Tan Kin Lian

For many years, the Government has advocated a pro-business environment in Singapore. This is aimed at attracting foreign investors to set up businesses here and create more jobs for Singaporeans.

This strategy has been successful. Singapore has received many international awards for being a competitive economy and a world class workforce.

A hard working, well educated, productive and co-operative workforce is an important contributor to this pro-business environment. This strategy has also benefited many Singaporeans. They have the opportunity to get good jobs at high wages. Many multi-national companies set up their operations in Singapore to serve the Asian region. The demand for talent and for professions in accounting, legal, marketing, business development and other services have contributed to this happy situation.

To cope with the shortage of talent, Singapore has an open door policy to attract professionals and foreign talents to work in Singapore.

Depressed Wages

The open door cannot be restricted only for the talents that are scarce in Singapore. In any case, this type of people has not been defined clearly.

In practice, the open door policy has also been applied to other sectors of the labour force. The demand for workers willing to work for competitive wages extends down the skill ladder.

Although there are controls to ensure a balance of local and foreign workers, they have been difficult to apply in practice. As a consequence, we have an abundance of low wage workers in Singapore. The actual number has not been published. If we look at the people who do not speak like Singaporeans working in the heartlands and in the factories, one can conclude that there must be a large number.

One unfortunate consequence of this influx of foreign workers is the large number of local “mature” workers above 40 years who are unemployed.

Choosy Workers

A common explanation for the large number of unemployed workers is that they are “choosy”. They are not willing to do certain types of outdoor work, especially if they are risky or dirty.

I suspect that it is a question of adequate wages. If the jobs now shunned by Singaporeans pay adequate wages, I believe that many Singaporeans will be willing to do the work.

I have spoken to many taxi drivers who are willing to work 12 hours a day just to earn $2,000 to feed a family.

There are many older Singaporeans who earn less than $800 a month as cleaners or security guards. They have no choice. They have to work or face starvation. Singapore does not provide any welfare.

I do not consider Singaporeans to be “choosy”.

Foreign workers

Employers will prefer to bring in foreign workers, as they are willing to accept any job and work for a low wage, so long as they earn enough to feed a family in their home country, where the cost of living is much lower than Singapore’s. They are usually provided with accommodation near their place of work and can save on the high accommodation and commuting cost.

In contrast, a Singaporean has to earn enough to feed a family in Singapore, with its high cost and standard of living. He has a family and social life in Singapore, he cannot live in a dormitory near his place of work. He has to incur high accommodation and travel costs.

Outsourcing

For many years, the public sector has been a source of employment for many lower educated workers in our society. They work as cleaners and provide a wide range of services in our hospitals, airports and other public services.

They earn a low wage, but it is adequate to feed a family. They are represented by the public sector’s trade unions, which look after their interests.

In recent years, many of these jobs have been outsourced to the private sector. Instead of employing the direct workers, the government agencies have reorganised the work and retrenched the direct workers. They outsource the work to private contractors, to reduce their cost of operation.

A contractor has to submit a low price to win the tender on a contract. The contractors re-employ the retrenched workers at lower wages, to do the same work that they did previously as direct workers. If the local workers are “choosy”, the contractor can find foreign workers willing to work for less.

The contract is for a term of two or three years. On the renewal of the contract, the contract price is likely to reduce further, due to competition. This means even lower wages for the local contract workers.

Adequate salaries

I believe that local workers deserve to have an adequate salary for a hard day’s work. This salary has to be commensurate with the cost of living. It should be adequate for a worker to feed a family, at least in a frugal way. The worker should not be expected to work for 12 hours a day, and still not earn enough for the family.

In some countries, this is achieved through a “minimum wage”. Even America, which is the strongest proponent of a free market economy and a flexible labour force, finds it necessary to have a minimum wage.

Business has to be competitive

It has been argued that competitive wages and a flexible labour market are necessary for business to remain competitive and to stay in Singapore. This argument has been pushed too hard by our leaders. Many Singaporeans accept this argument quite blindly.

Does it really help the country much for the public sector to save a few million dollars a year, by depressing the earnings of the contract workers who were previously the direct workers of the agencies?

If businesses have to pay a more adequate wage to the low income workers, will the businesses become non-viable? I do not think so.

These businesses can reduce the exorbitant earnings of their top directors and managers, or spend less on lavish offices or other business expenses. These businesses may earn less for shareholders, but will probably still find it quite attractive to remain in Singapore.

Pride to be a Singaporean

I believe that more people will be proud to be Singaporean, if they find that the nation looks after their interests and is willing to give them a fair standard of living for a hard day’s work. I hope that the wages of the lower income workers can be increased. This is even more pressing in 2008, due to the high inflation rate.

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106 Responses to “Give adequate wages to low income workers”

  1. Sgcynic 25 June 2008

    I’m sorry that it happened – that Singaporeans are too choosy and not willing to serve the country, not even for the million dollar salaries being dangled. On second thought, I’m even more concerned that they serve because of the million dollar salary…

  2. Observer 25 June 2008

    Kin Lian,

    I have a question for you. Is Singapore classified as a free economy state?

    Unless Singaorean resort to protectionism, FT is not the main cause of the problem. You should compare our nearest competitor HK (more realistic as both do not have natural resources and only human resources except Hong Kong has the backing of Greater China). Thus making Singapore harder to compete for FDI that help spur the economic growth and sustain the employment situtation. Have you ever heard a lot of disgruntle about FT in HK? The HK government has constantly do public advertisement to encourage its citizens to upgrade their skillset to be competitive. They have also provided a lot of subsidies for skillset upgrading education. I think Singapore has more (correct me if I am wrong). There are a lot of influx of FT in HK as well. Oh, by the way, there are no minimum wage law in HK (it is still tabled as a legislative debate without any results). No defined maximum work week in a broad spectrum. Live goes on.

