Any action to tackle slowdown must address jobs issue head-on

ECONOMIC activity in Singapore is likely to stay lacklustre over the next 18 months, with wages expected to grow slower this year and the next.

Any trade-related cluster faces "significant uncertainties" as well, with electronics-related industries seeing higher volatility in recent months. So said the Monetary Authority of Singapore (MAS) in its latest biannual macroeconomic review last week. The MAS - which recently announced monetary easing measures - also noted that regional trade flows and supply chains are also being reconfigured, adding to the uncertainty.

Singapore's economic growth has slowed sharply to 0.1 per cent from a year ago in the second and third quarters. Full-year growth is expected to be around the midpoint of the forecast range of zero to one per cent, before improving modestly next year. The government has said that it is ready to act if things get worse. If it comes to that, one area which needs particular attention is the job market.