China's new growth drivers index rises 19.5 pct in 2023

China's New Kinetic Energy Index of Economic Development, which measures the momentum of new industries, business models, and technological innovation, rose by 19.5 percent in 2023, driven by technological innovation and expanding digital economy, according to data released by the National Bureau of Statistics on Saturday.

The New Kinetic Energy Index reached 119.5 in 2023, reflecting a 19.5 percent increase over the previous year. Innovation-driven growth and the digital economy were the key contributors, highlighting the robust development in these sectors.

The innovation-driven index surged by 22.3 percent year on year in 2023, fueled by advancements in basic research and original innovation, with enterprises playing a central role.

National research and development expenditures reached 3.3 trillion yuan (over 465 billion U.S. dollars), an 8.1 percent increase, while the value of technology market contracts rose by 28.6 percent to 6.15 trillion yuan (over 867 billion U.S. dollars), underscoring the significance of technological innovation as a growth driver.

The network economy index also grew by 22.1 percent in 2023, reflecting rapid development in new business models and strong online consumer demand for upgraded goods.

Online retail sales of physical goods increased by 8.4 percent, outpacing overall retail sales by 1.2 percentage points, while e-commerce transactions grew by 9.4 percent. The consumption of information services, such as digital entertainment, also saw rapid growth. By the end of 2023, mobile internet data usage had surged by 15.2 percent, solidifying China's leadership in the digital economy.

The vitality of China's market economy was further unleashed in 2023, marked by a significant increase in the number of market entities, continuous optimization of the investment structure, and substantial progress in industrial transformation and upgrading.

The economic vitality index rose by 14.5 percent, driven by the establishment of 32.73 million new market entities -- a 12.6 percent rise -- while the number of high-tech enterprises grew to 463,000, indicating a thriving innovation landscape.

Industrial transformation and upgrading also quickened in 2023, with the transformation and upgrading index increasing by 16.3 percent. Policies aimed at stabilizing industrial operations and promoting advanced manufacturing spurred growth, particularly in green and low-carbon sectors.

High-tech manufacturing's added value accounted for 15.7 percent of those of industrial enterprises above the designated scale, while the share of non-fossil energy consumption in the overall energy consumption increased by 0.2 percentage points.

Notably, exports of electric passenger vehicles, lithium-ion batteries, and solar cells -- collectively known as the "new three" products -- reached 1.06 trillion yuan (about 150 billion U.S. dollars), a 29.9 percent growth, marking significant strides in industrial upgrading.

China's new growth drivers index rises 19.5 pct in 2023

Many Singaporeans support raising the re-employment age, partly to stay busy and active in retirement, and to help address demographic challenges in the workforce.

Like many other Asian countries, Singapore is grappling with a rapidly aging population. The government predicts that by 2030, one in four Singaporeans will be aged 65 or older, up from one in 10 two decades ago.

A survey on retirement and employment conducted last year in the country found broad support for raising the national retirement age, with about 88 percent of those aged 50 and above in favor.

Some supported increasing the retirement age because continuing to do what they love, rather than retiring, keeps them feeling youthful and fulfilled.

When Nancy Hor, a retired IT operations manager, left her job five years ago, she wasn't sure how to fill her time.

"I'm a workaholic. At the very first stage after I retired, I felt I could not find balance," she said.

Hor, now 70, said it took her some time to adjust. In her spare time, she stays busy line dancing and spending time with her family.

But she said that if she had had the choice, she would have liked to stay employed a little longer.

"I think it's good for the elderly that even they have some job to do, and keep them busy," said Hor.

In March, authorities announced plans to raise the retirement age to 64 and the re-employment age to 69 by 2026.

Singapore's Minister of State for Manpower, Gan Siow Huang, said the changes to the rules protect senior workers from dismissal due to age-related issues before they reach the statutory retirement age. Employers are also required to offer re-employment to eligible workers until they reach the statutory re-employment age limit.

This follows a similar move made two years ago to raise the retirement and re-employment ages to 63 and 68, respectively. The city-state is also aiming for a retirement age of 65 and a re-employment age of 70 by 2030.

"That is to reduce the impact on businesses, so it gives time for businesses to adapt their policy. This gradual increase in retirement age basically provides a framework for individuals like myself, who want to continue to be gainfully employed," said Patrick Chang, a retirement planning specialist and the author of the A to Z guide to retirement planning.

Chang said that businesses will need to make adjustments to accommodate the changes, including offering retraining for senior workers.

He noted that the changes won't impact those who still wish to retire earlier, but given Singapore's demographic challenges, the country cannot afford to remain idle.

"If we don't do it now, the social cost could be high. We cannot wait until the time when we need it today, and then we get something done. It will probably be a bit too late, and the cost of getting to that solution will be higher," said Chang.

Many Singaporeans support raising retirement, re-employment ages