Economic downturn Coping with economic headwinds
I am really worried for the future of Singapore. Our past business model is to provide services to the world. 

We were heavily reliant on global trade, logistics, international travel, tourism, financial services and casino.

All of these industries were badly hit by the trade war between America and China and now by the covid-19 pandemic.

To make matters worse, we have a high cost of doing business. We were inefficient and incur cost on unnecessary and wasteful activities. This makes us uncompetitive across many industries. 

What can be done to correct our competitiveness? How can we create jobs for our people?

We have to reduce our cost of living and the cost of doing business. We have to suspend GST for the next few years. We have to get rid of unnecessary and wasteful activities, so that we are lean and efficient. 

We have to create jobs by providing services to the local population. These are jobs that now go to foreign workers, e.g. public transport, food, maintenance. 

We have to make these jobs suitable for locals by paying adequate wages and make them dignified. 

We have to create jobs, paid largely from state funds, to provide personal services to customers. These are jobs that have disappeared due to the wrong kind of automation that make life stressful for customers. (For example, spending a long time to get through an automated call center).  They will improve the quality of life for the people.

Over the long term, some of the jobs that depend on global trade will return. But, we have to deal with the challenges that lies ahead over the next few years. 

Tan Kin Lian


 

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