Singapore's future no longer looking great, economists say

(July 19): Good, not great: That’s increasingly the economists’ take on Singapore’s longer-term prospects, from manufacturing to underlying economic growth.

Ageing demographics and rising labour costs will weigh on the city-state, which focused on a significant manufacturing sector to support growth, economists said. Singapore stands out against a landscape of emerging Asia cities that are relying more and more on services to juice growth, according to an Oxford Economics research note released Wednesday.

“The days when Singapore’s manufacturing competitiveness was self-evidently great are long over,” according to Oxford Economics. “Singapore’s manufacturing sector faces both rising competition within the region and a risk of rising labour costs” from an ageing population and immigration restrictions.

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