Home News Featured News Credit Suisse: Singapore's exports losing competitiveness due to rising costs

Credit Suisse: Singapore’s exports losing competitiveness due to rising costs

Author

Date

Category

- Advertisement -

By: Kheng-Liang Tan

According to a new report by Credit Suisse, Singapore is losing export competitiveness compared to the rest of the region due to its rising costs of businesses.

The report noted that wages in Singapore has “continued to rise in spite of low productivity growth, depressing corporate profits… driven in part by the foreign- labour curbs imposed since 2010″

A separate report released last year showed that real wage growth has increased by 1.1% over the past 5 years while productivity growth has managed only 0.4% within the same period.

- Advertisement -

As a result of wages not keeping up with productivity, new investments have slowed down while existing businesses are investing less, according to surveys.

The authors also foresees that the MAS will engage in monetary policy easing at its next October meeting due to a combination of flagging economic growth, negative inflation and a dependence on exports.

It was further noted that Vietnam, Philippines and China are winning the export race in Asia due to their improving competitiveness and having the right product mix.

Earlier this month, it was reported that July non-oil exports slumped 10.6% year-on-year against economist expectations of 2.5%. Separately, factory output fell by 3.6%.

- Advertisement -

Woman who crosses racial boundaries to comfort man seeks validation online

Singapore -- A young woman has taken to NUSWhispers to seek validation after she comforts a stranger on the train by hugging him. In her submission, which was posted on Saturday (Jan 16) and has garnered almost 1,000 reactions, the 23-year-old Chinese...

Viral video: Dog without leash gets chased by owner at intersection

Singapore – A video of an owner chasing her unleashed dog at an intersection with the dog almost getting run over by a lorry and the owner falling over in her attempt, has gone viral online. On Wednesday (Jan 20), Facebook page...

Domestic worker accused of abusing elderly woman in wheelchair

Singapore -- A netizen who saw a domestic worker abusing an elderly woman in a wheelchair has posted a photo of them in the hopes of reaching out to the latter's family. In a Facebook post on Sunday (Jan 17) that has...