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.
—————–
@laserpoint,
“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?”
Really? Is there one exist? In our constitution? If there is, there are also quite a few things guaranteed and in reality it seemed to have been twisted. Don’t you think so?
“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. ”
Welcome to the real world of “Free Economy”. Singapore definition?
Good to hear that you converse with these people often. Please continue to do so. So you pretty much have in idea of their thoughts in general. May be it will be good if you can unload some of that so that we can help to find a way out for them. A practical way that we can do without the bureaucrat.
Not too wild of an idea. If you really want to help the low-income earners, we do not have to wait for the government to interfere. Some one in the legal profession will have to check how to do it without infringing our tight rules and regulations.
Let’s put it in this way. I am sure if some Samaritan is kind enough to organize a citizen self help group. You can drum up better programs whether in cash handouts or otherwise to aide the less fortunate people with dignity (you know the Chinese saying, “死要面子”). Cultural thing?
In turn, we the better off citizen offer to donate a percentage of our pay to sustain and grow it in whatever possible manner within our country’s legal frame work. And during our off time and do something (anything) that will help generate more funds. Or share our skill set with these people and so on.
Feasible? Not feasible?
If feasible, question is how many of us will participate? How many will be willing to put time to search out the people needing help?
Or again, must it necessary be an intervention from our government to make it work. Knowingly this is not going to happen any time soon. Have you read what was commented just hot from the stove on Today online?
laserpointer on June 26th, 2008 3.03 pm
“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.”
In short, you have to fight for yourself (protest, make noise and do whatever you can, human rights, etc) because other people (including the gahmen) will help themselves more than they will help you. All other explanation is a mere euphemistic approach to whitewash any responsibility.
Hi Observer (June 26th, 2008 1.04 pm)
We need rubbish collectors. We should not condemned this person to a low pay of $500 a month. The rubbish collectors should be paid a decent wage, maybe $1,500 a month. We should be prepared to pay more for our rubbish to be collected.
Maybe, if we have to pay more for these services, we will have less money to buy cars or buy expensive property or spend on extensive vacations.
In some countries, rubbish collectors and other manual workers earn more than office workers. If we pay adequately, more Singaporeans will be willing to do manual work.
Kin Lian,
No denial about it, we need garbage collector, we need public janitor, we need grass cutter to maintain that greenery look and so on. Just on public services. Lots more. And don’t forget about the ever important “maid” for some Singaporeans who refuses to initiate that one day off a week unless the gov mandates it, they are humans too. They should also work until they are dead and put it more hours than the low-income earners.
You have better knowledge of our think tank up there and you know this is not going to work. I will be more than happy for the garbage collector if ever you see the miser willing to foot that amount. Let’s not kid ourselves. You know they will have 101 excuses. One very good metaphor, if that is the wish of the majority citizens, so be it. let’s do it. And you know what, suddenly, your conservancy charges will rocket and unless our majority citizens are that receptive (which we know very well ~ right?). Then next, janitor, next grass-cutter related services and so on. Then we move to defense, recruits, private…etc, then we move on to all other government department…etc.
Now, at the end, citizens not working in the public sector suddenly will hear another bomb drop, propose GST to 10%, propose personal income tax bracket squeezed and tax percentage up. why? expenses went up, need to sustain a good show of GDP growth..and so on and so on but no tax increase on Corproate (you need to keep it competitive). Then we look at the private sectors (don’t forget the low-income people in this sector). When is the cycle going to end? As a matter of fact, this cycle is very vicious but it is inevitable, because you are living in a state with “Free Economy”. It is market driven. Therefore the market will set the trend. Demand and Surplus.
What can really be controlled by our government that they can make it less painful for all general public and perhaps an extra benefit for a low-income group to narrow the gap? That is where I think we all can agree to apart from the lower-income group own battle to move up the ladder. It is a cohesive effort. I think you, I and all of us here or out there are aware of this. Right? You see any change coming soon? May be you can call me naive. Out of touch because I have been away for so long. I don’t know. One thing I do know. It will take a real miracle to change what you are looking for. Old man already quick to reiterate his thoughts today.
I fully support higher wages for the workers rather than overpaying the managers and administrators who in order to ensure the substainability of their high wages, brings in low cost foreign workers to compete and suppress the wages we pay to the workers. Very few of the elite managers will stand up and put their money where their mouth is, that we are willing to pay more for services such as garbage disposal so that the workers can get more pay. On the other hand, for example we pay more for our taxi fare but my feeling is that the increase goes more towards supporting the high wage managers and the system instead of the guy actually driving the taxi getting more income. So, if we pay more for garbage collections, the manager in charge, the CEO, because they are the guy who make the decision,they will be getting a higher pay so that “you will get better service”. The poor garbage collector will not get much more out of the increase. This is how capitalism in Singapore works.
