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SINGAPORE: Fears of job loss due to the slowdown in the US economy are unfounded, at least for now.
This is according to economists who said the job outlook in Singapore should remain positive. They expect 230,000 new jobs to be created this year, compared to the 235,000 generated in 2007.
Industry watchers agreed that the US economy will experience what Prime Minister Lee Hsien Loong called a "U-shaped" slowdown in his May Day speech on Thursday.
This is where recovery occurs over a longer period of time, which could affect Singapore's growth.
Nonetheless, the shape of things to come is not so bleak when it comes to jobs.
Song Seng Wun, CEO & Regional Economist, CIMB-GK Research, said: "Whichever scenario turns out for this year for Singapore, we'll probably find that there's enough resilience in the local economy. You'll probably see a period of cautious confidence among businesses and households."
Economists believe the full impact of the US slowdown on jobs will become more apparent in the second half of 2009.
For this year, they expect job creation to remain fairly healthy, driven by demand in the services industry, as well as in the technology and pharmaceutical sectors.
Small- and medium-sized companies are also unlikely to cut jobs significantly any time soon, even though the US slowdown has affected some manufacturers or traders dealing in US dollars.
Kurt Wee, Vice President, Awards & Projects, Association of Small & Medium Enterprises, said: "You may think that by the fourth quarter, you'd need to cut back.
"But just when you are about to start your cut-back exercise, all the new industries in Singapore – the integrated resorts, the Formula One and the infrastructural projects – are going to start kicking in and then you may realise that you actually don't need to cut back. It's a very fluid situation."
The association said companies should seek new markets abroad in order to remain sustainable in the long term.
- CNA/so
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