Promoting SMEs and Enhancing Labor Productivity in Singapore: A Policy Analysis

Abstract

While Singapore has been doing well in terms of cross-country per capita income comparisons and in terms of overall employment growth, it has been a laggard when it comes to labor productivity and this concern is more serious for small and medium enterprises (SMEs). In this context, this paper first identifies the sources of gross domestic product (GDP) growth and simulates different scenarios pertaining to the potential GDP which the economy can achieve given the level of required productivity based on some employment-growth assumptions. Further, the paper reevaluates the performance, challenges and opportunities for SMEs as well as suggests several policy strategies as to how SMEs can synergize and be more competitive moving forward.

Development Growth Models for Singapore and Malaysia: A Geweke Causality Analysis

“…For a specific discussion on the flying geese model and East Asian growth story, see Tan et al (2014). network exports in parts and components for Singapore grew from about 30 percent during 1992-1993 to 50 percent during 2006-2007, with the corresponding figure for Malaysia rising from around 28 percent to 54 percent during the same period.…”

“…See Tan et al (2014) and Kumagai (2015) for a discussion on the relevance and application of the flying geese model to the East Asian growth model.…”

“…According to the flying geese model, developed countries or regions tend to relocate their manufacturing and labor-intensive industries to developing countries or regions through international trade and international investment, resulting in industrial restructuring and technological upgrading (Akamatsu, 1962). For a specific discussion on the flying geese model and East Asian growth story, see Tan et al (2014).…”