ALL THINGS BIG AND SMALL 2.0

Recently, Singapore citizens who were born before before 31 Dec 1949 were accorded the status of Pioneer Generation by the Singapore government. This group of over-65 baby boomers received several perks and privileges such as on healthcare and transportation costs. According to the government, Singapore owes its success to their stoic, conservative and hardworking nature, their endurance of hardship, their determination to ensure that their children receive a good education and are inculcated with the right values. But now that they are old, we would think that they would be contented to retire and have a good rest. However: Yesterday, in the elevator, I met the lady who sells fresh chicken meat in the market. I asked her why every time I pass by, her stall is closed. She said she spent three weeks in the UK, with her son who has a Masters in Engineering from Imperial College on a government scholarship and is now working for a multinational corporation in London .She still wi sh...

CAN SINGAPORE’S LABOR PRODUCTIVITY IMPROVE MUCH FURTHER? Not a day passes without an exhortation from our government to increase productivity (especially labour productivity). So how is labour productivity usually measured? It is: Total Output /Total Man Hours Worked. Total Output of a country is its Gross Domestic Product (GDP), which is the Value Add of the economy without double counting outputs which are also inputs to another activity. The charts below show statistics on average daily wage cost (US$) and Labour Productivity in Manufacturing (US$) of ASEAN countries plus China  Chart 1 shows two types of column bars representing average daily wage cost and labour productivity both measured in US$. *Numbers taken from McKinsey Global Institute. This chart roughly shows that Wage Cost and Productivity have a very strong correlation. That is, higher productivity goes with higher wages and vice versa, though we are not saying whether it is the tail that wags the dog or dog t...