Worrying decline in productivity

“A resumption of construction work for the East Coast Rail Link, Light Rail Transit 3 and other mega projects should pull productivity growth back up, starting from the third quarter this year,’’ said Pong Teng Siew, head of research, Inter-Pacific Securities.

The decline in productivity, exacerbated by the current decline in manufacturing worldwide, is causing grave concerns.

Already a problem prior to trade wars, productivity could decline further if recession sets in, possibly caused by trade and Persian Gulf conflicts.