    So, in Singapore, It’s our very own fellow citizens who needs to reflect as well. There are no shortage of available job vaccancies. In fact the unemployment rate is higher in HK compared to Singapore. Likewise the living standards and operational cost are higher in HK compared to Singapore. The HKer take it in stride and work it out as they strive for improvement and government aide concurrently. No nannying.

    Be fair, it is ugly to hear but the competitive landscape has changed. It is not just the government’s responsibilities. Yes, the government can do more but the citizens too have to play their role. You are of the idea that the top earners should shed their salaries to compensate the low-wage worker, so why the need of a merit system? Why not adopt like old China used to be. Why not compare to Vietnam, Thailand, Phillipines, Indonesia or even Malaysia. This is reality of life.

    You know better as you have been in a CEO position. Being compassionate is one thing. In the ugly business competitive landscape, compassion is low in priority. If the country has adopted a capitalist type of business environment, it needs to maintain its free economy status and invariably you will face a higher degree of competitiveness in every aspect of business. Yes, the lower income wage earner is at the bottom ladder, wages is important but upgrading skillset will have more effect to move them up the bottom ladder and make them more competitive to survive in reality. Again, the lower income wage earner has to play a role as well.

    Singapore is not the only country facing the current inflation issue. The whole world is scrambling to tackle this issue as well. As a matter of fact as I see it now, Singapore Gov is doing much more compared to Hong Kong to help its citizen to combat this current inflationary issues. I lived and worked in HK for 9 odd years now and this is what I am experiencing as I pen my comment.

    No intent of questioning your compassion to aide the needy people. I think most if not all of us share this sentiment. However, in reality of life and its current comeptitive landscape,we have to learn how to face it and take it in stride. The higher the wage, the higher the operational cost and so on. It is a vicious cycle. If the lower income earner skillset is stagnated, it will certainly be replaced without a doubt. There are no shortage of lower income workers outside of Singapore. Likewise this is also happening to the other higher paid professionals.

    Let’s face it, If Singapore adopt a confined closed market strategy, we will die much faster. Skillset upgrading is key to survival and to climb that laddle. But I do not believe in the blame game.

  3. On the topic, isn’t the WIS the scheme the goverment has put in place to tackle this problem? It’s less economically disruptive than minimum wages or subsidies, but it fulfills the same role of ensuring wages are at a decent level. I’m not sure about the details, but it sounds like it would work in principle, and so the problems should emerge at a level of implementation? Maybe we should focus on that.

  4. Tan Kin Lian 25 June 2008

    Hi Observer

    Perhap, you should tell us about your identity and background. I find this approach to be fair, if you raise the issue of my past work position.

    I am not too familiar with the situation in Hong Kong. If I remember correctly, they do provide some unemployment benefit to people who are not able to find suitable job. Maybe, you can confirm this situation.

    I have observed that many FDI (foreign direct investments) come into Singapore and have to depend on a supply of low cost workers from other countrie, to make the business viable. This helps to make good profit for the investors and high salarie for the top managers. I am not clear how this type of FDI benefit the citizens as a whole. They make life more congested in Singapore.

    I hope that someone can help me to identify the countries that have a minimum wage, besides Europe and America.

    We must also bear in mind that the cost of living in some of the less developed countries are much lower than in Singapore.

  5. Hong Kong good 25 June 2008

    Observer on June 25th, 2008 11.22 am

    “I think most if not all of us share this sentiment. However, in reality of life and its current comeptitive landscape,we have to learn how to face it and take it in stride. The higher the wage, the higher the operational cost and so on. It is a vicious cycle.”

    Hong Kong has their own unique environment & the accompanying inherent cost structure. Likewise for Singapore. The level of freer market practice in Hong Kong is higher than Singapore in which case our govt has a hand in a lot of so-called commercial enterprises (e.g GLC) and on top of it the level of official direct / indrect taxation.

    While I do not have the benefits of working in Hong Kong, crude simple deduction will tell you that Hong Kong has to pay a much higher commercial private costs than official governement taxation (either directly / indirectly) while in Singapore the proportion is skewed towards the latter.

    What say you in your statement “It’s our very own fellow citizens who needs to reflect as well.”. I believe that a lot of good decent Singaporeans know how to reflect and know where to deflect our unhappiness when necessary.

  6. Sgcynic 25 June 2008

    Let’s face it. The poor folks must learn how to face it and take it in stride. Learn to see things in [government's] perspective. Do not believe in the blame game. It’s not the government’s fault.

  7. Andrew Loh 25 June 2008

    Hi Kin Lian,

    Just wondering: Do you think that an independent workers’ union would make any difference in terms of helping the low income up their wages?

  8. Mun Kit 25 June 2008

    Hi Andrew,

    Are u suggesting something like what the airline pilots have as comparison? If it drags MM into the meetings, I would say that it would make a difference.

  9. Think cat 25 June 2008

    Observer on June 25th, 2008 11.22 am

    “The higher the wage, the higher the operational cost and so on. It is a vicious cycle.”

    The poor need to have low pay to stay competitive.
    The rich (especially our fat cats) need to have high pay in order to stay talented & to contribute.

    No prize for being able to spot the dichotomy.

  10. Just like how the Govt will ask how much is an adequate payout for something like the CPF Life payout,

    the question will eventually come down to what exactly is an adequate wage.

    I am in favour of a minimum wage but the Govt will point to the workfare to highlight that a minimum wage is not necessary.

    The Govt has already implemented workfare supplements which would provide top-ups for those with lower wages (below $1.5k pm) so I think the focus should be on whether such top-ups are sufficient or whether the criteria is too restrictive that people fall through the cracks.

    I have 2 suggestions/concerns:

    (i) That the Govt pay out an additional amount for older low wage workers with no dependents (they probably need more money).
    (ii) how long will the existing WIS scheme continue… it doesn’t help if it gets terminated after a few years….

  11. reflectionist 25 June 2008

    IMO, the problem is not the influx of foreign workers. It’s the nature of job they are in. How many locals prefer to work as a construction worker or maid or for that matter as bus drivers (recently hearing about bus drivers taking wrong routes)?

