There were 1,928,300 residents in the
labour force in June 2008, comprising 1,093,200 males and 835,100
females. The resident labour force grew by 2.7%[1] from 2007 to 2008
(June periods), up from 2.0% in the preceding year. This was driven
by both growth in the resident population and female labour force
participation rate.
Despite the more challenging economic
outlook, the employment rate for the resident population aged 25 to
64 rose to a new high of 77.0% in 2008 from 76.5% in 2007. The
improvement mainly resulted from more females who were previously
outside the labour force becoming employed...
In view of the continued deterioration in
the outlook for external and regional demand, MTI has moderated the GDP
growth forecast for 2008 further downwards to around 2.5%.
The economic downturn is expected to
last for several quarters, well into 2009...
This downturn is just beginning. No one can
say how long it will last and how deep the downturn will be. Recovery
will come when the property market in America reaches bottom and begins
to rise. That may not be for many months or even years.
Fortunately, in Singapore, having
learned from the 1997/98 financial crisis, we have not allowed a
speculative rise in residential property prices. Few citizens have
bought homes that they cannot afford to service their instalments on
their mortgages. High price condominiums and office properties have
declined in prices...
Preliminary estimates show that employment
grew by 57,800 in the third quarter this year. This was lower than the
gains of 71,400 in the preceding quarter and 58,600 in the third quarter
of 2007...
Preliminary estimates show that 2,000
workers were retrenched in the third quarter of 2008, up from 1,798
in the previous quarter and 1,827 in the third quarter of 2007...
Growth of the Singapore economy moderated in
the fourth quarter of 2007. Advance estimates[1] show that real gross
domestic product (GDP) rose by 6.0 per cent on a year-on-year basis in
the fourth quarter, following a 9.0 per cent gain in the previous
quarter...
High growth has benefited all Singaporeans.
A record 172,000 jobs were created in the first three quarters of the
year. Unemployment is down to 1.7%, the lowest in almost a decade.
Companies are reporting bigger profits, and
workers are enjoying higher bonuses and wages. Low-income workers
too are earning more, unlike in some previous years...
The trading of OTC commodity derivatives has
also flourished over the years. Last year, total trading volume amounted
to approximately US$600 billion, accounting for almost 8% of global
trades.
Singapore is also home to the largest REIT
market in Asia ex-Japan with a total market capitalization in the region
of USD$20 billion.
The Merrill Lynch report also noted an
interesting investment trend for HNWIs in Singapore. On the average,
alternative investments (including structured products) account for
almost 10% of total portfolio allocation for 2006...
With effect from 1 January 2008, the S Pass
quota for all sectors will be increased from 15% to 25%. The new S Pass
quota will come entirely from companies' Work Permit quota which will be
increased for all sectors. Companies can therefore employ more S Pass
holders, in lieu of Work Permit holders, hence improving the quality of
their foreign workforce...
To strengthen our
global talent attraction and retention efforts, refinements will be made
to the PEP scheme. Foreign professionals whose last drawn fixed monthly
salary overseas was at least S$7,000 will be eligible for a PEP. The PEP
will also be granted to former P1 Employment Pass holders upon
application.
These changes
will take effect from 1 March 2008. Existing and new P1 pass holders
working in Singapore that apply for the PEP ahead of the 2-year
requirement will be accorded in-principle approval. They can apply to
take up the PEP at the end of 2 years on their current P1 pass...
The continued tightening of the labour
market this year has also led to significant gains in income and a
reduction in the number and share of low wage workers...
Excluding the
extreme age bands, the employment rate for those aged 25 to 64 edged up
to a new record of 76.5% from 75.5% a year ago. Supported by efforts to
improve employability of older workers, the employment rate of older
residents aged 55 to 64 rose by 2.5%-points over the year to 56.2% in
June 2007..
MTI forecasts the Singapore economy to grow
by 4.5-6.5 per cent in 2008. This represents a moderation in growth
towards the economy's underlying potential rate, following four years of
above-trend growth.
The market consensus is that the US
economy will slow down in the first half of 2008 as a result of
weaker credit and housing markets before resuming healthy growth
in the second half. This would support GDP growth in Singapore in
the upper half of the 4.5-6.5 per cent forecast range...
Employment continued to grow strongly as the
economy maintained its rapid expansion. Preliminary estimates show that
employment grew by 57,600 in the third quarter of 2007...
