Leong Sze Hian / Columnist
The Ministry of Manpower has published a 74-page press release detailing significant progress in the welfare of low-wage workers. But a closer scrutiny of the report finds that the picture may not be so rosy. (Read the Straits Times report here.)
IS THE Ministry of Manpower (MOM) blowing its own trumpet?
While its press release claims that low-wage workers have made significant progress since 2006, they may in fact be presenting a distorted picture.
(Photo: A road sweeper keeping Singapore clean. Are these workers better off since 2006? Courtesy of Kirk Siang / Creative Commons)
The press release says that “the wages of the 20th percentile full-time employed resident increased from $1,200 a month in 2006 to $1,310 in 2008.”
However, after adjusting for inflation, $1,200 in 2006 would be equivalent to $1,304 in 2008.
This means that these low-wage workers received a wage increase of just $6 over 2 years, or just 0.25% per year.
So, while the headline of the press release proclaims: “Significant progress for low-wage workers since 2006”, are these workers really better off?
The ministry adds that “the number of residents earning $1,200 or less has fallen from 360,000 in 2006 to below 300,000 in 2008.” This is a little misleading as the benchmark of $1,200 is from 2006. The ministry should have used the 2008 benchmark instead, after adjusting for inflation.
The pertinent question should thus be: how many are earning less than $1,304, instead of how many are still earning less than $1,200.
The number of part-time workers in the workforce as a share of total employment increased from 3.2% in 1998 to 6.8% in 2008. There are currently 126,000 part-time workers, and their median monthly income has remained unchanged at $600. Is this proof that the number of low-wage workers (full-time and part-time) may have actually increased, rather than dwindled?
The press release also said:
“More people were working, especially from households living in smaller flat types. The monthly household income of those living in 3-room HDB flats or smaller also grew by over $300 from $1,910 to $2,220. Even after factoring for inflation, this translated to a 3.5% per annum increase in real terms”.
However, this increase in household income may be due to more people working per household rather than an actual increase in household income. What we need to know is the employed per household data – whether it has gone up – and the extent of it resulting in the 3.5% increase.
It is incredulous how the MOM chose to ignore inflation when talking about the rise in income of low-wage workers. As for the rise in household income, it seems like MOM is trying to paint a picture that workers are better off, even when the reality on the ground might be different.
Housing Grants
The press statement also highlighted that “more than 10,000 lower-income families received $144.3 million worth of Additional CPF Housing Grants (AHG)…”
This works out to an average AHG of $13,983 per family.
In view of the very large increase in HDB flat prices from 2006 to 2008, the AHG (or increase in the AHG) may have been lower than the flat’s price increase. For example, the HDB Resale Price Index increased by 37% from 101.8 in Q1 2006 to 139.4 in Q4 2008.
Is an AHG that is less than the flat’s price increase really a subsidy?
Childcare Financial Assistance
The press statement noted that the Kindergarten Financial Assistance Scheme (KiFAS) and the Centre-based Financial Assistance Scheme for Child Care (CFAC) were reviewed and enhanced annually. It provides $41.6 million from 2006 to 2008, for over 11,200 children per year, on average.
This works out to an average of about $103 per child per month. This might not be substantial enough – in light of the fact that the Today newspaper reported in July 2008 that “some 1,500 students attending the seven PAP Community Foundation (PCF) kindergartens in Woodlands will see their fees shoot up by 30 to 100 per cent from July.”
Inflation, it seems, might once again completely obliterate any supposed benefits Singaporeans have gained over the past two years.
Workfare
Why is it that the number of workers receiving Workfare declined from 362,000 in 2006 to 306,000 in 2007, and 297,000 in 2008, during a period of record job creation?
Why did a staggering 106,000 self-employed Singaporeans drop out of Workfare in 2007, after just 1 year?
Was it mainly because they had to contribute cash to their CPF, but receive their entire Workfare as a top-up to their Medisave account? (Note: The Resilence package now gives some workfare to them in cash.)
Home Ownership Plus Education (HOPE)
The press release stated that “an additional 1,200 families were approved for assistance under the HOPE scheme, bringing the total number of families approved on HOPE to about 1,700 at end-2008.”
After 5 years of the HOPE scheme, it is arguably not very successful by any measure, as only 1,700 out of 24,600 (presumably eligible families) have been approved.
This represents only about 7% of all eligible families. The average payout per HOPE family per year is quite a lot – $8,784. So, why are so few taking it up or being approved?
