If we are not careful, it will instead create rigidity and distortion in the labour market, add costs to businesses and undermine their competitiveness…Just reducing the dependence on massive amounts of cheap labour is not the answer to our productivity problems.

Manpower Minister Gan Kim Yong

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44 Responses to “Cutting cheap labour not the solution, says Manpower Minister”

  1. ahtong 8 August 2009

    Mr Gan is right in the first part of the quote. But I disagree with the second part. Reducing the dependence in foreign workers is PART of the solution to increasing our productivity. When did it ever become the only solution?

  2. marketplace thiologist 8 August 2009

    Is cheap labour even correlated to productivity in the first place?

  3. videoman 8 August 2009

    how to get cheap labour?
    manpower minister?
    when you implement workers’ levies
    before the poor workers even get paid
    your manpower ministry demand a monthly gangster extrortion fees of $300 or more for doin NOTHIN
    when/if the workers disaPPEAR
    WE HAVE TO PAY YOU $5000 in security bond
    what you want us to do?
    shakled the worker after workin hours
    and treat them liked slaves?
    and sinced you are so damned smart
    why don’t you asked your former ex-colleagues minister liked the former lta minister/david lim of whatsoever
    to run a contractor firm and see whether they would scream @ your terms and conditions?
    heck just asked limsiasuayed to step down
    open his own private buses and employed foreign bangala drivers lark….
    talk is cheap
    when you are not the employers’ ends….

  4. All this young minister are just follow orders. They just don’t know how to think and still receving million in salary. Hopless!!!!

  5. I would also like to understand the economic correlation between wages and employee productivity as posed by #2. Is the premise simply that you will be highly motivated and productive if you are well-paid?

  6. 5) Lee Chee Wai

    “Are you hungry enough? ”
    This question to a certain extent determines employee productivity.

  7. Anybody can talk 8 August 2009

    Aiya, what else can these ministers think, said or do which others don’t know how to do the same.

    If they cockup, you people suffer only what. Some more you people die die no choice have to vote for them.

  8. Then What Is the Answer 8 August 2009

    You have told us what is not. Then what IS the answer the our problems, Mr Manpower Minister? Have you got any solution at hand?

  9. #6 /// Are you hungry enough?///;;;; Hi KopitiamApek ;;;; Please elaborate how hunger is connected to productivity ;;;You mean starve the people and they produce more, or you feed the people five meals a day and productivity will rocket.

  10. dielah 8 August 2009

    of the 1 million foreigners working here, almost 9 out of 10 are unskilled workers. understandably, as the population gets better educated, more and more locals will shun these jobs. as these jobs are essential to the entire economic ecosystem, there is no choice but to hire foreigners. whereas the good paying jobs( about 100 000) which are suitable for singaporeans are taken up by foreigners leaving some of our locals with no choice but to seek greener pastures overseas. as of today, we have over 100 000 singaporeans based overseas.

    without vital statistics to make a calculated judgment and looking at the division of the number of foreign workers here ( 900 0000 unskilled workers + 100 000 skilled) we can perhaps hypothesize that in such a economy like ours, we need many more low paying workers over the high paying jobs to keep it going – or to keep the good life going for the “cream of the crop”.

    the thing is this: already, the better educated singaporeans are shunning low paying jobs. for argument sake, let’s assume 9 out of 10 of our people achieved tertiary education, now if that happens, where are they going to find people to fill up 9 out of 10 poorly paid jobs?

    depend on foreigners for many generations to come?

    i do not think that’s a viable option in the long run as surrounding countries begin to develop and modernize and their citizens too get better educated.

    they too need low skill workers to sustain their economy and the day will come when these low skill workers will deplete and what happens to singapore?

    what happen to a country that cannot do without low skill workers and highly defendant on them to keep our elites or tertiary educated at the top and commanding high pay?

  11. I think the question shouldn’t be on cheap labour, but rather how to have a more equitable society. There is no doubt that cheap labour from Phils, China, Myanmar has hurt the prospects of our worst off citizens.

    Personally, allowing them to come or otherwise is beside the point. The point is are we taking care of our own people enough first?

  12. mice is nice 8 August 2009

    hi Budamax,

    should ask our mini-stars:

    “are you hungry enough?” :P

    well, words of a true slave driver, all hail the “Minister of Slaves”!!

    O.O

  13. mice is nice 8 August 2009

    instead of focusing on the non-solutions why not just say the solution? unless dun have…

  14. mice is nice 8 August 2009

    hi Inix,

    you’ve hit the nail on the head with “The point is are we taking care of our own people enough first?”

    probably this Mr Gan KY does not want to answer straight to the point. by now should know their “pattern”. draw a salary paid for by taxpayers & this is what taxpayers get in return…

    uniquely S’pore.