The issue is not the minimum wage thing, it is the government who partially condons this , closing an eye.
The cleaning services at our estates are managed by the town councils.
They give the job to the lowest bidder and this compounds the issue.
A cleaner at my place works during the day but in the evening changes her uniform and work across the shopping center, both as cleaner. Why? Her wage of $800 is not enough. Minimum wage could help the situation but that is one part of the solution. As long as the government is bend on driving Singapore a single means, that is economics the lower class will always be at the mercy of employers and government policies.We are first world salary but we will never be first world when it comes to looking after the less fortunately in our society.
Is it the job of the NGOs? Yes and it is also the social and political interest of the ruling government.
Can the town councils efford to tender for higher and thus less earning, sure they can, but do they want to, most probably not.
Here , it is a good opportunity to show the EQ side of the government and again, profits is all that matters. I think if they do more to help these Singaporean, I think less people will go to them for assistance. The scope for helping these people is really wide and it is really sad that at the end of the day we are really on our own. With inflation creeping how many more families will be sqeezed out of the supposed pie of the government. We are a first world country with a third world mindset as so often mentioned.
The gahmen wants the poor, lower middle class and middle class to rely on them. Yet they are not willing to leave them out of their trouble that quickly. Is like not letting you die instead surviving bit by bit day by day. This is a brilliant strategy. Only our unqiue self praise, self censored, self righteous and self rule gahmen can achieve. The “poor” are left wanting more.
FG
i agree with kin lian, that the lower income workers who are singaporeans shld be given higher salaries for the dirty job they are doing for us.
in switzerland, a garbage collector is paid highly for the job he is doing and he is very proud about it. whereas in singapore, a toilet cleaner, garbage collector etc … is paid sooooo low they even their moral, self-esteem is soooo low that effects their intellect capacity thinking that they cannot get a better job then this. if they are paid well, you will be surprised that even an educated person would take up jobs as cleaners.
just a comment for observer … how much do you have in your bank account that you can arrogantly not see the stars infront on your eyes !!!
when you dont have so many zeros in your bank account, you will be writting differently.
@looker,
You really want to know? Anyone of you here are better off than me. Does that satisfied you? And I mean what I say.
The minimium wage in Australia is about A$568 per week. Strict working hours of 9 to 5 without a minute more or less. Every year an independent commission will adjust the minimium wage. In the minning sector a train driver is paid about A$170,000. There are still short of train drivers. Singaporeans, what are you waiting for ?
@looker
You want to know more about me? Here it is.
I don’t drive, I do not own a home and I have 3 jobless mouths and an old age mom to feed on a struggling package. But guess what, thank god, I am not on any debt and am happy about my life as is now. As a matter of fact, any changes made for the good I will be benefiting from it. But I do not go cry baby and pretend that some crusader or white knight will come help you. Because I knew there are none in the Singapore context. I have gone through that period much more than you can imagine. Don’t be too fast to make your judgment and don’t kid yourself.
That’s the problem with many of the Singaporeans I knew and seen in all over the places. Professionals or non professionals. You view money and material as the most important aspect of your life that you are so engrossed with it that you see others with tainted glasses. Quick to judge to as a matter of fact. Few own a car for necessity purpose but more so to make them feel better seen in a society even risk ending up with debt but then complain about it. Of course the more affluent are much much more flashier. At odds though, the poorer people are much more genuine and some of course were discriminated even within their own community.
Ya, writing up an article to voice your concerns and rooting for support is good. At minimum the conscience is still there. Thanks to the internet. But after-all, the internet is still a virtual world. That does not necessary transform to real action with wannabe results. Why? let me help you with the answer. The general excuse will be because you are living in a suppressed and controlled environment. Really that suppress? Purely in the context of this article, you really do not need to wait for the government to do something if you are so genuinely concerned. Is it genuine or just for the sake of making a statement? So whatever written does not necessary meant there is any responsibility that comes with it let alone how genuine are your concerns is still a very big question mark.
Ya, First World Country and infrastructure no doubt but with a Third World mentality summarized my view for most.
Arrogant? Not quite reach that standard yet. Pragmatic and Realist is a better description of me. I am also a survivor.
Me dare not say any word before this because I have never work or reside in a foreign land, so, difficult for me to make comparisons.
But, maybe I can relate my past experience. I was born to a poor farming family and helped out in the farms(vegetable/pig/poultry) as young as six year old. Left school before Senior Cambridge Examination, worked as construction worker with mother after been resettled to Public Housing.
Working at constructions in the late sixties to the eighties meant tough, heavy menial works. Running the cement mixer itself is beyond the understanding of any young Singaporeans. Let me describe; two to three workers man the motor driven mixer, one control the mixer and the other two will have to pour troughs of sand and sometimes fine granite chips and cement(each pack 25 kilogram in weight) into the mixer at chest height. The trough of sand and granite weighed average no less than 40 kg, when there was no water hose for water, water would also had to be manually carried from source and poured into the mixer.
