Singapore’s plans to cut reliance on foreign workers could reduce its competitiveness and growth potential while keeping core inflation elevated, the International Monetary Fund said in a report on Saturday.
The IMF said Singapore’s plans to restructure its economy by trying to boost productivity and curb use of cheap foreign labor could eventually set the stage for a long period of sustainable growth.
“However, productivity improvements might take some time to materialize and may not fully offset the effects of declining labor force growth,” the fund said in its annual review of economic developments and policies in the country.
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