  15. Terence Goh 9 August 2009

    Erh…so what if they don’t take care of our own people first? What can Singaporeans do about it expect KPKB or emigrate? If you leave, they will simply import new citizens to replace you. Now can get PR immediately after graduate from polytechnic. For these people who grew up in 3rd world countries, Singapore is a big improvement and they are more than happy to stay, at least until they qualify for USA. But no problem, the supply of immigrants is unlimited, it is not compulsory to have people born and bred here.

    The writing is already on the wall and they have been dropping hints now and then, only you are too blind to see it.

  16. Daniel 9 August 2009

    Terence Goh ,
    you are right. Those bloody clowns must be voted out before those foreigners becomes citizens to drown those vote and voice of Singaporeans ! The fact that now ShittyTimes is now increasingly using foreigners to speak up for gahmen already demonstrate that.

  17. man against the tank 9 August 2009

    I have been to Australia numerous time and have seen Road construction workers to be white aussies…I have yet to see a foreign workers digging roads in Down under…

    “Just reducing the dependence on massive amounts of cheap labour is not the answer to our productivity problems.”

    So I guess the aussies are a bunch of unproductive lots.

  18. knoworNOT? 9 August 2009

    SM Goh expects citizens to work till 75 and have 15 years retirement. A lot of Singapore old uncles and aunties all out of jobs, replaced by very cheap foreign workers, a lot of them getting less than $1000 a month. So where are these jobless uncles and aunties? They cannot have a SM job like Goh or Lee and work till 90.

    In Japan, the country is quite similar to Singapore. If you have no education but willing to work, you will get jobs and never go hungry. Here in Singapore, a lot of These people cannot find job, some even with education. Japan takes care of their citizens, unlike cold blooded Singapore, which would pass these problems back to their own families.

    Singapore cannot always try to compare to orange or banana, but compare with the likes of Japan, Australia or UK. In Singapore, citizens are often on the losing side, short changed and made to pay (like government losses). This government does not put citizens as priority, just a lot of marketing to tell us how much they care.

    Rising cost amongst world’s highest make living for average citizens very tight and stressed. Rental, Manpower, Elect/Water amongst highest in the world. So they bring low cost foreign labour to allay the cost, but this is at citizens’ expense? Why not they consider lowering operational costs instead?

    Did you listen to MJ’s song, “They DONT CARE ABOUT US”. ahhaha

  19. knoworNOT? 9 August 2009

    anyway, vote them for MORE BETTER YEARS.

  20. We have yr typical “good cop, bad cop” play acted out this Nat Day to show ppl that the government is listening to yr grouses. in the end, we know the conclusion and that the policy remains unchanged. Very soon, the majority of spectators at NDPs will be foreigners who probably feel that they are invited to some kind of North Korean parade. Wayang kulit at its best.

  21. He is the reason why Singaporean workers will continue to suffer as they appease up to potential foreign employers.

    Our wages have lap behind the cost of living so much that people have no chocie but to chalk up credit card bills to survive or take on a second job.

    It is no wonder people in therir30s are mostly planning to take up PR overseas for any eventuality.

  22. The high cost of living/expenses in doing business is the root cause to our uncompetitiveness, resulting in the need to import almost 1 million of foreign workers.

    The government needs to reduce the cost of living and cost of doing business. Do not be deceived. Reducing corporate tax is not reducing cost of doing business.

    With reduction of above costs, everyone can live more comfortably, even on existing salary/wages. There is no need to raise wages/salaries when costs are reduced.

    Singaporean’s biggest life expense is the HDB flat. Stop raising the price of HDB. Stop spouting the nonsense of market subsidy. Go back to real subsidy.

    If you have COE to limit the number of cars, you do not need ERP and vice versa. Cars are better built. Why the necessity to scrap cars after ten years?

    MediaCorp has been privatised. Why do we need to pay a TV and Radio license. The government can pay MediaCorp from surpluses to produce social programs. The amount of money lost through TH, GIC, MAS can pay for donkey years of TV & Radio license.

    Water borne tax. Is this still necessary? We are recycling the water.

    Why the maid levy? With smaller & smaller HDB & private flats, it is a matter of time that families will phase out maids because there are no place for them to sleep.

    CUT, CUT CUT. government expenses, levies and taxes. This is the way to reduce dependence on foreign workers

  23. aiyoyo 9 August 2009

    aiyoyo

    “Just reducing the dependence on massive amounts of cheap labour is not the answer to our productivity problems.”

    elites package to lower?

    root cause? elites take preventive actions earlier (in which the state

    commoners are in now)? [since so many elites around]…

    aiyoyo

  24. To KopitiamApek:

    as if hunger is sufficient? This is one of the dummest thing sprouted by the govt.