I think the problem may be that the bulk of the benefits is in the form of a housing grant of $50,000 disbursed in annual installments of $2,500 into the mother’s CPF account over 20 years, or until she reaches 45 years old. After that, a training grant of up to $10,000, and cash incentives of $6,000 – $20,000 will be given to help couples with family planning.
But while you may get $2,500 a year until age 45 to pay for a HDB flat, would you want to risk losing the flat plus face litigation if you can’t service the mortgage in the future? Would you really go for training when you are probably still struggling with work and free time?
Does it really make much difference for suffering families now?
Conclusions
As my final analysis, this 72-page press release may be of little meaning or consolation to lower-wage Singaporeans, because for them the reality is that they have been adversely affected by the downturn: many may have lost their jobs, had wages cuts, no bonus, shorter work week, compulsory leave, and so on.
The government’s threadbare social assistance schemes have not done much for them over the past three years, and are unlikely to serve them any better in the months ahead.
All the data that the government has released cannot conceal the reality that Singapore has become a much more unequal society under the government’s growth-at-costs approach. In thinking about how to restructure the Singapore economy, the government might want to rethink the premise of its economic strategy.
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Read also: “Average income of low-wage workers up by 9% over past two years” by Channel NewsAsia.
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52) Banana Kangolees Gown of Clowns ,
do you mean can the ‘elites’ handle the TRUTH?
the government has very good marketing team, and the media filters all the responses that rebutted. so most singaporeans get to see the marketing stats and slogans and in so, believed that singaporeans are better off each year.
I observed in the coffeeshop landscape that people these days do not believe in anything said by the government anymore. On the contrary, they see everything as bull. The more the government tries to look good, the more negative effect they generate.
So, the scenario I suspect – Government briefed MSM, MSM published it, government reads it the next morning while seeping their latte and says to themselves `Ahh…..good, good, I’m sure the people will be convinced’. And out there the next morning, the ordinary folks read it while seeping Kopi-O says `Wah lau….what a load of &#%u/?…..’
He is probably referring to foreign workers’ (PR included) wages have improved. These peolple earned $400 rupee in india or $300rmb in china but when working in Singapore they earned $800 & $1200 SGD respectively. From this perspective, wages have indeed increased tremendously. That is why Gan Kim Yong kept emphasizing foreign workers and nothing concrete was mentioned about Singaporeans’ wages except to smoke us with his pre-election talk. Rest assured that such talks will stream through the msm until election date is confirmed.
winstoncheng,
problem is, THEY stil thinks or believe that we are swallowing their crap…
and absolutely NO ONE makes a noise in public or anywhere about all these.
Then what people do comes next GE? Will there be stil 66.6% left?
Or people still gets bought over with carrots and little packets of sweets?
After that, it is another tough grueling, and frgual 5 friggin years with them!!
I was chatting with a colleague in my company (based in KL) today. she said she visited spore the other day; she pointed out the sorry sight of elderly people working in food court and peddling on the streets in Singapore. she said such is not common in KL and suburbs (which in total has a bigger pop than singpaore). having pointed that out, i too realised that i haven’t seen anything like that in KL/suburb since Feb 2009 when i started working here. I wonder why.
52) mike on June 8th, 2009 3.46 pm
52) Banana Kangolees Gown of Clowns ,
do you mean can the ‘elites’ handle the TRUTH?
===========================================
Why need to be elites? I don’t bias towards elites or non-elites.
To me, both are just merely mortals as in they all have finite years of mortality. This is the Truth of human beings and all creatures on earth.
Can humans handle the Truth or some prefer to Believe?
Believing someone is not a bad thing in itself.
It can make things easier – like no need to investigate if something is the truth.
But still the scientific side of me prefer to see solid evidence.
If you can prove it , you are telling the truth.
If you cannot prove it, people can still choose to believe you.
The world is not made up of mostly smart people, you know?
This is why the richest are the minority.
Two things @50
How can a Singaporean get evidence? So since we can’t, it is based on what is happening to judge whether the stats is reliable. If what people are experiencing does not tally with what the stats say, that is closest ‘evidence’ of screwed stats.
You talk about jobs of higher value. Yes, exactly, the industries in Spore are pathetic! Majority are manufacturing and managed by expats. In fact even the top job in our very own Temasek is given to expat. 50 yrs on and we are still relying almost totally on foreign investments. Our education and ministry of trade & industry have produced or achieved nothing but continue to collect their multi-million dollar salaries and get praised.
