Aug 5, 2009

'A reality check'

SEAGATE'S decision to lay off 2,000 workers at its hard-disk plant is a stark reminder to Singaporeans that 'we must not be prematurely optimistic' about an economic recovery, said Manpower Minister Gan Kim Yong on Wednesday.

But at the same time, Singaporeans need not be disheartened by the news, he added, pointing to 25,000 job openings yet to be filled and the hiring blitz by the two integrated resorts in the coming months.

Mr Gan's comments come 24 hours after the American multinational announced that 2,000 workers will be retrenched by the end of next year when its Ang Mo Kio plant is closed.

Its decision shows there are still economic challenges to be tackled despite some signs of recovery, the minister told reporters after a ceremony at Singapore Technologies Aerospace to mark National Day, which falls on Sunday.

Latest official figures show that the economy expanded for the first time in a year when it grew by 20.4 per cent in the second quarter over the previous quarter.

The improvement led the Government to raise its growth forecast this year from a contraction of 6 per cent to 9 per cent, to a contraction of 4 per cent to 6 per cent.

But Mr Gan warned against being blinded by the new ray of hope.

'It's important for us to continue to work together, for the Government, employers, unions and workers to press on with the various measures that have been put in place.'

Among them are the Jobs Credit wage subsidy scheme and the Skills Programme for Upgrading and Resilience (Spur), which subsidises training.

The Seagate announcement came amid repeated warnings from the labour movement about a possible second wave of retrenchments later this year.

- The Straits Times

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