    Gov policy encourages the FDI and the companies need cheap labor for manufacturing industries, cheap knowledge workers. If not what is the USP of Singapore as a business destination?

    For the people who commented that our country is getting crowded, what if we sent back all the maids, workers and immigrants back to their states? Yes it’ll reduce the population and we can have free MRT’s, Buses and walkways. but wait can we guarantee MRT will run the same no of services, they will go and reduce the number to be profitable

  12. Also, I think job-seekers (those unemployed) should be educated to take into account Workfare payments when considering wages. Although wages may be lower than expected, workfare supplements may make such jobs more worthwhile.

    Perhaps the Government/WDA should also hold seminars for the unemployed on workfare so that they have a better idea….

  13. Andrew Loh 25 June 2008

    Mun Kit,

    Ya, maybe something like the pilots union. Thing is, this so-called tri-partite relationship between the unions, govt and employers are viewed with suspicions. I mean, I don’t see NTUC doing much except to keep repeating skills-upgrade. If we’re expected to work till 82, or as Lim Boon Heng once said, we shouldn’t even think about retirement, how the hell do you expect our elderly to keep upgrading their skills?

    Even someone with resources such as MM Lee has said so often that he himself cannot do day to day job anymore and that he is more of a ‘data bank’. If he can’t do it – with all his resources – why do they expect the ordinary people to be able to?

    Kin Lian,

    I love this statement you made in the article:

    The worker should not be expected to work for 12 hours a day, and still not earn enough for the family.

    I think this is the gist of it. Why is it that with S’pore being the most competitive economy in the world, with best business practices, highest savings rate and so on, why is it that there are people who still struggle?

    I am not talking of people who may be lazybums, but people who put in 12, 15 hours, even do two jobs! Why are they still not able to live a decent life void of worries?

    Perhaps what needs to be seriously considered is minimum wage.

    The govt has put scorn on this but really, if we do not even give S’poreans the dignity of a minimum wage, the problem will never go away. But at least with a minimum wage, the basic level of decent living can be had by all.

  14. Tan Kin Lian 25 June 2008

    Observer says,

    I have a question for you. Is Singapore classified as a free economy state?

    Here is my answer. Singapore is a free economy, like America.

    Why does America have a minimum wage? The Americans are compassionate people. They know that the low wage workers have weak bargaining power, and can be exploited by employers. Their politicians decide that a minimum wage policy is necessary to ensure that these workers get an adequate wage to have a decent standard of living.

    The Americans are proud of their country. I hope that Singaporeans, at all levels, can also be proud of our country.

  15. Tan Kin Lian 25 June 2008

    I met a traiinng counsultant. He worked with Government organisations.

    He told me that the Tovernment employees at the lower levels are disengaged. They are not interested in their work. They are forced to meet higher KPIs (key performance indicators) but are not recognised or rewarded for their effort. Their seniors take the credit.

    This disengaged attitude is the reason for the lapses seen in the Mas Selamat case, and other high profile incidents. If people are proud of their work, they will be more diligent.

    He is quite worred about this unhealthy trend. I hope that the actual situation is much better than he had described to me.

  16. Tan Kin Lian 25 June 2008

    Observer said that Hong Kong does not have a minimum wage, so Singapore should continue our policy of “no minimum wage” to remain competitive.

    I recall that Hong Kong provide some unemployment benefits, but I am technically wrong. It is not called unemployment benefit, but by another name – social security assistance. And it is quite adequate.

    There is no need for someone in Hong Kong to accept a job with long hours and inadequate wage, as they can get a reasonable amount of social security assurance.

    Here are some details taken from a paper posted in the Internet. The paper was written in the year 2000. I hope that the facts are still valid today. Perhaps Observer, who lives in Hong Kong for nine years, can help to verify the latest facts.

    ————————————————————————————–

    1. Hong Kong does not have an unemployment insurance system or an
    unemployment assistance system. The reason why the Administration does
    not support the establishment of an unemployment assistance system is that in
    its opinion, what the unemployed need is a job rather than a cash hand-out.
    Even if the unemployed cannot find a job for some time, they may still resort to
    Comprehensive Social Security Assistance (CSSA) for relieving the financial
    hardship brought about by unemployment.

    2. The types of assistance offered under the CSSA Scheme include standard rates, supplements and special grants. An unemployed person may receive an
    assistance comprising standard rates and special grants. The maximum and
    minimum monthly standard rates payable are $1,965 and $1,290 respectively.
    Special grants include payments to cover rent, water charges, school fees, child
    care centre fees and burial expenses. The total amount of payment under these
    two items is estimated to be about $2,520. If the unemployed person is a
    member of a four-member CSSA household, it is estimated that his family can
    receive a monthly payment of $9,450. This figure is equivalent to 55.6% of
    the median monthly domestic household income and is slightly lower than the
    average monthly expenditure of non-CSSA households in the lowest 25%
    expenditure group.

    3. To qualify for assistance, an unemployed person must have been a Hong Kong resident for at least one year, have resided in Hong Kong for at least 44 weeks, have passed the means test and have been actively seeking employment. Under normal circumstance, the Administration will complete the verification and authorization procedures within four weeks and CSSA payments will be given out within two working days. For urgent cases where there is a genuine need while authorization procedures are still underway, the Administration may provide cash assistance on the same day when the application is received.

    4. The entitlement to CSSA is not subject to any time limit. Recipients may
    continue to make applications if their financial difficulties persist.

    5. In addition to providing a safety net through the CSSA Scheme for persons who
    are financially vulnerable due to unemployment, the Administration has
    launched the Support for Self-reliance Scheme since 1 June 1999 to assist
    unemployed CSSA recipients to regain employment.

