ANNUAL JOB CREATION

Mr Ang Nam Piau asked the Minister for Finance how many jobs need to be created annually for the next five years and how many of these will be in the Civil Service.

The Senior Minister of State for Finance (Mr Goh Chok Tong) (for the Minister for Finance): Mr Speaker, Sir, over the next five years, it is expected that there will be an average of about 53,000 persons joining the labour force each year. With retirements, deaths and other withdrawals from the labour force are deducted, the net annual increase will be about 26,000 persons per year. To create enough new jobs for this annual increment in the labour force, our GDP will have to grow at between 6-8% annually. While for this year we are likely to achieve this, the prospects for doing so will be uncertain in future. Our economic fortunes are tied to those of the industrialised countries on whom we depend for export markets. Recovery in the world economy has been slow as major industrialised countries fear the resurgence of inflation, if economic recovery is too rapid. In addition, there are growing tendencies in the world towards protectionism which will affect our exports. Our status as a developing country is also being questioned. In the light of those problems, our workers and especially the new entrants to the labour force, must be more productive, more flexible, less choosy, and less inclined towards job-hopping if we are to be able to compete effectively in international markets and therefore achieve our growth targets.

The bulk of new jobs in the next five years will have to be created in the private sector - in manufacturing, transport, storage and communications, as well as in the other services sector. For the Civil Service over the next five years, the emphasis will be towards increasing the efficiency of existing staff through better supervision, redeployment, and mechanisation of systems and procedures. Increases in the Government wage bill must be matched by increases in productivity. With an existing establishment vacancy of more than 9,000 persons at present, it is not envisaged that many more new posts will be created in the next five years. There will be stringent control on increases in manpower. New posts will only be created if they are fully justified on the basis of new functions in connection with new development projects, new legislation or reorganisation.

Dr Augustine Tan: A supplementary question, Sir. If it is true, as the Hon. Senior Minister of State puts it, that there will be increasing protectionism and a slow-down in the growth of the advanced countries, how would he propose to increase manufacturing, presumably for export, to provide the jobs?

Mr Goh Chok Tong: Mr Speaker, Sir, that is one of the problems to be faced by our economy. We would have to identify industries with higher technological content. We would have to promote such industries to come into Singapore.

Dr Augustine Tan: Mr Speaker, Sir, if the economic growth rate of Singapore goes down, below 6-8%, the job market for university graduates will be limited. Has the Senior Minister of State for Finance considered raising the educational qualifications for jobs which now require lower educational qualifications?

Mr Goh Chok Tong: Mr Speaker, Sir, if the problem is finding jobs for graduates with higher qualifications, then obviously we have to look for jobs that would be suitable for people with the right level of education. It may not be necessary for us to raise qualifications in order to solve the problem.