54) winstoncheng on June 8th, 2009 5.50 pm
observed in the coffeeshop landscape that people these days do not believe in anything said by the government anymore. On the contrary, they see everything as bull. The more the government tries to look good, the more negative effect they generate.
the problem here is that those MIW still think they can do the same trick to con those folks out there not even knowing the truth is that situation at ground level is going to explored in time to come, what feedback they are getting through most of their so called grassroot thingy are always the goody goody things, everyone is happy with them. This can lead to a tsunami case comes next election if they still think that the majority of people down there are still supporting them.
WHAT ABOUT THOSE LOW WAGE WORKERS THAT LOST THEIR JOBS? CONVENIENTLY OUT OF THE STATISTICS.
my daughter who is 24 yrs old and was retrenched lately. having to pay loan for education (degreed course), a poly graduate in chemical processing, got a job working as waitress though for temp., was paid $1,100.00 from 4.00 pm to 1.00 pm. this is what singaporean gets!
ask ur girl go NUS or NTU get a real degree, except maybe she need to have even better grades than the PRCs, Mymars, Indians, Viets who are paid to come here to study, & btw the PRC to local ratio are easily 3:1 … including the lecturers
This is a sad day for Singaporean. We have been told to defend our nation and we did. I remember the days when I tried to justify the need for National Service and reservist training to my friends. The need for every man in Singapore to pick up the M-16 when our security is threatened. I was proud to be trained for that.
Today, we can’t even defend our rice bowl against the invasion of foreign workers.
Bottomline is, we’ve been screwed!
hi winstoncheng,
you are wrong liao, you pick up M16 to defend the foreigners… must treat them like they are the 1s giving you the ricebowl.
……………………………………………………………………………………………………………………………
hi Concerned Sporean,
////how can a S’porean get evidence?////
take pictures with 35mm camera? film negative is not that easily manipulated compared to digital image censors.
Dear #50 two things on June 8th, 2009 3.26 pm
You said:
“Without evidence, I won’t go so far to accuse the government for manipulating statistics. But I must say, they must have hope that statistics look good on themselves. On the other hand, equally guilty, are people who hope that the statistics reflect bad on the policers makers.”
What I think:
There are too many cover up going on in this country. Case such as: Temasek, keeping quiet still foreign media report their losses. As far as I am concern the gahman has already loss her creditability. Convince me and make me believe what reflects in the statistic is true base on the gahman’s track record.
You said:
“ As I mentioned earlier, the only way to achieve an increase in real wages is by commanding a job of higher value. Aside from reporting wage increase, it’ll be revealing to have other statistics to measure how much has been done to help people acquire capability of holding a job of higher value, and what are the difficulties for more improvement.”
What I think:
What is Time value for money? What is inflation? I do not know where you are heading to . Don’t you know that when there is inflation we are actually reallocating wealth (from the poor to the rich) if there is no adjustment to real wages? I think you have got things seriously very wrong.
In the way you put it, the salary of a road sweeper should not have his wage adjust to inflation while, a high class being can have the adjustment to their real wage. It is not about commanding a job of a higher value. It is about being fair. (i.e. the salary of a road sweeper in Singapore should have a higher salary as compared to a road sweeper in China. Why? Higher cost of living!!) We are talking about how to put lower income worker back to their original position, hence can buy the same basket of goods given there is inflation in any point of time. So what are you talking about?
#34 ram…
Great line man…forgot that one…thanx for reminding me…
Hi TOC:
I have been posting the last two days but after submitting the comments, they disappeared into the thin air.
Any idea, what is the problem Sir ?
Is this how Low-Wage Workers are ‘better off’?
>> http://tnp.sg/news/story/0,4136,204462,00.html?
PAP has done enough of people damages already, let’s shut them up and force them to close down their 154th states Times. I can’t believe I am still FORCED TO PAY for my TV licence, damned!
Most needy do not even read English. What is the point of this report?
60) tiredsingaporean on June 8th, 2009 8.40 pm ,
this is what my sentiments too about what you said. all ground level is pissed and frustrated about the government system. ppl are really struggle and they do what they can to uphold and survive all by themsevles not from the government.
this is true facts.
WORK HARD, AND DIE POOR!!!! YEAH!!!!