Services continued to lead the employment
gains, adding 34,500 workers in the third quarter of 2007. Manufacturing
posted gains of 11,800. Driven by the growth in building activities,
construction increased its workforce by 10,800, continuing the rapid
increase of the previous quarter...
Nonetheless, financial markets have
rebounded recently and underlying economic conditions remain
supportive. GDP growth is therefore on track to come in at the
upper end of the 7-8% forecast range this year, up from the
4.5-6.5% forecast during the April review...
In the Singapore economy, growth will
be led by non-IT manufacturing, construction and business
services, which have built up a strong momentum and are more
dependent on regional and domestic sources of demand as well as
developments in specific product markets.
At this stage, our assessment is that
the Singapore economy is likely to expand at a slower rate in 2008
than in the recent past, reflecting weaker global economic growth.
Singapore’s GDP growth rate is expected to come in within its
potential of 4-6% next year...
According to the latest survey by the Bank
for International Settlements (BIS), average daily foreign exchange (FX)
turnover volume in Singapore jumped 84% from the previous survey in
2004, to reach US$231 billion in 2007.
The survey ranks Singapore as the
fifth largest FX centre in the world and the second largest in
Asia, closely behind Tokyo...
The survey also ranks Singapore as eighth
largest centre globally in terms of over-the-counter (OTC) derivatives
trading, up from twelfth position in 2004...
Total employment grew by an all-time
quarterly high of 64,400 in Q2 07, surpassing the increase of 49,400 in
Q1 07 and 36,400 in Q2 06. This brought employment growth in the first
half of 2007 to 113,800, compared with 81,500 in the same period last
year.
With the robust employment gains, the
seasonally adjusted overall unemployment rate declined significantly to
2.3% in Jun 07 from 2.9% in Mar 07. The resident1
unemployment rate also fell to 3.1% from 4.0% over the same period. An
estimated 76,100 (or 60,200 after seasonal adjustment) residents were
unemployed in Jun 07...
The PTC approved a 1 to 2 cent increase in
adult EZ-Link fares for buses. Senior citizen concessionary EZ-Link bus
fares, which are flat fares pegged to the lowest adult EZ-Link fare band
will also increase by 2 cents...
There will be no increase to all rail
fares, some EZLink adult bus fares, as well as cash fares for
buses, child/student fares and the prices of monthly student/NS
men concession passes...
"The difference in the inflation rates
between the lowest 20% and the higher income groups also narrowed.
"This was due primarily to lower electricity
tariffs and domestic refuse removal fees which have relatively larger
weights for the low income group.
"The main items contributing to the price
increases during the first six months of 2007 for all income groups were
taxi fares, cooked food, holiday travel, accommodation, school & tuition
fees as well as hospitalization fees..."
"Economic growth in the first half of this
year was 7.6%, higher than we had expected. For the whole year, MTI has
raised its growth forecast to between 7 and 8%.
"The good news is that we have added 111,000
jobs in the first half – the highest number ever. Unemployment is very
low, at 2.4%. Workers are enjoying good wage increases and higher
bonuses because businesses are doing well...
"One reason our income gap is widening is
our ageing population. Singaporeans are living longer than ever. We must
help our elderly live comfortably by keeping medical care affordable,
making our city barrier-free, and our public transport wheelchair
friendly. Those with enough savings will feel secure about their
future..."
"Preliminary estimates show that total employment grew
by a record quarterly high of 61,900 in the second
quarter of 2007, as the economy continued its strong
growth...
"Employment grew in all
the major sectors, led by services which added 33,600
workers. Manufacturing posted gains of 16,600, higher
than earlier quarters..."
"Advance estimates1 show that real
gross domestic product (GDP) rose by 8.2 per cent on a year-on-year
basis in the second quarter, up from 6.4 per cent in the previous
quarter...
"Underpinned by strong growth in the
biomedical manufacturing and transport engineering clusters, the
manufacturing sector is estimated to have grown by 10.2 per cent the
second quarter, up from 4.4 per cent in the previous quarter..."
"We are
into a period of good economic growth and social
development. Singapore made 6.6% growth in the last
quarter of 2006 and 6.1% in the first quarter of 2007.
