Real people to push productivity

Editorial, The Straits Times, 10 Mar 2012

ECONOMIC restructuring initiatives here are as old as independence itself. The city-state has moved from its traditional role as an entrepot to an industrialising economy powered by manufacturing and construction. Then came the push for an international business hub driven by services. The aim has been to move up the value-added ladder and spur innovation and productivity. At every stage of the transition, pain was felt before results could be seen.

Adapting to such economic change should therefore be second nature to Singaporeans. However, as recent parliamentary debates reveal, it is not easy for both employers and employees to embrace another round of retooling. Restructuring is a big word and the whys and hows of the process often remain vague at the shop-floor level. To give a fillip to the movement, labour chief Lim Swee Say had to emphasise that trying to put off change would lead to bigger problems down the road.

So, how can the message be driven home?

Forget about Teamy the Bee and yet another campaign to give productivity a buzz.

Far more effective would be for the Association of Small and Medium Enterprises to play a more active role in its public outreach and media programmes, by, say, highlighting real- life stories of SMEs which have weathered challenges successfully. Examples that inspire can be drawn from different sectors to serve as role models.

It is one thing to agree with the need for productivity but it is much better to show what a company or a group of workers actually did to boost productivity. The conversion of buses to a one-man-operated system in 1985 is a striking example of a productivity boost from restructuring, but it is an old one.

Also useful will be more real-life accounts of how SMEs, that together provide jobs for over 60 per cent of the workforce, tapped the serious money that the Government is offering to help companies make necessary changes and cope with the costs involved. Compelling stories from the ground will help show that it is possible to survive, and thrive, amid change.

To keep things real, it should be acknowledged that strategies to raise productivity might not work in all sectors and some uncompetitive companies will close down or move out of Singapore. More ominous is the threat of some industries being hollowed out.

Amid these genuine concerns, it is worth repeating that the greater danger comes from complacency or passivity. Putting off restructuring to avoid pain is the surest way to bring it on.