Singapore’s economy is growing — why aren’t all workers feeling it?

Singapore's economy is growing rapidly, with GDP expected to increase by 4.5 to 5.5 percent this year. The non-oil sector, particularly artificial intelligence and technology-related industries, is leading the growth. However, not all parts of the economy are experiencing the same level of growth. Economist Brian Lee of Maybank Securities Singapore noted that while headline growth is strong, it is uneven underneath.

The weaker sectors include domestic and consumer-facing industries, such as retail and food and beverage, which are affected by high rental and labor costs and cautious consumer spending. This discrepancy in growth rates, known as "K-shaped growth," could lead to a dual economy, where residents experience vastly different economic conditions based on their employment sector.

While the labor market remains resilient, if weak consumer-facing sectors continue to struggle, it could impact employment and wages. This could potentially widen the income gap between those benefitting from technological advancements and those struggling with job displacement.