#65 tiredman: … if there is no adjustment to real wages?…. it is not about commanding a job of a higher value.
You didn’t get it.
1. real wages = wages adjusted for inflation = real buying power of wage
2. commanding higher value = having a capability that employers are willing to pay more salary. For example, getting promoted, doing a more difficult job, doing the same job better (including becoming more experience than before), or doing something that consumers want to pay more.
“On the other hand, equally guilty, are people who hope that the statistics reflect bad on the policers makers.”
What rubbish. With some negatives & answers coming in a manner that leave much to be desired. It is not too difficult to know that dots are missing when they should be there. If you do not know how to spot them, do not blame others for spotting them.
We need a referendum on the PAP……………
The only way is to get the opposition to contest EVERY constituency………..
The ballot paper should just read “PAP” … or…. “OPPOSITION” ………
Wahhh Liao….. buay tahan liao………..
The job fair got jobs for non-degree holders, based on the one i been to today.
salaries i heard are between $900 to $1000.
Low wage workers better off – really?
i not sure since i not sure who provided the data and who can access the real data and what is the reality.
Think about it, is there any consequence to ST’s inaccurate numbers or nonsense report? Any consequence at all if they lie??? Its not as if they will get thrown into IMH or detained by ISA (unless of course the ‘news’ are NOT to Govt’s favour). The answer is a crystal clear “NO” (somebody will get promoted instead)! So of course they WILL lie, its like given the free kick to score a goal in football, won’t you? Under this circumstance, we don’t even need to check out the accuracy of the figures or gather evidence. There is ZERO credibility on such a newspaper.
Low wage workers better off cos’ they get to die in S’pore lah. If you’re middle income, you die in JB lor….
57) Yes I realised that long ago although I frequent JB more. Our leaders need to be shot with a lump of mud to wake them up!!! ( burning them is too much! )
My question is this, why is this happening to Singapore! The high cost of living?, low wages not from the old folks working but their family members, so low that they have to work themselves.
The father and son who jumped, the repossession part was not reported in the ST until I read the Today online edition.
As I’ve always maintained, they stop this policy now! I hope the relevent department heads are reading this.
They can write what they want to write as long as approved by their Editors.
Looking at all the ST articles, I always wondered did the writers come up with the topics or they are given topics to write?
Makes a lot of difference in terms of the kind of information coming into our minds.
ACACIA #79
The said today online article is now missing…
I have always wondered what happens after a person’s flat is repossessed as it can be a traumatic experience for the whole family.
Does MCYS or HDB ensure that there is a place for the family to relocate to before allowing for a flat to be repossessed? Or is it another case of ‘you die, your business’ here in Singapore?
Although they may not have caused the deaths of the father and son directly, I believe the people that took back the flat already have blood on their hands.
To ’62) toiletmatter on June 8th, 2009 11.18 pm
my daughter who is 24 yrs old and was retrenched lately. having to pay loan for education (degreed course), a poly graduate in chemical processing, got a job working as waitress though for temp., was paid $1,100.00 from 4.00 pm to 1.00 pm. this is what singaporean gets!
ask ur girl go NUS or NTU get a real degree, except maybe she need to have even better grades than the PRCs, Mymars, Indians, Viets who are paid to come here to study, & btw the PRC to local ratio are easily 3:1 … including the lecturers’
YOU ARE SPOT ON. the division where i used to teach in NTU now comprises 12 FT/PRs to 1 Sporean. I left the system because many of these FT/PRs have low work ethics; this depresses me; they will eat you up for breakfast/lucnh and dinner over and over again and then when the day comes, you will be thrown out. I am now working in Malaysian uni.
#73 two things on June 9th, 2009 2.11 pm
You are wasting my time. This is just not the way to combat inflation and to narrow income gap.
To #73 two things.
“#65 tiredman: … if there is no adjustment to real wages?…. it is not about commanding a job of a higher value.
You didn’t get it.
1. real wages = wages adjusted for inflation = real buying power of wage
2. commanding higher value = having a capability that employers are willing to pay more salary. For example, getting promoted, doing a more difficult job, doing the same job better (including becoming more experience than before), or doing something that consumers want to pay more.”
for point #2, You are missing the point. There will always be people who do not have the capacity, aptitude, capability to perform jobs of higher value existing amongst any societies. So what happens if you do not have the capability to perform higher value jobs? Does that make it okay to disenfranchise these people? To make as if they don’t exist and then sweep them under the carpet somewhere?
