Singapore eyes higher value-added business processing jobs

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Singapore eyes higher value-added business processing jobs
By Chua Chin Chye, Channel NewsAsia

SINGAPORE: Trade and Industry Minister George Yeo says Singapore is targeting the higher value-added jobs, in the global outsourcing market even as the Republic is losing lower-end jobs to low-cost countries.

He was replying in Parliament to MP Dr Amy Khor, who asked how Singapore's economy and jobs were being affected by this business process outsourcing trend.

Mr Yeo said: "While we cannot stop some lower-end processes in Singapore from being outsourced to lower end destinations, we should compete to attract higher value added business processes here. This includes activities such as risk management, disaster recovery, content development, design and engineering."

He noted that such businesses require a stable political environment, good public administration, human capital, technology and infrastructure.

If Singapore can capture just a tiny percentage of global business process outsourcing market, it will create many good jobs in the Republic.

Quoting a Gartner report, Mr Yeo said this market was worth US$120 billion last year - and growing rapidly.

India has captured two-thirds of this market, trailed by China, Malaysia, the Philippines and Singapore.

As for the current backlash against outsourcing, Mr Yeo believes competitive pressures will eventually force governments to stay the course.

Even then, free trade agreements offer a line of defence.

"Our FTAs also provide some protection against protectionist pressures in other countries. For example, even if the US were to legislate against the outsourcing of government work to foreign countries, under the US-Singapore free trade agreement, companies with a substantial presence in Singapore will still be eligible for such work," the Minister added. - CNA