Why Singapore's 2-3% labour productivity target is 'ambitious'

Historical productivity growth shows the reasons.

According to Moody's, they consider as ambitious the Singapore government's aim to increase labor productivity by 2% to 3% every year until 2020, and 1% to 2% between 2020 and 2030.

Moody's also said that this is given the historical productivity growth in other advanced economies, which ranged from -0.4% to 3.2% per year between 2000 and 2010, and because Singapore's overall productivity decreased by 2.6% last year.

"In addition, government initiatives to improve productivity through, for instance, tax incentives, grants and subsidies will likely show positive results only in the next two to three years."

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