Sharp drop in SME productivity: Poll
PRODUCTIVITY has declined sharply among
small and medium-sized enterprises (SMEs), with all sectors
registering lower levels of output.
The information and communications sector, which includes
publishers and media companies, led the losers last year, falling a
jaw-dropping 70.6 per cent for each worker the companies had on
their payrolls, compared with the figure in 2007.
In fact, all other sectors saw lower numbers, with profits
falling by between 25 per cent and 35.7 per cent per worker.
These startling figures were revealed in a survey of SMEs
released by DP Information Group yesterday. The study used several
indexes to measure productivity levels, an area that has been
flagged by the Government as a growing and serious concern.
One set of indexes used was a measure of sales generated for
each worker on a company’s books. The commerce sector, which
includes trading and import/export businesses, grew 11 per cent,
but all other sectors saw steep productivity falls of between 18.4
per cent and 41 per cent.
Spring Singapore assistant chief executive Choy Sauw Kook said
at the survey’s launch that part of the reason for the dismal
figures was the Jobs Credit scheme, which had propped up employment
figures. ‘Jobs Credit was aimed at keeping jobs and not really at
profit levels. So we should not read too much into the figures,’
she said.
Likewise, DP Info managing director Chen Yew Nah said the
comparison between last year’s figures and 2007’s may not have been
ideal. This was because 2007 was still a pre-recession period, or a
good year, while last year saw the worst of the downturn.