    6. Through 52 training bodies, the Employees Retraining Board (ERB) provides
    retraining and employment services to the unemployed. Unemployed persons
    can enrol in full-time retraining courses provided by ERB. All full-time
    courses are free of charge. Retrainees attending full-time courses with
    duration above one week can receive a retraining allowance amounting to a
    maximum of $4,000 per month.

  17. Hi Kin Lian

    Singapore has unemployment assistance called work support…

    http://www.mcys.gov.sg/web/serv_E_WS.html

    Its not normally advertised for reasons one can guess…

    For those who are long-term unemployed due to disability, old age etc, then the PA scheme applies.

    http://www.mcys.gov.sg/web/serv_E_PA.html

    I like to think we Singaporeans do have a heart and its not a total “no safety net” policy as some people like to create the impression…. The issue of low payouts under the PA scheme has been highlighted several times though…. The rates under the PA is abysmal…

    Best Regards

  18. Observer 25 June 2008

    Kin Lian,

    You were a public servant in a prominent position and your profile is featured in your ex-company and in TOC. You have done good deeds during your tenure and you are not foreign to posters here. Don’t worry a bit, I am not your enemy out to get you. neither am I a PAP supporter or Opposition supporter as I had candidly pen my comments in other article. If you need more, does “Rxx Daring” strike a core with you? So we are not that far apart in terms of age. Let’s not go down to that route. I also do not mind telling you that I had the privilege to work and live in the US for over 5 years and spent a couple of years working and living in Thailand as well. Used to travel extensively in the Greater China, Europe and Asia region due to my job nature as a Business Consultant.

    I am no politician. Just an ordinary Joe. I do not support welfare state even at my senile age where I stand to benefit most as I find it is subject to abuse and even will sprout more social problems in the long run. Its effect is already widely known and surfacing in Hong Kong. Who’s paying all this? The Tax Payer. And to HongKong good, you are mistaken, you pay higher income tax and higher corporate tax in HK. Basically, I am trying to be a realist and pragmatic about situational issues. My comments are just looking it from my perspective and based on what I had experience elsewhere. You can disagree or agree. It is perfectly alright. That is what I hope most our Government someday will finally release its grip on. Allowing us Singaporean to freely agree and disagree and respect each others view without the fine prints.

    Yes, the lower-income earners needed help, no doubt about it and there are better ways other than handouts. Honestly, I need help too if factor in my entire household income. I even have problem securing my retirement but hey, I just have to face it and work it out. For one good reason, shake off that stigma of being labeled living in a nanny state. Isn’t what most Singaporeans wanted and yearning to have all this while? This is way before even internet and TOC existed.

    But is setting minimum wage really effective in Singapore? I rather the government channel its energy to combat and contain the inflation and provide better affordable public transportation and housing which are the very basic necessities. Provide more affordable avenues for people to upgrade their skill-sets.

    You need to look at the competitive landscape around you. Can Singapore afford to be selective? What really is sustaining Singapore economy? It is not just crude simple deduction as what HongKong good deduced it to be. We are not Hong Kong where there is a Greater China to back them up when really needed. Even with that, Hong Kong is facing stiff competition up north for a big slice of the pie. If it wasn’t China’s generosity, Hong Kong would never have recovered from the SARs period and they knew it well. That is why the debate yielded no results on minimum wage setting in Hong Kong. Not even a law to stipulate an employee cannot work more than a certain hours.

    This is one comment that my foreign friends particularly those in US and HK always tease Singaporeans. “You people are living in a nanny state. I don’t think majority of you can survive when you leave your cocoon”. How bad does that hurt? A great deal might I say albeit I knew they do not consider me a Singaporean.

    We can unleash our suppressed anger in all sorts of direction and demand change. Yet, just take a look at all the articles and comments posted. Majority of them will fall back to wanting the government to regulate this, control that. Come on.

    My personal yard stick test to gauge the maturity state of people in common. Call it arrogant but you can’t deny the fact. Just take the Human Rights issues that were so hotly debated. So any sane mind would expect a bit of a sharing within and outside of this blog and certainly will expect a bigger turn out of votes in the poll on the importance of Human Rights, courtesy of TOC. Right? No? The end result of the poll was a pittance 163 total votes. How pathetic can that be? How on earth are we going to make a point when there is no sense of unity? Real reflective of common Singaporean mindset? Sad is the word.

    I am by no means a critique nor do I hope to create any influence of anything. But I can honestly say that I tend to look at things in an impartial manner as this is required in my professional trade. Yes, it is cruelty to see the ugly side of the issues, but it is real. It is a reality that you can’t run away from. So, we just have to face it on our own. That is why I admire Hong Kong people in general. They are fighters. We can be better.

  19. Tan Kin Lian 25 June 2008

    Hi Lim

    I hope that our workfare income supplement and public assistance scheme can be improved to match the level in Hong Kong and that they are made easier for the recipients to understand how to qualify for the assistance.

    I find that many of our help schemes are so complicated that it needs a highly paid specialist to explain how to claim a small sum of money.

  20. Think cat 25 June 2008

    reflectionist on June 25th, 2008 2.21 pm

    Who are you trying to kid boy (or girl).

    Who is complaining about traditional sources of foreign workers (construction workers & maids). They have been here all along.

    The economic structure has changed – manufacturing firms are slowly relocating. Plus our building industry has matured also (whyelse the so called Integrated Resorts). Please do not tell me that it was in the pipeline long before that.

    Imagine the numbers of workers that are left around floating when the above happened plus the influx of other groups of FWs, not those real FTs who are here to create actual incremental jobs for everyone including our own Singaporeans.

    On the one hand, you want cheap labour for FDI. On the other hand, people need to pay high minimum basic personal costs / expenses (e.g high rental, food prices, transportation cost, utilities, want people to give birth and the inherent cost of bringing up a kid, tuition that cannot be done without for those slow learners to bridge our so called teach-less-learn-more concept, and whatever rubbish) in order to survive.

