Sep 14, 2010
S'pore businesses not pulling their weight
BROWSING through the 'Global Competitiveness Report 2010-2011' released by the World Economic Forum last Thursday, I got the impression that Singapore businesses are not pulling their weight in our high-stakes contest for global markets - which Singapore depends on heavily for its prosperity.
In the overall rankings, Singapore was placed at a commendable third, achieved arguably on the back of strong contributions from the other tripartite partners - the Singapore Government and Singapore workers.
Singapore performed well in the following key pillars in the report: institutions (1st); goods market efficiency (1st); labour market efficiency (1st); financial market development (2nd); health and primary education (3rd); infrastructure (5th); and higher education and training (5th).
These results could largely be attributed to the efforts of the Government and workers. On the other hand, Singapore companies cannot be said to have outperformed their competitors based on the following: business sophistication (15th); and innovation (9th).
By analysing the component indicators within the business sophistication and goods market efficiency pillars, the under-performance of Singapore firms becomes even more evident:
Local supplier quantity (63rd); control of international distribution (58th); local supplier quality (39th); intensity of local competition (28th); willingness to delegate authority (21st); extent of marketing (20th); degree of customer orientation (18th); extent of market dominance (14th); nature of competitive advantage (14th); and production process sophistication (14th).
Even as Singapore businesses under- performed compared with their top-ranking peers, the Singapore worker's wage and productivity have remained competitive - pay and productivity (1st).
Based on these facts, it appears that the salary of the average Singapore worker has room to grow - if only Singapore businesses raised their game.
By improving on the areas of weakness identified in the report, Singapore companies would be able to capture larger and more profitable markets globally, with resulting gains for Singapore workers and shareholders.
Han Tau Kwang
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