SINGAPOREANS have proven themselves to be resilient in the face of the worst financial turmoil in recent history.
However, some issues remain to be confronted:
Stagnant or regressing pay With the higher cost of capital and the expectation that a return to profitability will be slow, many companies have grown without keeping their cost base affordable over the last few years during an economic boom.
Employers will seek to reduce employee costs by freezing or cutting wages.
People who have bought big-ticket items at high prices will suffer if they have been over-optimistic in projecting their income levels.
Regulations on sale of financial products
Selling financial products is more complex than selling other kinds of products.
Many salespeople in the financial industry are great at marketing and building rapport, but do not always fully understand what they are selling.
Also, because remuneration for salespeople in financial institutions is target-based, this has led some to sell products which might not be suitable for their clients.
Regulations on the sale of such products should be reviewed.
Singapore's role as a service-driven economy
China and India are the factories of the world.
These powerhouses are operating at a cost that Singapore cannot compete with due to differences in the cost of living. Despite this, the Government has done an admirable job which others cannot duplicate. Singapore has grown to be a maritime and education hub.
Much credit has to be given to government agencies for their dynamism in keeping the island ahead of the pack.
Upgrading
Change is now a constant. The Government has rightly emphasised that skill and knowledge upgrading remains a top priority for the working population.
Education is the best way to help narrow the income gap and pull people out of poverty.
The Government has done enough to equip the people with the skills to find employment.
The question now is whether home-grown enterprises and start-ups can provide skilled workers with sufficient jobs.
Complacency
Regardless of how well the economy has done over the past few decades, Singaporeans should not be complacent.
More market leaders need to be developed and the work environment ought to encourage calculated risk-taking.