Each cycle of work usually took hours invariably under open sky and exposed us to the elements, the heat, rain and dust etc. As the lowest skilled, we got about $30 a day. Other duties included carrying building materials up and down from the buildings, roads, drains and other structures under constructions. When worksites are far, transport were USUALLY provided, I used bicycle to nearby sites.
Despite the hard works, my mother, me and others accepted our fates with little complaints, in fact we were quite happy working with each others. Cares, concerns and camaraderies were usual amongst workers those days. No CPF, Insurance, Medical Benefits and yet we were happy. My mother brought up five children, none with much education, the highest was me.
I served NS, got married and is presently an unemployed grandad and as poor as ever. Those earlier days, we were poorer but happier, now we are materially sufficient but I have no happy feelings. Politics, self centredness and boastfulness are everywhere, at the workplace, market, school and estate. Laws and Regulations of every imaginations cover every facets of livings, did someone accurately said we are birds kept in cages?
Leaders care for their remunerations, foreigners came in to take away our jobs and living space. Unskilled jobs almost all taken by foreign workers. Choice housings and locations are purchased by wealthy foreigners. So, where do we stand? Struggling and yet hardly can survive.
And all our leaders could tell us is for us to upgrade, upgrade! They are taking us, the Citizenry, as morons. They think we are blind to those professionals and managers getting displaced, replaced and retrenched, became jobless, went into taxi driving, security job that pay them peanuts. Why are these people suffering such fates? THE FAULTS LIE WITH NATIONAL POLICIES THAT HAVE BEEN AND BEING DISHED ONTO US, SHOVED ONTO US!
DOES ANYONE WANTS TO UPGRADE TO WHERE THE SAID PROFESSIONALS AND MANAGERS WERE AND SUFFERS THEIR FATES, AFTER SPENDING MONEY AND TIME AND NEGLECTING ONES’ FAMILY IN THE PURSUIT OF UPGRADING?
AT THIS POINT, I WANT TO SAY TO THE LEADERSHIP; GO ON AND ENJOY YOUR POWER, WEALTH AND PERKS BUT JUST RETAIN A LITTLE CONSCIENCE FOR YOUR CITIZENS. IT IS NEVER TOO MUCH FOR US TO ASK FOR A LITTLE UNDERSTANDING FROM YOU.
YOU LEADERS ARE MATERIALISTIC, THAT DOES NOT MEAN WE THE CITIZENS ENVY YOU, MOST CITIZENS ARE SANE ENOUGH TO WANT A SPIRITUAL WELLBEING WHICH YOU MAY NOT FANCY.
patriot.
Patriot,
I have read most of your comments in TOC and I do have a lot of respect for you. Ironically, come voting time, we are quite clear where the pendulum is going to swing towards. However, I don’t think we will see much change anytime soon.
You cannot turn the clock back. Time wait for no one. That is a reality. All that we can asked for employers and fellow citizens to treat them with kindness and respect. Give them a chance to prove themselves when they still can. Thank you if you are willing to offer real help. It’s alright even if you don’t. Just give them the space and opportunity. It is not just Singapore citizens, those who are on work permit as well as they too are human beings. Wealth is not necessary measured in monetary terms.
Btw, for years, some Singaporeans have been calling the Regime as the Nanny of Singaporeans. It must be the greatest inapt description, if the Leadership has been nanny, then it is akin to the Stepmother of Cinderella(and the seven dwarfs) and we, the Cinderellas who made to toil endlessly for the Stepmother to enjoy herself at the mirror.
The Regime has been insensitive to the plights of the people and ignored for too long the contributions of active citizens. Even foreign workers such as the Gurkhas are frustrated.
patriot.
Dear Observer;
me too regrets that U-turn is impossible for us, the irrepairable damages are already done in the last two decades or so.
The miniscule land resources have almost been developed to depletion and now the only remaining resource of citizenry are near completely exploited. I depend on no one for survival nor owe anyone a living and my conscience tells me that I simply cannot live to see how my fellow countrymen have to face challenges brought about because of our Independence(State).
Frankly, those days when I stayed in the village, my family gave shelter and food to anyone who needed them. Today, I cannot nor will others do, Singaporeans are regulated and inculcated to being a caged bird which cannot even take care of itself. Citizens have lost much of their freedoms and more frighteningly, their human senses and characters. This state of affairs is brought about by a materialistic and pragmatic culture initiated by LOCAL LEADERSHIP. I cannot say that it is a crime but a sin it certainly is and SINCITY is what some Australians who had been to Singapore call our city state. The Australian Tourists were prescient, but Singaporeans themselves are not.