"If there are no wars or
oil crises, this golden period can stretch out over
many years. Investors from developed economies are
pouring money into East and Southeast Asia through
fund managers who are investing in the stock markets
of the region..."
"Overall prices of
private residential properties rose 4.8% in the 1st Quarter 2007,
compared with the 3.8% increase in the previous quarter
"Prices of non-landed properties rose 5.3%
in the 1st Quarter 2007, compared with the 4.3% increase in the previous
quarter. Prices of apartments rose 5.1% while those of condominiums rose
5.4%..."
"As at June 2006, nearly all private sector
establishments surveyed (97%) hired Singapore citizens aged 40 to 49.
However, the proportion employing workers in their 50s declined to 89%
and more sharply to 54% for those older.
"Seven in ten employers cited relevant skills
and work experience as the most common reason workers in their 40s and
50s fit into organisations. Although this was also important for older
workers aged 60 & over (52%), the top reason cited for employing them
was their lower likelihood to job-hop (61%)..."
Ms. Tay Bee Bee,
Director Monetary Authority of Singapore
"Over the last 3 years, Singapore managers
originated more investment CDOs than any other country in Asia ex-Japan,
with an estimated S$6 billion of CDOs in 2006...
"In Asia, Singapore has been pro-active in
providing clarity and certainty on the treatment of CDOs into our
regulatory regime. Banks have been allowed to invest in all tranches of
CDOs, while insurance companies have been permitted to invest in the
equity tranches of CDOs since January 2006..."
"For fiscal year (FY) 2007, 800,000 eligible
households will receive $210 million worth of Service & Conservancy
Charges (S&CC), rental and Utilities-Save (U-Save) rebates as part of
the GST Offset Package announced in the Budget Statement 2007.
"Households can get up to 4 months of S&CC
rebates, 4 months of rental rebates and $220 worth of U-Save rebates.
These rebates will cost the Government $210 million in FY2007 and $800
million in total over 5 years..."
"Preliminary estimates show that total
employment grew by 48,000 in the first quarter 2007. This is higher than
the gains of 45,000 in the same period a year ago, but seasonally lower
than 51,500 in the fourth quarter of 2006.
"All major sectors added workers, led by
services with gains of 33,400 workers. Manufacturing posted increases in
employment of 9,500..."
"Specifically, the re-employment rate of residents
retrenched from PMET jobs rose from an average of 65%
in 2005 to a post-Asian crisis high of 73% in 2006.
"This exceeds the rate
for the other two occupational groups, unlike in past years when
clerical, sales & service workers were the most re-employable...
"In 2006,
private sector establishments each with at least 25
employees retrenched 12,359 workers..."
"Together with the two IRs, these will help
us achieve our target to attract 17 million visitors and generate S$30
billion in tourism receipts by the year 2015...
"In terms of manpower, the two IRs
combined are expected to create some 50,000 to 60,000 additional
jobs throughout the economy when both are fully operational..."
"Total
employment creation for the whole of 2006 rose to an
all-time high of 176,000, surpassing the previous
year’s gains of 113,300. This brought the total number
employed to 2,495,900 persons as at December 06...
"On
average, 67,500 residents were unemployed in 2006,
down from 74,900 in 2005 and the high of 91,200 in
2003..."
"Older persons aged 50 &
over made up close to one-quarter (24%) of the
resident workforce in 2006.
"Reflecting their
relatively less educated profile, the majority (68%)
of older workers were employed in lower-skilled jobs
such as cleaners, labourers & related workers (18%),
plant & machine operators & assemblers (16%) and
service & sales workers (15%).
"These occupations also
registered an above-average incidence of older workers
especially for cleaners, labourers & related workers
where more than half (53%) were aged 50 & over...."
"I will give lower-income Singaporeans
larger GST Credits.
"Those who live in one- to three-room
flats[4] and have annual assessable incomes of $24,000
or less will qualify for the largest quantum of $1,000, to be paid
out in instalments of $250 per year over four years...
"Next, if you live in a larger home
with an AV of more than $10,000, but you earn less than $100,000 a
year, you will get $400 in GST Credits.
"The top income group comprising those
earning over $100,000 a year will get $100. It is a small gesture,
but recognises that the GST increase affects everyone.
"NSmen and NSFs, including those aged
below 21, will also get an additional $100 of GST Credits, to
recognise their contributions to national security...
