PM Lee on the future of Singapore: Good jobs will be scarcer, and unemployment will be higher
Posted by temasektimes on June 9, 2012
Speaking at the Economic Society of Singapore’s annual dinner on Friday evening, PM Lee said Singapore’s economy will experience growth slower than in the last 10 years as a result of a more developed economy, internal resources constraints and fierce competition from the region.
“Singapore cannot avoid slower growth in the next decade and beyond. This is natural because we are now more developed and we are also running up against land and labour constraints, especially as we reduce the inflow of foreign workers,” he said.
The slower growth will have repercussions for Singaporeans:
“For Singapore, slow growth will mean fewer new investments. Good jobs will be scarcer, and unemployment will be higher,” he added.
Despite the rapid economic growth experienced by Singapore in the last decade, social mobility has declined partly due to rampant inflation, sky-rocketing property prices and stagnant wages.
The situation is unlikely to improve in the near future as the Singapore domestic economy continues to be dominated by a few giant government-linked companies and foreign direct investments being diverted to other countries in the region.