For the last two years or so, through the local political blogs, one aspect strikes me hard. Almost all the Intellectuals doing socio-political blogs were and are consistently critical of the LOCAL REGIME. Are these bloggers nuts? Certainly not, most if not all are good enough to pack and go anytime. They did not and blogged about their feelings for the Country, yet our leaders treat them as invisible and instead implemented more measures against the wishes expressed by the Bloggers. This is blatant disregards for active citizens, a lack of respect and decency for ones’ subjects, tantamount to ill treatments of citizens.
All of us here are not politicians, we are not even affiliated to any, why are the Leadership treating active citizens like oppositions? Don’t they have a sense of proportion? Are they numb to plights of struggling citizens? Why is the country going into vice industry? Corruption of the minds of the citizens is far more evil than the corruptions of money and power, our leaders do not understand? then what leaders are they?
Let Singaporeans be the judges themselves.
patriot.
I agree with the views expressed by Monsoon (June 26th, 2008 5.52 pm)
….. rather than overpaying the managers and administrators who in order to ensure the substainability of their high wages, brings in low cost foreign workers to compete and suppress the wages we pay to the workers. …. for example we pay more for our taxi fare but my feeling is that the increase goes more towards supporting the high wage managers and the system instead of the guy actually driving the taxi getting more income. …… if we pay more for garbage collections, the manager in charge, the CEO, because they are the guy who make the decision,they will be getting a higher pay so that “you will get better service”. The poor garbage collector will not get much more out of the increase. This is how capitalism in Singapore works.
The top managers and shareholders can take a larger share of the pie because:
1. wages are depressed
2. there is inadequate control over the pricing of services paid by consumers, especially from businesses operating as near monopolies
If we have higher wages and a stronger voice looking after the interest of consumers, we will have a fairer distribution of income and a better standard of living for consumers. We need more people to express a stronger voice to change our current capitalist system.
Even in America, we have politicians who speak for the ordinary people. They appears regularly in television interviews.
In many countries, the workers in the lowest segment are given adequate wages through the efforts of:
1. The trade unions (e.g. Europe)
2. The political leaders (e.g. America, Australia)
More adequate wages does not mean that the business will be uncompetitive. The businesses can adust by:
a. Paying less to top managers (but still quite handsome salaries)
b. Paying less for rental of premises
c. Paying less to shareholders (but still give an attractive return).
It is a matter of being fairer in the distribution of the economic results. Paying higher wages to workers will lead to a fairer and more sustainable society.
Part of the problem that empirical studies based on actual pay patterns have shown is that an increase of wages often lead to further unemployment.
Businesses having to pay more for an individual expects that individual to do far more. So instead of 3 low-wage workers, businesses often choose to hire 2 if the cost goes up and expect the 2 to do the previous work of 3.
This is a phenomena that occurs even in Singapore. An example are when fewer workers hired to clear tables at Kopitiams have increasingly had to cover more and more tables.
I’d like to see higher wages for low-wage workers and even a minimum wage. But I do recognise that the answers aren’t that simple.
lim on June 27th, 2008 10.01 am
“Part of the problem that empirical studies based on actual pay patterns have shown is that an increase of wages often lead to further unemployment.”
It very much depends on the economic stage that we you are in and also the nature of other production / service factor mix at that very stage concerned. If you start from a low base like India & China, well wages are going up and up and away – plenty of margin to play around and value addition work. Likelihood that FDI will flow in to capitalize on their resources. Of course, this is only possible with favourable policies and right existing production / service factor mix for FDI to be attractive.
In any mature economy like Singapore with no resources, the juggling is more delicate & finely sensitive as a lot of factor variables are already worked till its “optimum level”. One wrong move will sometimes serious unintended effect on other variables – one of which is labour (people with real flesh and blood and who need basic minimum for survival).
@Tan Kin Lian
The booklet for the WIS can be found here:
http://www.wis.sg
lim
>>Part of the problem that empirical studies based on actual pay patterns have shown is that an increase of wages often lead to further unemployment.
>>
Not necessary. Have you ever heard of the term “productivity”?
>>
This is a phenomena that occurs even in Singapore. An example are when fewer workers hired to clear tables at Kopitiams have increasingly had to cover more and more tables.
>>
The phenomenon i see more is a foreign worker willing to work at around 400 per month clearing tables which no decent Singaporean worker can compete. Heard of the global phenomenon of “race to the bottom”?
“But I do recognise that the answers aren’t that simple.”
The answer is simple: Just don’t add on the burden of ordinary Singaporeans with regressive taxes like GST.
