This year’s annual May Day Rally 2022 at D’Marquee, Downtown East marks the return of a large group event after two years of restrictions due to the pandemic.
As we emerge from a post-pandemic world, we are not out of the woods with more challenges ahead of us. The ongoing war between Russia and Ukraine has also escalated the cost-of-living pressures due to rising energy and food prices. Hence, it has become important for businesses to transform to stay relevant and competitive.
Here are 5 important takeaways we learned from Prime Minister Lee Hsien Loong’s address.
#1 The Household Support Package And Tightened Monetary Policy Are Among The Measures Taken To Alleviate Cost-Of-Living Pressures
Mr Lee mentioned that the ongoing war between Russia (a major exporter of oil and gas) and Ukraine (among the world’s largest exporters of cereal crops and vegetable oils) has resulted in a rising cost of living not just in Singapore, but around the world.
To alleviate the cost-of-living pressures on Singaporeans, the government introduced the $560 million Household Support Package during Budget 2022. It comprises the U-Save rebates, service and conservancy charge rebates, and Community Development Council vouchers.
Furthermore, MAS has also tightened the monetary policy to reduce imported inflation. This explains the recent appreciation of the Singapore dollar against other currencies, including the Malaysian ringgit, which hit an all-time high of 3.1688 on 25 April 2022.
Additionally, Singapore is also looking to secure its own food and energy supplies to prevent any disruptions to our supplies by the ongoing war.
Read Also: Coping With Inflation In Singapore: What Can MAS Do (And At What Cost)?
#2 Global Growth Will Be Weaker, And A Recession May Occur Within The Next Two Years
There could be more economic challenges in the year ahead as inflation is expected to remain high. Global growth is expected to remain weak as central banks in developed countries begin tightening their monetary policies and raising their interest rates. There could be a recession within the next two years.
#3 Singapore Must Stay Open And Will Oppose Deglobalisation
Singapore will push back against deglobalisation that bigger nations like China has spoken about engaging in through double circulation. Unlike them, Singapore is unable to turn to a domestic market and can only rely on doing business overseas.
To become a more competitive economy, we must remain open, stay resilient, develop new capabilities, and keep on seizing new opportunities.
#4 Singapore’s Unique Tripartite Partnership Contributed To Both Our Economy And Cohesion
Singapore’s unique tripartite partnership for the conduct of labour relations has allowed it to come up with win-win solutions across many different issues over many decades.
Some of the recent policy changes that involved the tripartite partnership include the development of the Progressive Wage Model (PWM), which is now being expanded to more sectors. Another involvement by the tripartite partnership is its inputs to the new COMPASS Framework for hiring foreign professionals under employment passes (EPs). It has also worked on a long-term roadmap to raise the retirement and re-employment ages and increase CPF contribution rates for older workers.
The other major projects that the Labour movement is involved with are the upcoming workplace fairness law to protect workers against unfair treatment and the Advisory Committee on Platform Workers.
Read Also: Progressive Wage Credit Scheme (PWCS): What Businesses Need To Know
#5 Business Transformation and Upskilling Must Go Hand In Hand
Business transformation and upskilling ensure that when new jobs are created due to technology and progress, workers won’t be displaced and are equipped to take them up.
One example of a business transformation cited was that of Certact Engineering, a precision engineering firm. The firm pivoted from its main business of manufacturing metal parts for semiconductor manufacturers to doing plastics during the last two years. Certact joined NTUC’s Company Training Committee (CTC) initiative and worked closely with the Advanced Manufacturing Employee’s Union (AMEU). This enabled the company to map out its operational and technology changes required to redesign the job roles and tasks. Today, Certact’s business has doubled and is expanding its headcount.
Another example of a business transformation cited was that of Wah & Hua Pte Ltd, a waste management company. Finding it hard to employ foreigners during the pandemic, the firm invested in smart garbage trucks. It gave its drivers the designation of “truck captain”. This change of job title from “truck driver”, is the firm’s way of recognising their drivers’ skills and instilling pride in them. Another way that the company intends to refresh and make the waste management sector attractive to locals, is to build an automated waste-to-energy plant. It will make use of robots to sort the recyclables and incinerate the contaminated pieces for energy.
These are just a couple of examples of business transformation.
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