    Then how come Ford gives his employees a much higher than industrial average salary.

    There are many hunger Chinese and Indian out there. Is that a reason for artificially improvishing our people. I thought they worked hard earlier in their lives so that they can enjoy life later?

    Stop payment of CPF as and when they like? That means you have to insure and stock up another pile of monies to protect yourself agains them doing that when you are old and weak… Is this fair?

    what about those poor people who sign up the lease buyback and got the monies transferred to CPF life depending on that sum to be paid to them in a regular manner?

    there are poor people who needed that monies to survive.

    Look at how they twist their policies to ridiculous conclusions.

  25. The reasons why we need massive immigration are as follows (I think):

    1. The bulk of the immigrants are not old people. Why do we need so many young immigrants (as evidenced by the govt insistence)?

    2. To increase the pool of young people to improve the population pyramid so that they can continue to support the property prices.

    3. If the property market crash, the govt thinks it will hurt them more. The banks that loan out all those HDB loans will suffer and the govt owns many of these banks.

    4. I believe (3) is true because this govt is only guided by its self interest whatever it proclaims. I am sure many will agree with the self interestness of this govt.

    5. Are there other ways of supporting the property market? Stop land sales, lease buyback, reduction of loan etc?

    6. Every single one of these methods will result in the govt either taking in less revenue or transferring from the reserve back to the people.

    7. Will they do that?

    8. I think most will agree they will not for all the reasons you can imagine.

    9. I suspect there is a huge asset liability mismatch between our reserves and the liability to our people (due to pension or CPF payments).

    10. That is why they had to delay the payments to 65 and cut the withdrawal amount by increasing the minimum sum which assures nothing for the people. The only assurance is to the govt allowing them to keep more monies.

    11. If the govt is doing this minimum sum because people have been mis-spending their monies and have no monies to retire comfortably. with the currently system, there will be many more people who will not have sufficient monies to retire and providing them no assurance about payment means they have to insure against the govt doing that.

    12. Sing govt bonds have very small likelihood of defaulting. right? The CPF life scheme is of a lesser security than these bonds because the CPF board can halt payments.

    13. The public is of a second class to foreigners who buy the Sing govt bonds.

    14. And you have less liquidity risk with Sing government bonds than CPF life.

    15. Who would want to immigrate to this country if not for the freedom to travel without the need for a visa?

  26. bull shit 9 August 2009

    massive amount of cheap labour – here in singapore??

    No wonder the govt has no guts to implement a min wage policy to protect the citizens of singapore

    Socialist democracy my foot –

    it is only to help the corporations – not the citizens.

  27. Let’s be very clear:

    The CPF account is your own monies.

    It was never intended to be a pay as you go system at the beginning. That was one of the plus points lauded earlier on.

    with the current modifications, it will become a pay as you go system with the younger generation paying for the older generation. Whatever the masqurade that the govt is sprouting.

    We will end up facing all the problems the current western economies are facing.

    Gan, does not know what he is doing. As if protecting our workers more will introduce more rigidities?

    With the kind of crap, this govt is attracting into govt. no wonder, we are in the current state?

  28. knoworNot 9 August 2009

    CPF is our monies but we live in a country where we have no chance to vote, give different opinions etc.

    After so much losses, the only way is to hold our CPF ransom to ensure they are still in the black.

    I think in long run, CPF is something you can see but you cannot touch physically. No chance of withdrawal for majority of us.

  29. KumpongBoy 9 August 2009

    MOM loves cheap labor.

    They have imported so many foreigners into SG that foreigner grads may command a salary of $2,500+ while an NUS grad may get less than 2k or jobless

  30. leesjuanpat 10 August 2009

    We must decide our destiny by the next vote if there is no walkover in some constituencies.

    Come election time, PAP gahmen will entice the old poor uncles
    and aunties with little frisbies of cash but after that will suck our blood dried when
    they are voted in again with all the increases.

    We must wake up and cast our vote for real justice and equality to our poor and
    jobless old citizens discarded aside by the PAP system of importing so many foreign workers and the government make so much money on the levies collected. Imagine one million foreigners levies collected every month to enrich
    the ministers high ridiculous salaries.

    Fellow Singaporean let us in the National Day make a pledge to vote the capitalists PAP out if we can. United we will make it.

  31. What Else 10 August 2009

    “massive amounts of cheap labour ”
    The scary thing is those from PRC are turned into citizens afetr only a couple of years.

  32. Peter Tan 10 August 2009

    Dear Minister Gan

    Please don’t duck the questions. if reducing reliance on low skilled foreign workers is not one of the solutions to better productivity. What is your solution?