I also agree that the wage should be higher for the so called “low skill” jobs that are absolutely necessary – e.g. rubbish collector. In fact, there could even be a relevant “skill upgrade” for this field. If Singapore ever decide to adopt a system similar to Tokyo’s rubbish recycling/separation system, some can be in charge of making sure that the recyclables are handled properly.
Just would like to make a point about “conservancy fee” though. I think the present Town Councils can easily cope with some increase in their operating cost. After all, they have collected over 1 billion dollars in excess fee…
I congratulate Tan Kim Lian for daring to bring this up. Kim Lian is a brilliant and good man. He may not know me but I know him since Griffiths Primary School days and his family aquarium business along Thomson Rd.
The case for minimium wage for Singapore is a compelling one.
1. To leave the weakest in our society to the merciless blast of the free market is inhuman. Some might even consider it to be cruel. These are people who are least able to fend for themselves. How can we as fellow human beings, fellow citizens and those as leaders have the consciences to enjoy our good life while allowing our weakests to be exploited under the disguise of economic growth and competitiveness ? How dare we place the full burden of economic growth and competitiveness on the shoulder of our weakests ? Where are the creativity and capacity of our brightest and most capable as leaders to move Singapore forward without sacrificing or weakests ? It is not that Singapore cannot afford it. Singapore is now a wealthy city state with over US$500 billions invested all over the world. Is there a need to rely on cheap labour to move us forward ?
If the PAP government claimed to be one of the world best, then they should stopped the exploitation of our weakests to sustain our competitivenss and use their brains and ingenuities to bring more prosperity to Singapore. All the first world countries have minimium wages. I was told that even Communist China has one.
2. Minimium wage for Singapore will have potential economic side benefits. More wages for our poorest will lead to more consumptions which will benefit the small traders in the heartlands. More wages for the poorest will lead to less of them having to resort to financial assistances for the government and others. We may even end up with less suicides, divorces, higher birth rates and other social ills prevailing in Singapore.
3. Minimium wage also has the potential to solve some of the cronic structural unemployment amongst the old. The higher wages may induce some of those who are not prepared to work to come forward to join the workforce. Thus Singaporeans will work longer to support themselves. Higher wages for the low income will motivate them. They will be happier and more eager to work leading to better quality of work and higher productivity. In the long run such manual jobs may even lose their social stigma as we see in all the first world countries. Any job contributes to the economy.
I urge the Singapore government to stop the expliotations of our weakests by introducing minimium wage as soon as possible. Why they failed to see such a compelling case is a mystery to me.
One bigshot MP demonstrated his driving thru the CBD to show how smooth the traffic runs. Just to bring in the point that Spore government is not earning more money for implementing more ERP gantries.
But then, he forget to remember that they are paid like the busted Investment bankers or business to run Spore, so what is the cost of ERP fares to him?
To ramp his points thru and stop public from making noises, he is a free video film.
When a child grows up in a strict and ‘nanny’ environment, do you expect them to grow up to be – be a more responsive person? The main task for a child to stop the ‘abusive and hashness’ guidiance or training, is to play ‘die’ or ‘stupid’ so that the hot spot is shfted from the child and his/her life will be more peaceful and smooth. Whatever, the parent get more angry or agigated when the child fails to grow normally but makes more of the same mistakes. So the parent starts to blame the child just like the Spore leader starts to blame its citizens for being slow, stupid and not creative. Then the rest of pack (business leaders, the Straits Times reporters and even the agents starts to blame the ‘S citizens’.
The ‘S citizens’ takes its cues by blaming the S leaders. Hear what the taxi drivers mentions to the visitors and foreigners. So much revengeful, pented up frustrations, small heartness and un happiness in Spore.
Hi S Leader stops looking for ways to be more creative than Hong Kong. The 1st batch of local business leaders trusted you and submit their ideas and plans to you. What happen? The project not approved or delayed but their ideas and plans were taken away and implemented by the Singapore Inc companies. Thank you for Singapore promises and lessons learned as we know how the game is being played.
I pity the poor souls of Singaporeans for being bornt here. History has shown that no matter how strict and controllable a leader is, the future will lead its effects … and the ambitious leader will be disappointed before he dies.
Observer, pls ask those Hong Kong who had stayed in Singapore and what they have to say and why they decide to give up Singapore and return to HK or move on another place. It is not a healthy place to stay longer … S leader is always right with a big stick on their hand … Pls do not believe what the official figures – the true is bad and worse.
@Downtoearth,
“Pls do not believe what the official figures – the true is bad and worse.”
Just to clarify with you, in which of my comment did I use or say I believe the official figures?
I have no problem you making a point but if you are directing at me, please get the facts right.
If you are a Singaporean of voting age, more so, do your duty come 2011.
