Outsourcing Creates Jobs in Singapore

The Straight Times reports the Singapore unemployment rate is expected to drop as firms restructure and outsource work, according to labour leader Lim Boon Heng.

"On the recent moves by companies such as Singapore Airlines and Singapore Airport Terminal Services (Sats) to outsource jobs, Mr Lim said that it is one outcome of a more competitive environment. The national carrier announced last week that it was outsourcing 130 information technology jobs."

Said Mr Lim: 'It's happened in other countries first, now it's catching up with us... We've seen Singapore come under more intense pressure, because many of our neighbours are doing the same things as we do, and they do so on a lower cost base, including wage cost.'

Asked whether outsourcing would worsen the umemployment rate, he said: 'No, I think the unemployment rate will actually improve in my view, because new opportunities come up for those who're looking for jobs.