    While our fat cats know how to design a “perfect” system to take care of themselves, they will explain nicely to us on how much we must be independent and not hold this clutch mentality – so that they can enjoy their juicy fruits without any disturbance.

  21. Jackson 25 June 2008

    I don’t think Singaporeans are choosy. In fact, in our own country doing the same job as the foreigners nevertheless we still deserve higher wages simply because we’re Singaporeans. Govt represent Singaporeans, do they?

  22. Kin Lian,

    I agree that some schemes may be too complicated and I noted you said before in a public forum (although the exact wordings may differ) that if one intends to help, then one shouldn’t set pre-conditions.

    I think to be fair, social security assistance schemes in many countries aren’t that easy to navigate either. Even HK can be cited as an example…

    http://www.gov.hk/en/residents/housing/socialservices/index.htm

    HK’s numbers should also be cited with care since the exchange rate is HK$5 : S$1. Their numbers look big but when considering cost of living vs SG, I’m not so sure they’re giving as much as we think they are.

    Workfare at least is an automated system (for those with CPF contributions) so issues about claims isn’t as much of a problem.

    Best Regards

  23. Brian Lin 25 June 2008

    As I know, Hong Kong has min. wage for some sectors.
    I first learn it from my Filipino maid, I verify it from internet,
    and find she is right:
    According to this official website, maid min. wage is HK$3480,
    (about S$680)
    http://www.asiawell.com.hk/employer/asiawell_faq.htm

    I do not know much about Hong Kong, as I have only been
    there a few days as a tourist.

    But I think Hong Kong is not a perfect role model for Singapore
    to follow, bear in mind Hong Kong is not a fully democractic
    society. Among the 60 MPs, only 24 are elected, 36 are appointed
    by the Beijing, most of these are very rich businessmen,
    that’s why Hong Kong has so many pro-business policies.

  24. Brian, you are right. HK has a minimum wage for foreign domestic workers (and no one else). They have been trying to extend this to the rest of the workers for many many years and it has not happened yet.

    Ironically, the min wage for maids has actually been gradually cut since a few years back and maids have been protesting in HK over this. At one time, Philippines even threatened to pull out its maids from HK due to this issue.

    Interestingly, rather than a minimum wage, HK is now looking at implementing a workfare system instead (singapore style).

    http://www.radioaustralia.net.au/programguide/stories/200806/s2273232.htm

  25. Observer 25 June 2008

    @Brian,

    You are right. It does not applies to Hong Kong people. Maids are FT. They are nicer to their maids here. The maid get a day off each week its a mandate. You are right again on pro-business policies. High value property is one of their key strategy. You should go further and look at their public housing policies.

    Kin Lian is right too on Social Security handouts (some HK1.74K per person something around there, lost count already). But its a pittance amount and it has been abused (not by real locals but immigrants from China). It goes by head-count. Get it? They also have senior citizens aiding package (now fighting to get it up to HK3K a month each). Their Public Primary to Secondary schools’ tuitions are completely free to Citizens. However, the textbook are not free (and that’s where publishing companies reap their profit from ~ one trick is make small amendments to newly approved published text book ). Oh, there are jobs that pay HK3K a month or less. Hourly pay working in McD, Supermarkets goes as low as HK17 an hour and you have to compete for that too. Your avg breakfast in HK is HK20. Your avg rent for a board room (worst kind) HK1.7~2.5K a month excluding utilities. Boardroom here means a single aprtment segmented into multiple compartments and rented out. Your avg working hours for a professional 10-12 hours daily and they do work on Saturdays (most locally own companies practice that) and Sundays for some. Some jobs avg work week is 80hours. I can go on and on.

  26. bear killer 25 June 2008

    “But I think Hong Kong is not a perfect role model for Singapore
    to follow, bear in mind Hong Kong is not a fully democractic
    society. Among the 60 MPs, only 24 are elected, 36 are appointed
    by the Beijing, most of these are very rich businessmen,
    that’s why Hong Kong has so many pro-business policies.”

    But i think Hong Kong is democratic for the following things:

    1) Popular pressure which finally pushed the inept former Chief Executive Tung Chee Hwa out of office even though he was backed by Beijing.

    2) Factual mistake on the Legislative Council make-up.The number being elected directly is 30, none is appointed by Beijing. The other 30 elected by interest groups in functional constituencies. Certainly don’t have things like GRCs.

    3) Inept ministers are showed the door: Regina Ip. Yeoh Eng Kiong, Anthony Leung

    4) Relatively free press which covered a wide enough range of different views on various issues.

    5) Election of Anson Chan as Legco member, a renegade retired civil servant despite facing off pro-government Regina Ip. The seat contested was formerly held by the pro-Beijing Democratic Alliance for the Betterment of Hong Kong.

    Read up more.

  27. laserpointer 25 June 2008

    Observer,

    There are many folks who aren’t that fortunate to get a decent education, enough to know that such a thing called TOC exist and there’s actually a Universal Declaration of Human Rights, whose main concerns are to get by everyday so as to see the next day.

    Fair to say to them to ‘get real’?

    Right. If you can’t make it in one job, take 2 jobs, if you can’t make it in 2, make it 3. Of course the kids are your responsibility, if anything happens you ought to know.

    If there’s anything you are not happy with, of course there’s the public feedback forum.

  28. Yes, I think it is a time for a reminder of article 23 of the UDHR…

    (1) Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment.

    (2) Everyone, without any discrimination, has the right to equal pay for equal work.

    (3) Everyone who works has the right to just and favourable remuneration ensuring for himself and his family an existence worthy of human dignity, and supplemented, if necessary, by other means of social protection.

    (4) Everyone has the right to form and to join trade unions for the protection of his interests.

  29. Observer 25 June 2008

    @laserpoint,

    Reading out of context, I cannot blame you for feeling that I am a cold blooded soulless uncompassionate person. It’s okay. However, I would like to insert here an extract of my posted comments way back in E-Jay’s article on Human Rights. Here it is.