Sorry, I have no known HK friends who are working in Singapore, so I would not have known what they think. But I must say my HK friends (you can classify them poor working class – HK standard) who visited Singapore for holidays, none complain except it is hot. They like the clean air, space and the variety of food. As a matter of fact, they are happy to return to Singapore for holidays. For argument sake. Really! Singapore is not a healthy place to stay longer? Why are there so many skilled and unskilled FTs, I wonder. what was the last count again? Likewise, FT come and go from HK as well as other places. So HK sucks in your deduction?
Harry,
Bravo! Well said. So we expect to see all citizens will suddenly come to their conscience and join the band wagon? I doubted it.
I am just curious, how were the NTUC low-income earners paid without haveing to work overtime till they drop. I hope they earn a decent living wage so we have one less lot to worry for. And for those who are owners of business blogging here, you don’t have to wait for government to act to treat your low-income earners with the right living wage. Right? Oh, those with maids. Please, give a raise to your maid or at least give them a day off each week. They too needed your help.
Observer, to me the top must set the lead in the right direction. For the past 49 especially the last 20 years the top has been setting some of the lead in the wrong direction. Singapore may now be a modern metropolis but it is one without a soul. It is one where citizens are behaving like strangers to each other. Singaporeans are overly materialistic and judge everything on the monetary value place on it. People are judged by the cars they drive, what they wear rather than on their characters and feelings. We have become less human and more like robot.
Hi Harry,
Remember Dr. Syed Alwi’s commented about Singaporeans mindset in UDHR week? I was trying to make my point to him that young Singaporeans needed time to change. I was kidding myself. A reality check confirmed my thoughts. Don’t worry a bit, it is not just Singaporean that is happening, over here in HK and China, there are no short of such young people but they will learn. Sad isn’t it?
But one consolation recently, the behavior of the Chinese people who reacted to the Sichuan earthquake is an eye opener. You would never have thought how come these young people can behave so maturely after experiencing such a disaster. Likewise those who volunteered to help. We are talking about kids here below 18. Amazing.
May be it takes a disaster to wake people’s consicence that there is life after money and material.
A long time ago with the regionalisation thrust of Singapore in the 90s, there was discussion that born-bred true blue Singaporeans will be disenfranchised, and will be stripped of their birthright. The concept of citizenship will change. Only the top 20% will make it. The rest will have to figure it out. The bottom 20% might ship themselves out to be workers in foreign lands.
We have always had great policies and education processes. But by the time, the cohort is educated however, they are out of jobs as the jobs were given to foreigners when we lacked the skills at the start of the new industry curve. There will always be a running gap when the country leapfrogs ahead of the people’s change/adaptability rate.
So we create great jobs, hand them to foreigners, train the locals, when the locals graduate, they are out of jobs.
Meanwhile when we transform industries rapidly, we create job displacement of the new unskilled. Yes, ‘unskilled’ is now the IT professional. Yes, taxi driving is now the way for used IT people.
Many mid level over qualified people scratching their heads what to do with life.
Entrepreneurship is out as start-up price is high. Office rental at $17 psf in Shenton Way. 1000sq feet is $17,000. But cheap to the world. Cheap to the people coming away from London. From Monte Carlo.
Then if the business is really worth doing, the GLCs, now called TLCs, are there. So let me see, what can we do in a tiny home market squeezed out by BIG players with deep pockets and long time horizons.
We progress.
And hold on, take heart. Property price increased and masses became rich overnight. Foreigners buy and rent property. There is always the enbloc potential. End game – some people get richer. Some get poorer. It’s everyperson for themselves. You got enbloc or not, uncle?
Is there a choice? We never dare take the choice. The choice of no longer being No 1? The choice of being second to our neighbours? The choice of having a smaller GNP per capita? What, you mad? You unpatriotic?
Let’s keep going. We must be number 1. If you have money, buy property. We are so small an island. And if the government somehow manages the bottom 20%, the top 20% should comprise the economy. Like California being the 7th largest economy in the world and the largest in the US. 80:20 rule. The 20 rule.
End conclusion – be the 20%, somehow be in property, or get ready to build a sampan to ship yourself away. Question: Are you the top 20%? Or the bottom?
our forefathers were foreigners to singapore. nothing will change, our opinions are an outlet that will not see any light at the end of the tunnel. best thing to do … if not happy … work hard like 12 – 14hours a day … save money … and ship somewhere BUT all ‘somewhere’ have some type of issues or another.
so what to do ? make do for the meantime until the bubble burst … pay high rent to the greedy landlord and pay the high electrical bills and pay for the high price of rice. what goes around will come around !
ooh .. i forget we might just drop dead working so hard to save a few cents before any light comes through to be the 78000 millionaire in singapore.
I want to ask that if the low salary workers continue with low pay and the inflation rising, how are low paid SINGAPORE CITIZEN in future going to buy house to stay. In a bad word to say, chase them away to live elsewhere and perhaps come here to work as foreign worker?
leon on June 28th, 2008 11.25 am
Just hope and pray that they can cope with what little they have and at the same time stay sane and not resort to unhealthy actions which become a social problem.