"The first instalment will be paid out
on 1 July this year, at the same time as the GST increase..."
"Among employed households (i.e.
households with at least one working person), average monthly
household income from work1 grew by 4.3 per cent in
2006 to reach $6,260.
"After adjusting for inflation,
employed households enjoyed real income growth of 3.2 per cent in
2006..."
"76% of the
resident population aged 25 to 64 were employed, the highest since the
data was first compiled in 1991, up from 73% in 1996...
"12% or
172,000 of resident employees were engaged on term contracts in
June 2006 while the remaining 88% were permanent employees3. On
average, employees on term contract drew lower pay than those on
permanent appointments...
"The share
of degree holders almost doubled to 23% from 12% a decade ago..."
"Preliminary estimates show that total
employment grew by 48,800 in the fourth quarter of 2006, considerably
higher than the gains of 35,300 in the same period a year ago, and up
from 43,000 in the third quarter of 2006...
"Total retrenchment for the whole of
2006 was 12,200. Although this is higher than 10,294 in 2005, it
is only about half the number retrenched in 2001 (25,838).
Manufacturing formed the bulk of retrenchments (8,800), followed
by services (3,000) and construction (400) in 2006..."
"In the last five years, our real
per-capita GDP grew on average by 4.3% per annum, but real average
wages (after adjusting for inflation) grew at only half this rate
– 2.1%.
"Higher-end wages have risen by more
than this. But at the lower-end wages have increased by much less,
and some have even stagnated.
"This is why we are implementing
Workfare as a fourth pillar of our social safety net, together
with the CPF, the 3Ms (Medisave, MediShield and Medifund) and HDB
home ownership..."
"The
5-day workweek is the norm, with higher share of
employees now on this arrangement than two years ago.
Close to two in five (40%) full-time employees in the
private sector worked 5 days a week in 2006, up from
34% two years ago.
"Lagging
significantly behind, were the 5½-day (15%), 6-day
workweek (16%), and shift work (17%) each accounting
for less than one in five employees in 2006..."
"Cumulatively in the first nine months
this year, the economy added 124,500 workers, surpassing the gains
of 113,300 for the whole of 2005. This employment creation is the
highest ever recorded1..."
"Between now and 2030, the number of elderly
aged 65 years or older will increase dramatically, from 300,000 to
900,000. 1 in 5 Singaporeans will be aged 65 and above by 2030.
"We will need to provide a wide range of
housing options to meet the different financial needs and lifestyle
preferences of the elderly, from smaller HDB flats like studio
apartments, to private retirement housing with dedicated care
facilities..."
The Ministry of Manpower will introduce a
Personalised Employment Pass (PEP) from 1 January 2007 to help us better
attract and retain global talent...
The PEP allows the holder to remain in
Singapore for up to six months in between jobs to evaluate new
employment opportunities. This helps us to retain selected global talent
who would otherwise have to leave Singapore...
The PEP will be issued only once with a
validity of 5 years. It will be nonrenewable. A PEP holder will retain
the dependant privileges of his original EP type and the minimum annual
basic salary requirement of S$30,000 will continue to apply throughout
the 5-year duration...
Mr Heng
Swee Keat, Managing Director, Monetary Authority of
Singapore
"The Singapore economy grew by a robust 6.4%
last year...
"Barring any unexpected shocks in the
external environment including an escalation in geopolitical risks in
the second half of this year, GDP growth for the year as a whole is
likely to be in the range of 5 to 7%..."
"Continued hiring increases means good news
for Singapore's workforce, while increased optimism continues to fuel
increasing economic growth...
"This optimism is reflected in planned salary
increases and 7% of employers expecting to pay 15% or more, the highest
figure for any market surveyed in Asia..."
Mr Ong
Chong Tee, Deputy Managing Director, Monetary
Authority of Singapore
"...First, real estate investment trusts or
REITs. These have seen explosive growth, particularly in Singapore and
Hong Kong over the last 3 years...
"In Singapore, the market capitalization
weighted-average returns since IPO have been exceptional at over 30%.
The market has also moved beyond traditional REITs to other products
like shipping trusts and hotels...
"Singapore is also a fertile ground for
CMBS development due to its stable economic environment (sovereign
credit rating AAA/Stable/A-1+) and robust legal and land title
system which have enabled structured finance issuers to raise
highly rated debt...."
