Singapore's productivity drops a further 2% in 1H13

Surprisingly, there's something good about it.

According to DBS, Singapore has embarked on a restructuring path initiated by the Economic Strategies Committee (ESC) in 2010. The objective is to enhance productivity and to foster inclusive growth. 

This is the fourth year of the restructuring. So far, measured productivity has languished. The change in productivity has averaged -0.6% per annum in 2011-12 and has dipped further to -2.0% in 1H13.

Here's more from DBS:

This is a far cry from the original target of 2%-3% set by the ESC. Is restructuring working?

The answer is yes, restructuring is raising productivity and real incomes. Firstly, the average number of hours worked per employee has been fairly stable. At about 46 hours per week, that’s amongst the highest in the world. 

It may seem difficult to reconcile the persistent contraction in productivity growth when the average number of hours clocked by workers here has remained the same for more than a decade.