Issues relating to productivity

To be productive means to be able to produce more units of output in a given time, i.e. to reduce the cost of producing each unit. One can produce more by working faster, but this is likely to result in mistakes and poorer quality. It usually means to find a better way to produce the goods, while maintaining the quality of the product.

The best way to reduce cost is to eliminate waste, which adds to the total cost of productivity. There are many activities that are wasteful and costly and do not add to the value of the products, such as impractical compliance with safety, health and security. While these functions are important, they have to be examined carefully in terms of cost and usefulness, and are not to be complied blindly. Many activities in Singapore have this hidden burden of compliance, which adds to the cost of production.

If the goods are to be produced using a new method, we must be prepared to make a change. Many people are not willing to take the responsibility to make a change in Singapore. They prefer the safety of sticking to the old ways. This tendency to play safe is a negative trait of Singapore and is likely to impede our progress towards productivity.

I am not advocating that we go to the other extreme to abandon safety, health, security or to take short cuts in our production. I am asking that we must have an open mind to examine these issues. If we continue to be risk adverse, and to play safe, we will not be able to achieve th quantum leap in productivity.

Here are my views about improving productivity in Singapore.

Tan Kin Lian