"Rising wealth in Asia, and the focus
on Asian growth prospects have seen total assets under management
in Singapore's fund management industry grow from about S$280
billion in 2000 to much more than S$600 billion now.
"Growth in private banking assets under
management has also been strong, with anecdotal feedback suggesting
Singapore private banking AUM averaging 20% per annum over the past
few years to about US$200 billion currently...
"Our reputation for high standards of
regulation and supervision and a robust legal and judicial
framework, is trusted by financial intermediaries and clients alike
to conduct wealth management activities..."
All the major sectors registered increases
in employment. The bulk of the employment gains continued to come from
the services sector (28,000)...
There was also a notable improvement in the
long-term unemployment from a year ago. Some 10,100 residents or 18% of
the unemployed residents have been looking for work for at least 25
weeks in Mar 06, about half the 20,200 or 30% a year ago...
First, I will distribute Growth Dividends to all
adult citizens...
Those earning not more than $24,000 per
year will get more...
Those living in properties with AV less
than or equal to $6,000 will get more. $6,000 will cover all those
who live in 1, 2, and 3-room HDB flats and almost everyone who lives
in a 4-room HDB flat...
Table 2.
Structure of Growth Dividends
Annual Value of Home $6,000 or
less
Annual Value of Home more than
$6,000 and up to $10,000
Annual Value of Home more than
$10,000
Annual
Assessable Income $24,000 or less
$800
$600
$200
Annual
Assessable Income more than $24,000
$600
$400
To show our gratitude to these ex-NSmen
and NSmen who have completed their ORNS training cycle, we will give
them a 40th Anniversary NS Bonus of $400.
National servicemen who are still
serving, either in the full time or ORNS units, and have not yet
completed their ORNS training cycle, will receive a 40th Anniversary
NS Bonus of $100...
Notification letters will be sent out in
late March to all Singaporeans informing them of the total amount
that they can expect under the Progress Package...
Singaporeans can look forward to
receiving their Growth Dividends, Workfare Bonus and 40th
Anniversary NS Bonus, and the CPF top-ups on 1 May 2006...
Our society will have to make many
adjustments as our population grows older. We need to put in place
policies and programmes to enable Singaporeans to live more
meaningful and fulfilling lives in their golden years.
We must review issues such as
elder-friendly housing, barrier-free access to buildings and public
transport, and affordable medical care during old age. These issues
will become increasingly important to the growing numbers of senior
citizens. The Committee on Ageing Issues (CAI) has been studying
them and will publish its report soon.
In addition, the Tripartite Committee on
Employability of Older Workers has just put out its recommendations
to make it easier for older workers to stay employed. The Government
supports these recommendations, and will work with its tripartite
partners to help older workers upgrade their skills, find jobs, and
contribute in productive ways to our society.
"The scheme primarily targets those within
the lowest 20% of income earners who earn $1,200 per month or less.
"The Committee recommends that those in
the lowest 10% should be given more help. If surpluses allow, we
recommend for this group earning $900 or less a month, a Workfare
bonus capped at the equivalent of one month’s salary.
"Correspondingly, those earning more than
$900 to $1200 (lowest 20% of income earners) per month could receive
a bonus capped at half a month’s salary..."
We grew by 5.7% in 2005, better than
expected. Growth was broad-based. Manufacturing output rose sharply and
the services industries also did well...
"In the first three quarters, we created
78,000 jobs. This reduced the unemployment rate to 3.3%. For the whole
of 2005, employment creation should match or even exceed the 108,500
jobs recorded in 2000. Wages increased by around 4% and many workers
enjoyed good bonuses. Overall, Singaporeans have become more confident
and optimistic..."
"Today, services make up seven out of every
ten jobs, compared to six out of ten jobs in 1990. In particular,
employment within the financial and business services sector has more
than doubled since 1990.
"But there is also a third, important trend,
and that is that people will have to change jobs more often in their
lifetimes..."
"The property market recovery is not confined
to the private housing sector. All the other sectors of the property
market are recovering in tandem with the strong growth of our economy...
"In 2006, Singapore’s GDP is projected to
grow by another 3% to 5%. Robust growth in the manufacturing, tourism
and financial sectors, and the diversification of our economy into new
areas like the life sciences, education and health, are helping to drive
growth in our economy..."
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