Well, if the government cannot solve it. Do not worry, the effect will always come go back to them somehow or rather. Singaporeans are very prone (automatic reflex) to point the finger (blame) at them – the unfortunate result of their policies which have a generally overall ‘nanny’ effect..
Won’t it be good to give Singapore people some incentives and train them to upgrade skills? Then won’t it be good that the cost for inflation be lowered, the housing (flats) and the foods cheaper. Everyone particularly SINGAPOREAN live happier without grumbling.
leon on June 28th, 2008 12.06 pm
It is not only about the quality & skillset of labour. We already have a lot of educated people. For people in the lower education scale, no matter how you upgrade you are at best on par with people of tertiary education (poly, degree, master, Phd) and how far you can upgrade academically. In terms of skillset (cheap and good), well there is already an official floodgate open for foreign workers to come in.
Good luck to you if you are in the lower category of the employment scale because even a blind one can feel that he is being wacked from both sides (in terms of education and in being both cheap, cheaper, cheapest and good).
“Then won’t it be good that the cost for inflation be lowered, the housing (flats) and the foods cheaper.”
This question about inflation, you need to ask our governement in areas like GST and pricing of flats (e.g HDB) which are within their control. They seem to be quite deaf to certain suggestions already been made in these areas. Maybe you can convince them better.
Anything which Singapore does not have and needs to be imported like food, oil, vegetables cannot be helped as it is subject to mercy of international trade. Welcome of being born in Singapore where we do not have any natural resources and yet have the most talented & highest paid gahmen in the world.
Dear forummers,
Let me ask you people one question :
How do you justify losing billions to bad investments but simultaneously – absolutely refuse to spend on SOME subsidies ? On what moral ground ?
To me if you are prepared to lose billions in bad investments – then you should also be prepared to spend a few on SOME subsidies !
The pap government have lost their moral compass since the day when they voted to peg their salaries to the top 5 in the private sectors. They have lost their high moral grounds and hence the respect of Singaporeans. That they managed to cling onto power for so long is testimony to how much they have manipulated the electorial systems in Singapore. Now, there is non in the pap including Lee Kuan Yew who can stand up to close scrutiny for virtues and righteousness in the true traditions of the Eastern cultures. This is a real shame especially when they have been turning Singapore more and more into an Eastern society. Their motive is not to improve on the moral values and virtues of Singaporeans but to absolve themselves from the strict demands of a Western Liberal Democracies. That Singapore is such a contradictory society is due in no small way to Lee Kuan Yew subverting some of the noble means to fulfill his immediate needs. For example to legitimise the non action on those (Ho Ching) who blew away $500 million in Micropolis, they began to preach that people should not be faulted when they make a genuine mistake, otherwise they will be afraid to make decisions.
Just one comment folks :
The people should NOT subsidise the Government in making bad investment decisions.
It is the Government who should subsidise the people on SOME commodities !
If you are prepared to lose billions in bad investments then you should also be prepared to make some subsidies……………….
Dr Syed Alwi’s question – “How do you justify losing billions to bad investments but simultaneously – absolutely refuse to spend on SOME subsidies ?”
Answer: The same way a compulsive gambler who loses a fortune but simultaneously refuse to give give some money to his wife to buy food for their hungry children.
There is a report in the Straits Times today about the wages of various occupations in Signapore.
The wages of cleaners have stagnated for the past 10 years. They suffered a real drop in earnings after discounting for inflation. The wages at the top earners have increased more than inflation.
The gap between the high and lw wage earners have widened. This is the result of the “free market”. It has led to inequity and depressed wages for the weaker sections of our society.
I hope that our government agencies should set an example in outsourcing the work to contractors.
They should set a certain contract (which is based on a fair rate of wages for the contract workers) and judge the contractors based on their standard of service.
This will help to establish a fair wage for the workers and get the focus on upgrading the quality of service.
Some government agencies identify their non-core activities and engaged in outsourcing the work. Some examples are cleaning of premises and answering of telephone calls.
Most people are familiar with the tendering approach, as follows:
> specify the standard of work
> award the work to the contractor that gives the lowest cost.
The consequence is that the contractor will find the cheapest source of labour, including foreign workers. Eventually, the standard of service deteriorates. Wages continue to be depressed.
There is another way of approaching this outsourcing of non-core work, as follows:
> specify the contract price, including the wages to be paid to the workers
> award the work to the contractor that is able to give the best standard of service.
If a specified wage is given, the focus is to select the best candidates for the job. This will ensure better standard and quality of service. The contractor’s task is to ensure that the human and other resources are organised efficiently to meet the changes in requirement.