Doing the same job better may sit well with some employers, but given the climate of employment in singapore, the employer is likely to load you with more work than to give you a pay rise or promotion. Like the common saying these days goes, the reward for good work is more work.
Most policies have to be enforced before any employer will even consider putting them into practice.
Our leaders current or future have to change their mind set, that the society, no matter what “cracy” it is in, has to be inclusive as much as possible. It should not rely too much on idealism such as elitism or meritocracy and create an exclusive society where only a few opinions matter.
I think singapore is starting to feel the pinch of such idealism. Ideals do not matter. People matters. All policies should be people oriented. If the government cannot address these real issues of the country convincingly enough, they should make room for a better player. They should not be too afraid to loose their power and benefits. Afterall, these are elites who could easily find jobs out there that commands them similar salaries as ministers.
Jobs, employment, should also be people oriented as oppose to productivity or growth oriented. What is the purpose of so much growth when a good percentage of the populace are in dire financial situations? We move at the pace of the slowest people, that is the fact of all societies.
Our leaders have to seriously relook into their policies pertaining to the less fortunate and consolidate some real strategies and purposeful policies to alleviate their dispositions. Shorter working hours, better justified wages, childcare providence, education subsidy etc. And be less stringent about the selection criteria. Whats the point of having a good financial aide plan when only a few people in need gets it?
Finally found an article on low wage.
Fact :
1. Singaporean NITEC cert holder is offered only hundreds of dollars and not even 1k a month for
6 day job.
weekends are all working days.
shifts – work till early morning.
To me, such low wage is very competitive even for foreign workers.
what say you?
why is salary level like this?
Can retire with dignity?
Can meet min sum?
better don’t grow old.
Lee Fatt Yew
Hi #85,
wow, that kind of pay is comparable to road sweepers and hawker center cleaners if not cardboard collectors liao. I mean, you did not mean lower than $100 a month right? But seriously, can singaporeans be paid $99 per month or less? What is there to stop lowering of wages? Lets say foreign workers ask for a nice round number of $99 per month.
hey #85 Lee,
I suppose the employer, prolly singaporean, also by hiring sub-1K singaporean NITEC holder will get to enjoy the JCS?
Sze Hian is awalys such insightful into the details … hats off
And shame on you Mr Gan. I thought you are unlikely the rest of PAP elite who uses propaganda and misled people. Looks like you are just one of them.
Ultimately, it is not what we read on paper that counts. I’d rather depends on what I see daily on these low wage worker. Each day I see ah gong & ah ma working tirelessly in coffee shops cleaning table or washing toilets, just to earn peanuts to support their themselves and their family. Some of them selling tissues or simply begging at the road side.
One would simply wonder whats wrong with out society, shouldnt these golden age grandparents be enjoying their last few moments happily with their family?
I am reminded by TOC’s article on comparing Singapore with Animal Farm. Recall the chapter where Squealor was reporting increases in grain and food production to the animals, but those animals were still feeling hungry?
88) sadsg on June 11th, 2009 10.15 am ,
unles these golden age grandparents are of LEEfamilies’…….
want a slice of life from the “horse’s mouth”, just chat up security, retail or F&B staff during off peak hours, usually 2pm – 5pm.
;)
ya, pay increase = working hours also increase. 1 person doing 2 persons job.
What will happen to all these elites if and only if in a scientific fictitious fiction, a new gov takes over? what will they be doing? I hope they continue do what they do lor. I mean they so good good and bombastic and steady bom bi bi .
regards
Karma
Dear Mr Leong,
You have written a good analysis to the MOM’s 74 page report. I certainly don’t feel that the low wage workers are better off now than in 2006. We see a huge inflation in oil, gas, food, water, and housing from 2006-2008 before the economic crisis. These things are necessities and even the low income people can’t live without them. I believe much of the price increase is due to the commodity speculations from the rich investors and oil tycoons although the turbulent climate and diseases did reduce the supply of crops and livestock too. The rich co The income of the poorest 20% of the people did increase by 9.2% but inflation for this group also rise by 9.5%. The commodity investors have milked a lot of money from those necessities out from the pockets of the low and middle income people who have to pay higher prices for their oil, gas and food.
there is an article in the Straits Times about this issue today, page 2 of the main section. the coverage is more balanced, could have been a response to this article? ;)