    Stop giving the crap about training. You are paid millions a year with a large team of quailifed and highly pasid civil servants. You should be able to come out REAL solutions to help Singapore and Singaporeans. So far we have not seen REAL solutions just “massaged” statistics and numbers.

  33. Money rules 10 August 2009

    Current foreign workers policy benefits the Rich & Powerful, whom the government believes are the employers and benefactors for the general population. Without the big companies surviving, even jobs of security guards will not be secured.

    This is the reality of Capitalism. The Rich will get richer, and the wealth gap will continue to widen when a society is driven by a system of monetary means.

    Myself like many Singaporeans feel that we are held at gun-point when casting the vote in the 2006 GE. If the PAP government were to lose in the election,
    1) Would our CPF monies still be available for our retirement?
    2) Would our HDB prices stay as high?
    3) Would our reserves be sabotaged by the outgoing government officials?
    4) Would our defence force, police force, statutory boards, GLCs take orders from the new government? The scholars-elites know very well they would not be able to continue to reap world class benefits if they vote out their benefactors.
    5) Would the outgoing Ministers and other High Net Worth individuals continue to place their assets in Singapore, or they would simply sell down everything and move on to other countries?
    6) Would the outgoing Ministers act like our neighbour country’s ex-PM Mathr Mohd, whom would start to discredit the new government for many years.
    7) Surely our lower ranked civil servants would start worry about their iron rice bowls if they vote out the current employer.
    …..

    Frankly I felt the PAP has already laid down these foundations firmly to the extent that they are almost untouchables already.

    One example of ‘Money rules’… In the current financial crisis, the rest of world are being ‘at the mercy’ of the recovery of USA, very few exceptions. Whichever heads of countries dare to go against USA’s recovery will see their very own political career downfall, besides sacrificing their countries’ economic well-being.

    Nothing will ever change in this era of deep-rooted Capitalism, nothing. So if you can’t beat them, join them.

  34. pugdragon 10 August 2009

    They highly endorsed the use of CHEAP LABOR through those words. Which means they are non-believers of human-rights. Typical PAP.

  35. OB marker 10 August 2009

    first thing first, the advantage having foreign workers in food industries, never come back to the ppl, no?

  36. Ever wonder how come this minister joker never say something along the same line when the ministerial salaries are increased?

    Where do those salaries come from?

    Taxes and monies that should have been returned to us instead of losing in the the banks?

    How do you get the ministers to accept a much lower salary when the economy is not doing well?

    Is that not rigidity?

    I cannot believe we pay them to squeeze us.

  37. Plumber 10 August 2009

    you ask me, I ask who!

  38. blackfeline 10 August 2009

    im sorry…really up to my neck again…just want to tell this blockhead..GO EAT S#$T!!!!!

  39. complaintsonlyLAH 11 August 2009

    lets continue to complain and still vote them for more better years.

  40. tiredman 11 August 2009

    There is a straight fall in production/labour for the past few years has already proven that this minister is wrong. I think he needs to lost a GRC before he understands that people can vote him out.

  41. tiredman 11 August 2009

    He has already created a distortion years ago by implementing pro-foreigner policy, has not he? What is the distortion is he talking about here. I only need him to restore what ever is there before. Do you think he understand this?

  42. Out-of-Universe Salary 11 August 2009

    Lee Chee Wai at #5 asked “to understand the economic correlation between wages and employee productivity and whether that employee will be highly motivated and productive if you are well-paid?”

    Umm, for Sg 4 trillion dollors worth of economy, if the person employed to manage this economy is NOT paid with Out-of-the-Universe pay, that employee will Not be motivated enough, and will Not be productive…… sounds familiar??

  43. Country like Japan and Western Europe had gone through period of labour shortage and importing cheap labour was not the solution applied to solve it. For those industries that could automate like the Toyota, Nissan and Honda they invested heavily on computer controlled equipemnt. Sinkapore gahment should encourage industry to move up the technological ladder by offering tax advantages and special grants. We must be fully aware China and India had great advantage when labour issue is concerned and those industries that are labour intensive should be encouraged to move out or invest in automation over a period of time. An open debate and discussion should be encouraged to involve as many Sinkaporean as possible.It is fact and will not go away just by keeping the news from the general public. Sinkaporean had matured and better educated compare to 1959. We all know it but had anyone brave enough inform the 86 year old man who still run our country.Who is sticking their head in the sand?

  44. Bobby tan 28 November 2009

    Then I would suggest CUTTING the high salaried Civil Servants and 30 highest paid politicians is the solution since cutting low paid workers from Foreign Lands will not solve the problem…importing CHEAP AND CHEAPER POLITICIANS AND CIVIL SERVANTS SHOULD PARE with Mr. Gans view…

    Time for us to remove all these arrogant, self serving senior civil servants and 30 highest paid politicians in the world.