    “What is really needed to achieve the aforesaid as a good start (if I may suggest) is; within Singapore legal frame work (i.e. we do not want to be accused of inciting a revolt, we did it mainly for the goodness of Singapore as a whole) for the kind law-trained professionals volunteering to disseminate the massive amount of law jargons with its associated fine print into layman term to enable the online commoners (ordinary citizens who are not trained in law profession) to understand our basic rights and in turn we spread the words to those who are less privilege or those who do have no access to the internet or are less fluent with English language…etc. This arduous task has to at least reach 80% of the public.”

    You think there are really public feedback forum? How does it work? Or is it working? Honestly, how often do we greed our fellow citizens, neighbors in the lift? Or how often you see people giving way to older people taking the sardine packed MRT? Certainly, I will be happy for those low-income earners if someone of weight can really see their problems and come to a resolution. Reality can be ugly.

    If you have time, you too can read other comments I had posted in Kum Hong’s piece as well.

  30. Observer 25 June 2008

    @laserpoint,

    Oh one more point. I only have a useless college degree and this is way after I decided that I should help myself.

    You want to know the real cause why low-income earners are the way they are now? Here’s my take on Singaporean Employer’s mindset. What do you first look at when you interview a person for a position? Or worse, what was written in that Job Ad? What was the interviewee attitude when interviewing low-income earner’s job? For god sake, they are people as well. Treat them with dignity.

    Lower educated or uneducated does not necessary mean they cannot perform that job that requires a graduate degree. I have seen many of them during my working life in Singapore to attest that. Some graduates are no better than these labeled low-income earners people. How many employees are willing to take that risk to give them a chance to prove it? It is that crazy paper chase mentality that mold this kind of mindset that stiffle the possible hidden pontential of a person. It is this mindset that diminish and suppress the confidence and courage of the lower-income people who wanted to better themself. Are they given a real chance? What is the percentage of these group of people are met with genuine caring employees who are compassionate enough to give them this opportunity. I applaud the Singapore film “小孩不笨” for bringing this societal stigma to the big screen. Until this kind of mindset is no longer the social norm, they “low-income earners” will remain as is until they help themself out of this dump. They have dignity too. Give them a little respect that they can better themself by offering more avenue for them to upgrade or prove their skill and accord them with the right wages. This is what we should be championing to the employers.

    I apologize for letting part of my EQ rule over my head. I said it as is as I am one of the bottom ladder people decades back.

  31. Harry 25 June 2008

    HK has free public hospitals side by side with private hospitals.

  32. Observer 25 June 2008

    Sorry typo error. Greed= Greet.

  33. Observer 25 June 2008

    Gees the EQ is really getting me. I meant Interviewer’s attitude.

  34. ordinaryman 25 June 2008

    any job for me? i’m 49yrs. marriage with two kids. asking between 1200 to 1400..
    prefer plenty of overtime……chinese,speak simple english ,mandrine and few dialect. with class 3/4 driving lic.

  35. poland 25 June 2008

    maybe because we have learn too much in school and we forgot to learn or no chance to learn at home.
    Hence, we grew up to be (没有家教).
    Else how would good men or women pay an 60yr old ah ma to wash toilet.

  36. Harry 25 June 2008

    The Australian Government rendered all sorts of helps to their people and yet they don’t have the reputation as a nanny state. Their governments are genuine in helping their people and not tie these assistances to political supports. Any attempt to do so will be severly criticised and usually backfired. The political culture in Singapore sucks. The Singapore mass medias have been abused and failed to set the right tone and character for the whole society to follow. When ruler justified increasing GST as a means to help the poor, you know the value system of the society has turned topsy turvy. Where is the loyalty to each other let alone to the state? When the state count pennies with its’ citizens, you don’t expect the business to do any charity.

  37. seeking salvation 25 June 2008

    First is the mindset of employers
    with cost of doing business being very high in Singapore
    what will they do

    1) Employ foreign talent – why cheaper than Singaporeans and they are willing to do the job cheaper than Singaporeans.
    2) Abuse comes in – why would they hire older twirks when they can get a foreign turk who can work cheaper and faster
    3) Here comes the cheaper foreigner who would replace the aunties and uncles
    even in coffeshop – the china mei mei is fast outpacing the local girl beer promoter in looks and charm and costs
    4) The building construction industry echos the same – my Master in Engrg friend
    is being threaten that he be replace by China and Indian engineers his pay can engage 3 to 4 foreign engineers – Boss can’t wait to get rid of him
    5) Who is encouraging all this – Our disengaged over paid ministers who do not know the grounds as their are aloof in their office with their overzealous ideas.
    Who hiring the sixties and severties or eighties – the mcdonalds, toilet operators.
    Is this the swiss standard of living that one politician once envisage – work till u drop dead.
    6) Be realistic – the cracks are showing even in the public service
    This is no complacent – would u work to yr dead bone for the same pay
    The Mas Selamat Escape – save cost on the window grill
    The Great Escape from the Subordinate Courts not once but TWICE
    Complacency – or Overwork The grills and locsk were there
    The Gurkas fight over pay – Pay too little or what not enough to feed their families because cost of living has drastically risen in Singapore – They were suppose to be a disciplined lot
    THE GREAT PASSPORT BLUNDER – Read about the father who mistakenly went through the check in counter (1st Check) thru the departure terminal (2nd check) Immigration (3rd Check) and Boarding Gate (4rd Check)
    What a Laugh
    The imminent disaster is near when u have a lopside administration is believing
    u have to pay too much to sustain good people – rots starts . U have a structure of the coconut tree where there are too much coconuts – nuts for the tree to hold
    what happens the cracks and falls . Ngiam Tong Dow has forwarned in his speech – whose listening when aloofness and arrogance sets in.

