SINGAPORE, April 30 — While Singapore can be "cautiously optimistic” about its immediate economic prospects as it emerges from the Covid-19 pandemic, Prime Minister Lee Hsien Loong has warned that the external environment remains "volatile” and "fraught with serious geopolitical tensions”.

In his May Day message, released today, Lee highlighted how Singapore’s gross domestic product grew 3.6 per cent last year, while adding that the economy is continuing to recover.

Sectors hard-hit by Covid-19, such as tourism and hospitality establishments, are also "back in business”, he added.

Passenger traffic at Changi Airport has reached around 80 per cent of pre-pandemic levels, and will rise further as international connectivity is progressively restored, he said.

"Meanwhile, unemployment rates have stayed low, and retrenchment numbers remain manageable,” said Lee. "Overall, we can be cautiously optimistic about our immediate economic prospects.”

Still, in light of the external headwinds Singapore will face, Lee pledged that the Government "will continue to do its best to support Singaporeans”.

This will mean doing more to professionalise skilled trades to "create more pathways to success”, and to improve career planning support for Singaporeans.

Said Lee: "The Forward Singapore exercise is discussing these issues, including how to help Singaporeans improve their work prospects and resilience, and transition to new jobs and careers.”

All these efforts, he said, will require "strong collaboration among the tripartite partners” — the Ministry of Manpower, National Trades Union Congress and Singapore National Employers Federation.

Adapting to survive

Beyond Singapore, Lee said there is a risk of recessions in Western countries, as central banks continue raising interest rates to dampen inflation.

The multilateral trading system, he said, is being progressively undermined by growing nationalist and protectionist sentiment, affecting international trade and co-operation.

He also said that emerging industries such as in the green and digital domains, and new technologies such as artificial intelligence, will disrupt economies around the world.

"We must respond to these broader trends by adapting to them, while doing all we can to buffer those adversely affected,” said Lee.

"Singapore’s survival depends on us staying open and doing business with the world.”

This means continually transforming Singapore’s industries, enhancing existing capabilities and building new ones as the nation moves into growth markets.

Said Lee: "This will cause disruptions to some existing jobs, but at the same time it will create new jobs with better prospects for the future.”

Nevertheless, the prime minister said he was glad to see many workers upgrading themselves and seizing new opportunities.

Employers, too, he added, are making efforts to "maximise the potential of their workforce” by implementing flexible arrangements and redesigning jobs for older workers, among other methods.

All these measures, he said, help to improve productivity, and retain talent.

"As we move ahead in this difficult environment, let us reaffirm and nurture the spirit of tripartism,” said Lee.

"With each of us doing our part and all of us working together, I am confident that we will secure a brighter future for Singapore and Singaporeans.” — TODAY