Economic Growth Requires Innovation, Investment, and Workforce Development
Singapore must undergo continuous transformation to meet its ambitious productivity targets and achieve sustainable economic growth, said Deputy Prime Minister and Finance Minister Lawrence Wong in Parliament.
Speaking during the Budget 2024 debate, Mr. Wong emphasized that businesses must innovate, workers must upgrade their skills, and new industries must replace declining sectors to sustain long-term growth. Singapore aims for an annual GDP growth rate of 2-3%, with 1-2 percentage points driven by productivity improvements—a challenging goal that few advanced economies have achieved.
To support this transformation, the government is investing in research, innovation, and enterprise, allocating S$3 billion to the Research, Innovation, and Enterprise 2025 plan. Additionally, attracting high-quality investments is essential to drive productivity and wage growth, ensuring that businesses remain competitive in the global market.
Mr. Wong also addressed concerns about inflation, stating that monetary policy adjustments helped prevent excessive price increases. While inflation is declining, the government remains committed to targeted financial support without overstimulating demand.
Recognizing the importance of a balanced workforce, he highlighted that foreign labor inflows will complement local talent, supporting steady workforce growth of about 1% per year. At the same time, SkillsFuture initiatives will help Singaporeans upskill, with the new Level-Up programme playing a key role in this effort.
Ultimately, Singapore’s goal is not just to chase growth targets, but to enhance economic opportunities and improve livelihoods for all citizens.