  38. Observer 25 June 2008

    Harry,

    “Singapore political culture sucks!” You nailed the issue with such good diction. For it to take change, the mentality of the voting citizens indeed need overhaul. If those affluent and we the average better off citizens exercise a little more care and giving towards our less fortunate comrades, it is indeed some consolation. Treat them with dignity and due respect to boost their confidence. It is not necessary always in monetary terms. Likewise, a miracle is needed for the people at the top to really see the sufferings at eyeball level and proactively reach out to the needy. This is not forth coming anytime soon and the vicious cycle will simply rail its way. God only knows when we will see the light of the day. All we can do is just hope that somehow there are indeed Samaritan-like employers who are kind enough to offer their hand to save a few lucky ones and somehow turn this into an infectious virus. It is a sad picture played out in almost every capitalist state, more so in developed country. The gap between the rich and poor is ever widening. The poor unable to change its course because they are simply deprived of or are too weak to even engage in the battle in the name of profitability and progress.

  39. Andrew Loh 26 June 2008

    Right on sue, the Straits Times seems to be laying the blame on Singaporeans – again. First, it was “Singaporeans are complacent about security”. Now, “Singaporeans are a negligent lot”.

    To save you the trouble of going to the ST website, allow me to paste the article here:

    Passport blunders leave S’poreans stranded

    By Jessica Lim

    SINGAPOREANS are a negligent lot when it comes to passports, travel agents told The Straits Times on Wednesday.

    It is not common for travellers to make a mad dash to the airport with the wrong passport, some said, but added that,more often, they show up at the airport with expired passports or without the required visas.

    Some forget their passports altogether.

    Travel agencies contacted by The Straits Times say they make it a practice to call travellers before their flights with reminders to pack their passports and check that everything is in order.

    Despite this, one in 10 will goof up every month.

    At least one travel agency, Hong Thai Travel, has briefed its employees to be more vigilant about passports following an incident on Monday in which a 61-year-old retiree cleared all checks at Changi Airport’s Budget Terminal after having mistakenly taken his son’s passport.

    He realised the error during his flight to Ho Chi Minh City.

    Upon arrival and informing the Vietnamese authorities, he was immediately put on a return flight here.

    Agents said passengers without travel papers in order inconvenience others. Some cause flight delays; a number miss their flights altogether.

  40. ex unemployed 26 June 2008

    I agree with some comments by Seeking Salvation. I had privilege of not working for 4 mths; no thanks to reorganisation and restructuring happening in most organisations. During this period, I (aged 49 and holding strings of credentials n extensive regional experiences) diligently sought assistance of headhunters and applied to all known advertisements. The conclusion obtained from the few interviews I attended was that quality of the interviewers in both private and public sector employers have to change their mindset!! Above all, they must value local talent with experiences, and be willing to pay adequately. They appear to have this suspicion that those earning more previously are unlikely to stay or do a good job with lower pay packet. Despite assurances that I do not need a higher pay with all large amt commitments already settled, no offers were received from those Singaporean interviewers. The few offers that came were from those foreigners who interviewed me and see the value and commitment I can give. Whose fault? The mindset of distrust in certain Singaporeans just need to change!!!!

  41. Tan Kin Lian 26 June 2008

    On behaf of Kew Kah Fatt

    Tuesday, 4 September 2007
    Workfare
    Singapore time 7.55 am 4th September 2007

    My wife reported a monthly income of S$500 and got about S$563 for Workfare. Now she received a letter from CPF to top up her CPF fmedisave for WIS on her 6 months salary this year for government top up in medisave for her. Another top up will be next year for the balance 6 months in 2007 to be top up by government medisave later.

    The 1st top up is about S$85 and the 2nd top up is about S$170. Total is S$255. After this her Workfare will be just S$308. Is this how PAP government helping the poor ?

    Many poor work to supplement home income. How can you expect the poor to come up with cash to top up medisave after sometime when most poor people have used up the Workfare bonus to buy things. It will be much better that the next Workfare can be deducted for the medisave top. What is the point to give people cash and later want cash back from them ?

    These government thinkers are real idiots !
    Posted by Kew Kah Fatt at 07:55

  42. All these little Token Acts from the government are mostly ‘half-cooked’ or ‘undercooked’ (because it is for the records), and we can all expect more of such ‘half-baked’ initiatives and or ideas from them. Because in the first place, they are NOT WILLING to provide ANY help for the citizens who are in need, hence you will find a string attached to every cent given, which will eventually be ‘pulled’ back into their coffers.

    The only solution I see so far, is in all future General Elections.
    If we all play and do our parts, they can be voted out.
    Change is never without pain, right now, we are not without pain either – it is a constant and growing pain with them in charge.
    Lets remove our source of pain.

  43. Tan Kin Lian 26 June 2008

    A few months ago, I saw a booklet showing the amounts of workfare grant payable to low income workers.

    The table is quite complicated. It shows the different amounts of grants according to age, income level and category of worker (i.e. employee or self-employed).

    Someone asked me why is the amount of grant higher in some categories, compared to other categories? In some cases, it is clear that the older or lower income people should get a higher grant, but in some other situations, the results seem to be perverse.

    I could not explain the rationale. I asked this person not to try to ask “why”. Just accept the figures as they are presented in the table.

    I try to locate this booklet on the internet, but failed to find it.

    I recall that the amount of supplement is quite low, and is likely to be around $100 a month in most categories. I hope that the amounts can be improved to a more adequate level, and that the system is simpler to understand.

  44. Well, Sir, Mr Tan Kin Lian,

    All I can understand (and it is quite apparent), they are NOT whole heartedly willing to ‘help’ in any way financially. That’s why it all looked so perverse, as you have pointed out.

    They are just doing it for the records, to show they are ‘helping’ – in an LPPL way.

  45. Yup, I think it would be nice if workfare payouts were higher. But let’s look at the numbers. The current system costs ~$500m-$1b annually to implement. That’s equivalent to 0.5-1.5% GST which partly explains the 2% GST increase.

    Are Singaporeans willing to bear another GST rate increase just to fund a higher workfare payout? I think most are not. Perhaps another funding source is needed.

