joint MOM-MTI Productivity Taskforce was formed in February 2009 to examine the drivers of productivity, with the Services sector as a key area of focus. The Taskforce highlighted 4 strategies to raise productivity in the Services sector. They are i) undertake research and benchmarking to establish the relevant productivity metrics and develop new tools to enhance productivity; ii) raise service excellence to achieve service that is both effective and efficient; iii) invest in greater innovation to improve products and processes, and iv) enhance human resource management. The Economic Strategies Committee is also studying how enterprise productivity can be improved and will make its recommendations to Government in due course.

3. Currently, companies can tap on a wide range of government schemes to help raise their productivity. For example, SPRING has the Technology Innovation Programme to help companies secure technology consultancy services as well as fund plans to accelerate technology adoption in business operations. There is also the Local Enterprise Technical Assistance Scheme, which helps companies to bring in experts to improve business management and operations.

4. Good human resource management is also key to improving productivity. Companies can leverage on the Human Resource Workforce Skills Qualifications (HR WSQ) and Leadership and People Management Workforce Skills Qualifications (LPM WSQ) framework developed by WDA to help them improve their human resource practices. At the national level, MOM has also formed strategic partnerships with leading institutions to share best-in-class programmes with local HR practitioners, for example the HRST and Hot Spots Programme.

5. Beyond companies, we will work with industry associations to raise awareness of productivity issues, facilitate the sharing of best practices and the development of productivity tools and techniques relevant to the context of their industries..