Majority of Singapore residents are not choosing a career to create products for sale. They rather provide services for a living.
|GDP At 2010 Market Prices|
|Goods Producing Industries||30.2%||24.0%|
|Services Producing Industries||57.4%||67.9%|
In 2015, Singapore Gross Domestic Product (GDP) was made of 24.0% in Goods Producing Industries and 67.9% in Services Producing Industries. Back in 1980, 30.2% was in Goods Producing and 57.4% was in Services. Goods producing had declined 6.2 percentage points whilst Services producing jumped 10.5% percentage points over 35 years. There was a hollowing out of our manufacturing base in Singapore over this period.
When there is a global economic downturn, Singapore will be hit when our export of our services slows. The services sector is tied to international trade and wealth of nations. Tourism to Singapore slows during economic downturn leading to poor retail trade, food and beverage, hotel services. Services supporting goods export trade is affected too.
It is not wise that Singapore should reduce goods producing industries further in the future. In fact, we should allow more manufacturing of new products. Diversification of manufacturing capabilities is also key. Singapore should not to be stuck with few key industries such as ship-building, rig-building, oil refining where these industries are now languishing because of falling oil prices.
We would need a trained workforce that can be creative and build products that are demanded by the domestic market and the global markets. This is where entrepreneurship and risk-taking should be encouraged. We have been talking of entrepreneurship and risk-taking for the longest time. It still has yet to bear fruit.
See table below for details of both Goods Producing and Services Producing industries.
|GDP At 2010 Market Prices||391,348.5|
|Goods Producing Industries||93,746.7||24.0%|
|Other Goods Industries||140.8|
|Services Producing Industries||265,869.6||67.9%|
|Wholesale & Retail Trade||74,445.4|
|Transportation & Storage||29,907.1|
|Accommodation & Food Services||6,986.5|
|Information & Communications||15,557.0|
|Finance & Insurance||50,072.7|
|Other Services Industries||37,137.9|
|Ownership Of Dwellings||13,317.8||3.4%|
|Gross Value Added At Basic Prices||372,934.1|
|Add: Taxes On Products||18,414.4||4.7%|
Source: Singapore Department of Statistics
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