  46. laserpointer 26 June 2008

    @Observer

    The point I’m raising is not why or what are the reasons for the low income earners or the families to be in the state that they are in, granted that employers mentality are important.

    The issue I’m trying to make is are we all born equal in this state, or some more equal than others? The same reason why there is housing for everyone, why can’t it be extended to employment, likewise the reason for a minimum wage.

  47. Tan Kin Lian 26 June 2008

    Some people say that if we pay higher wages, we will be uncompetitive internationally.

    This argument may apply to some businesses. It does not apply to many other businesses, including the following:

    > public services
    > domestic oriented businesses

    By giving higher wages to workers in these sectors, we give them a better standard of living. The customers may have to pay a higher cost for these services, but it is only fairer to these low income workers. We should not enjoy low cost at their expense.

    I am not advocating the high cost that is prevalent in western socieities. We can pay a slightly higher cost than now (but not to the extent of the high cost countries), to give fairer treatment to workers at the lower skill levels.

    Some people argued that these people should upgrade their skills to enjoy higher wages. We must not be distracted by these arguments. There are many jobs where the current skill level is adequate. There is nothing much to be added through higher skills. The need for “skill upgrading” should not be used as an excuse for continuing to depress the wages of our low income workers.

    I look at the people collecting rubbish. They come from low income countries. Some people argued that Singaporeans will not take these jobs. I believe that if the pay is $2,000, there will be sufficient number of Singapoerans willing to take these jobs. However, if the pay is less than $1,000, many Singaporeans are likely to shun these jobs. It is a question of adequate pay.

    I just took a $7 taxi for a short trip back to my home. I find this fare to be expensive. But I have to accept it as being the cost of taxis. I know that the taxi driver has to pay high rental for the taxi and for the petrol. He needs this level of fare to earn enough to pay his expenses and make $1,500 a month (working 12 hours a day).

  48. Observer 26 June 2008

    @laserpoint

    “are we all born equal in this state, or some more equal than others?”

    Thanks for the reminder. In a nutshell, the answer is starring right at you in your question.

    It is a fairytale made believe not only by this state that “we all born equal”. A phrase I have heard 50 years ago. We are all given the equal rights, equal access and so on. Really? Welcome to the real world.

    A simple test to this in anything abstract say ‘happiness’: “What are your values say versus your closest kin?” Go further and ask the same question with your surrounding friends, colleagues and so on. You will probably end up with so many variations that at the end your very own values may be distorted.

    Wishes and Reality does not always go hand in hand. In this state, your wishes are tightly held in the hands of people at the top who had either buried their conscience or are staunched believers in “Survival of the Fittest”. Circumstances driven? Environmental driven? Or is it just that animal instinct that we still carry in our genes? Cruelty? No, it is the natural selection process. But they may have forgotten or being ignorance, when they have stricken off all food sources, they will battle each other out and at the end, they all perish. Meanwhile, it is made believe that the source is endless, just like our planet earth resources, some still think it is so.

    Nevertheless, it is laudable to at least HOPE and DREAM. Most dire strait situation clings on and may survive through purely from HOPE and DREAM. HOPE that someday, their situation will change. DREAM that tomorrow will be a brighter day. Yes, it is always good to continue to search for that illusive RAINBOW and hopefully we will find a pot of gold at the end of it. But where’s the end? It depends on the environment you are in.

    All said, inside the heart of those low-income earners who are really trying, the personal battle will move on with or without change or help. They knew it too well that they are their only hope. Try talking to them when you get a chance to meet one.

    Kid, if I may address you. You have good heart and conscience. Keep it up and go infect others. You have a nice day and remember to extend your greetings to your neighbors and the likes. A simple gesture sometimes will brighten a person’s day and it goes a long way.

  49. Observer 26 June 2008

    Kin Lian,

    No intent of insult just purely on differing views.

    “Some people argued that these people should upgrade their skills to enjoy higher wages. We must not be distracted by these arguments. There are many jobs where the current skill level is adequate. There is nothing much to be added through higher skills”

    I just want to extract this portion only for the sake of argument.

    In its context, you have already made the notion that the skill upgrading must be relevant to what they are doing. This is exactly the mindset of the Top people (including some employers) as well. You would have already condemn that person and deprive him/her of a chance to do any other better paying job. Whoever says that the skill upgrading must be related to what they are doing now?

    Example; I am a rubbish collector now that pays me a pittance S$500 or If I am a prison inmate (another topic that TOC can consider to spin off). Are there any avenues for me to up that scale? Yes, if I am willing to put up hours of hard work to upgrade to a skill set where it will pay me better or triple and so on. Because this is what the current environment is. A REALITY we are in.

    Please, think out of the box. Are there such agencies around to council and help people – proactively. Please do not set criteria for enrollment. This is also an example the HK government has done for their low skill workers here. And you know what, it is free of charge. As for your salary scale analogy, does it really make economic sense? Please. It is exactly what the governing party will trounce and happy to make it a mockery if such are the suggestions.

    My apology if my comments are blunt. But it is what the situation is in uniquely Singapore. Isn’t it? Please correct me if I am wrong. I stand corrected.

  50. laserpointer 26 June 2008

    @Observer,

    You have missed the Orwellian statement by a mile. What I meant was that shouldn’t there be some form of guarantee in the social contract that we all are signing, and that includes a right to a fair wage?

    I like the way natural selection explains a lot of stuff, but I don’t see how if there can’t be a minimum wage to make at least a guarantee for exchanging my labour. I like the idea on how you are going to give me a reality check too, but I don’t see why the reality of the low income earners should be the reality that you are talking about. I don’t see too, when I am like them, that if there’s a possibili/ty of me earning 8/hr like in Michigan, that I as a citizen of the state should be subjected to market forces so that we can be competitive and progress as a nation.

    There’s one thing called reality, and another thing called change.

    And oh yes, I happened to converse with them often.