Budget 2015: a chance to recalibrate policies and targets

THE upcoming Budget 2015 presents the Singapore government with a suitable and timely opportunity to recalibrate its approach to economic restructuring and particularly its push for greater productivity.

There is a need for recalibration because the initial targets may be unattainable using current approaches. Productivity is an important case in point. Singapore's productivity growth has been dismal over the last few years. According to the Department of Statistics, productivity growth here has declined from 2.2 per cent in 2011 to -1.4 per cent in 2012, -0.2 per cent in 2013 and -0.5 per cent last year (based on the first three quarters of 2014).

This is a far cry from the targeted 2-3 per cent productivity growth per annum over the decade, a goal which was set in 2010.