ECONOMICS OF INDUSTRIAL TRAINING IN SINGAPORE

Abstract

An attempt is made in this paper to study the training market in Singapore. It is found that the training climate in Singapore is far from conducive. This is because both workers and companies encounter difficulties with training. This suggests that training markets left to themselves are unlikely to generate socially optimal levels of training. Therefore, government intervention is needed to influence the quantity and quality of skill acquisitions. The macro econometric model of the demand for training has found that the higher the proportion of workforce with secondary or below education, the lower would be the demand for training. In addition, wage growth is positively correlated with the demand for training, whereas for unemployment rate and GDP growth, a negative relationship was obtained. Despite the limited scope of this academic exercise, it is hoped that the study will shed some light on the training scene in Singapore and to create awareness in issues relating to training.