I hope that more attention can be paid to this new method of outsourcing, which is based on quality of service, rather than reducing cost.
Mr Tan – a very good idea. I hope ALL government buildings and STAT boards will go onto this scheme of best outsourcing immediately. It will defintely help the lowest salary people. Today’s report in ST really gave a damning report on the failure of PAP in raising the wages and life of our weakest and poorest citizens….
Today is SAF day.
Same idea – the govt should start paying market rates for our NS men. We should stop subsiding a cheap National service through the blood sweat and tears and lives of our 18 year olds. Please pay them a market rate and reduce the number of months in National Service. Better yet, abolish NS now. With our sophisticated weaponry and world class air force, we should be able to provide adequate deterrent without sacrificing the time and lives of our children. Especially when they do not even get free education in Uni / Poly for this ‘sacrifice’. Govt ministers have salary pegged to private sector, so should our 18 year old!!
Like Mah Bow Tan said in the papers – it is subsidy all the way for HDB or market rate all the way – they cannot be 2 systems. He said this to defend the market price based subsidy for HDB flats.
If that is the case, it should be the same for University fees, medical fees, and National service.
If our young men are subsidising NS – the govt should give them free education. That is only fair!!
Dear leon;
Upgrading of skill, is but a smoke screen and it is a sound good advice
but we need to look deeper into this political exhortation. It is a ploy so beautiful that many are taken in and brainwashed.
“And all our leaders could tell us is for us to upgrade, upgrade! They are taking us, the Citizenry, as morons. They think we are blind to those professionals and managers getting displaced, replaced and retrenched, became jobless, went into taxi driving, security job that pay them peanuts. Why are these people suffering such fates? THE FAULTS LIE WITH NATIONAL POLICIES THAT HAVE BEEN AND BEING DISHED ONTO US, SHOVED ONTO US!
DOES ANYONE WANTS TO UPGRADE TO WHERE THE SAID PROFESSIONALS AND MANAGERS WERE AND SUFFERS THEIR FATES, AFTER SPENDING MONEY AND TIME AND NEGLECTING ONES’ FAMILY IN THE PURSUIT OF UPGRADING?”
May I add here that many job applicants are rejected because they are ‘over qualified’ and many that were retrenched were because their pays were much higher than the many new candidates, including foreigners available in the market who are able to replace them(current employees) at a much lower cost(salary).
This is a very vicious development, which of not arrested, could result in serious turmoil in time to come.
We, the people, must carefully scritinize the words of our leaders and check if there are substances in what they spout(say).
patriot.
Correction to ‘of not arrested,’ it should be ‘if not arrested’.
My sincere apology!
patriot.
I met many workers in the service industry, such as petrol pump attendants and restaurants. They come from Myanmar and China.
These workers are able to accept the low wage and still have some savings to send back to their families in their home countries. Most of live near their place of work and share a rented room with other workers.
The Singaporean worker is not able to accept these low wages, as they have to pay for the installment of their expensive HDB flat and also travel to work (and the cost of transport is quite high). The current Workfare Income Supplement is not able to meet the higher cost of living for the Singaporean worker. As a result, many of the older Singaporean workers are unemployed.
I hope that the wages for Singaporean workers can be increased to an adequate level, or the foreign workers should not be allowed in most service-oriented industries.
The argument has been put forward that we need to be competitive to attract Foreign Direct Investments into Singapore. This does not apply to the service oriented industries, except for tourism.
That is the problem. They have lost touch with the ground. They fail to understand one thing. What is the point of being No 1 when this does not serve the people except a few so-called elite? You may practice all the good principles of management but these are mere principles. Eventually, in the face of seeing another human being suffer, compassion must give way to concepts and theories and systems. This is call “being human”. And this is what makes us different from inanimate objects.
If we keep sticking to black and white rules and pushing the entire population through some economic concepts studied in schools without an eye and a heart on the ground, one can be regarded as no different from a robot.
The ultimate goal of government must be to serve its people. If you say life must go on and turn your head the other way, then the only way you will understand what it means to be a human being is suffer that same misfortune your neighbours are going throough..
Comments edited by moderator. Pls no personal attacks. Thanks.
Someone asked me if it is the work of the trade union in Singapore to ensure that the low income workers get a higher wage, above the poverty level.
The problem is that most of these casual and contract workers are not represented by a trade union.
Previously, when they were employed by the public sector, they were represented by a trade union which negotiated the wages for them. After outsourcing, these workers become contract workers and are not covered by the trade union.
A union leader told me about the difficulty that he and other union leaders faced in trying to fight for higher wages for the low income workers, as the leadership is against a minimum wage. They are quite helpless in arresting the decline in wages, due to outsourcing and the use of foreign workers. They tried to get the members to upgrade their skills, but it is not so practical.