Productivity initiatives under threat from unfavourable demographics

An ageing population could undermine growth.

An aging population and a shrinking labour pool could undermine the government’s efforts to raise productivity, the Asian Development Bank stated in a report today.

The ADB noted that while authorities plan to enhance productivity over the next decade, Singapore’s demographics could inhibit the growth of established enterprises and the launch of new ones.

“An effective response would be for Singapore to extend to capital and labor flows the kind of liberal external economic policy it maintains for trade in goods and services,” stated the ADB.

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