LABOUR-INTENSIVE firms must wake up to the fact that the days when cheap labour was plentiful are gone ("Manufacturing jobs most at risk, NTUC warns"; Jan 16).
In the 1960s, Singapore developed labour-intensive industries manufacturing garments, textiles, toys and so on.
A decade later, we shifted to a more highly skilled workforce to attract foreign direct investment in electronics.
In the 1980s, as our economy grew and our workforce became more educated, Singapore moved into capital-intensive and high-tech industries like wafer and disk drive manufacturing.
The 1990s saw the birth of our technology drive, which moved us up the value chain and carried us into the 2000s, where innovative entrepreneurship and research and development were encouraged.
Transformation is inevitable if we are to stay afloat. Gradually, we need to reduce our reliance on cheap foreign labour to continue growing.
Manufacturing firms with low productivity must move towards higher-value activities and catch up on automation. Other manpower-intensive sectors, such as retail and food and beverage, must do the same.
Restructuring will not be easy and will involve costs, but not doing so puts firms at risk of becoming obsolete.
To survive, Singapore must be different from the rest and migrate to knowledge-based industries like pharmaceuticals and biologics. We cannot sit still, but must be one step ahead of other countries by increasing our productivity and developing our niche industries.
If sunset industries continue to believe that the end justifies the means and not improve productivity, they will lose their competitive advantage and more may be forced to wind up or relocate.
Francis Cheng
In the 1960s, Singapore developed labour-intensive industries manufacturing garments, textiles, toys and so on.
A decade later, we shifted to a more highly skilled workforce to attract foreign direct investment in electronics.
In the 1980s, as our economy grew and our workforce became more educated, Singapore moved into capital-intensive and high-tech industries like wafer and disk drive manufacturing.
The 1990s saw the birth of our technology drive, which moved us up the value chain and carried us into the 2000s, where innovative entrepreneurship and research and development were encouraged.
Transformation is inevitable if we are to stay afloat. Gradually, we need to reduce our reliance on cheap foreign labour to continue growing.
Manufacturing firms with low productivity must move towards higher-value activities and catch up on automation. Other manpower-intensive sectors, such as retail and food and beverage, must do the same.
Restructuring will not be easy and will involve costs, but not doing so puts firms at risk of becoming obsolete.
To survive, Singapore must be different from the rest and migrate to knowledge-based industries like pharmaceuticals and biologics. We cannot sit still, but must be one step ahead of other countries by increasing our productivity and developing our niche industries.
If sunset industries continue to believe that the end justifies the means and not improve productivity, they will lose their competitive advantage and more may be forced to wind up or relocate.
Francis Cheng
