Xue Jianyue and Terence Lee
The Reform Party recently introduced a series of economic proposals touching on areas like minimum wage, productivity, education, foreign workers and housing.
Many Singaporeans have expressed concern about the rising deluge of foreigners coming into the nation. As such, the Reform Party has unveiled a slew of economic proposals which it hopes will “level the playing field” between locals and foreigners.
(From left — Secretary General Kenneth Jeyaretnam, along with guest speaker Leong Sze Hian. Photo credit: Terence Lee)
A key suggestion by the party is to provide a minimum wage of $5 an hour, said Secretary General Kenneth Jeyaretnam at a Reform Party discussion session held last Saturday at the RELC International Hotel.
This was among an extensive list of suggestions offered to protect local workers amidst the current liberal foreign worker policy.
The $5 minimum wage, which is “a bare minimum for survival”, would help Singaporeans bring home at least $1,000 monthly for 200 hours of work, preventing their wages, especially for the bottom 20% of income earners, from falling to levels of countries like India and China, Mr Jeyaretnam said.
However, older workers will be exempt from the minimum wage, while younger workers below 25 years of age will have a lower minimum.
The minimum wage will also not apply to foreigners in sectors which Singaporeans are minimally involved in, such as the construction and domestic worker industries.
Strong reaction against exemptions
The exemptions, however, were met with some disapproval from the attendees. A lady questioned Mr Jeyaretnam’s point about exempting foreign domestic and construction workers.
“What’s the rationale behind their exemption given that they form a large minority of our workforce and that they contribute significantly to the economy?” she asked.
“Because they’re not Singaporean,” he replied, “and there is low substitutability – given that Singaporean workers don’t work in that sector, so it is unlikely to affect the wage rates of Singaporeans and pull them down.”
Another lady was also against this exemption, arguing that by applying the minimum wage to these industries, these jobs will be become more attractive to Singaporeans, thereby lessening the dependence on foreign labour.
In response, Mr Jeyaretnam said that he would not be so certain that Singaporeans would be interested in the construction and domestic maid sector. Furthermore, if locals were to work as maids, costs would escalate and this would hurt the pockets of many families who need domestic help.
“That would be very unpopular among Singaporeans,” he added.
Another attendee approached the topic differently, arguing that employers will still hire foreign workers as they are still cheaper. Singaporeans, at the end of the day, are still disadvantaged, he added.
Addressing his concerns was financial consultant Leong Sze Hian, who was a guest speaker. He said that even if the minimum wage were applied to foreigners, it would still not solve the problem of inequality.
“If I am a foreigner, I don’t have to pay CPF. Employers still prefer to hire foreigners. If you employ a male foreigner, he doesn’t need to do NS 14 days a year. If you employ a foreign lady with lower skill and lower pay, she won’t get pregnant – and there would be no maternity leave problem.”
Therefore, policies have to be fine-tuned to give the advantage to locals, he said.
Agreeing with him, Mr Jeyaretnam added that the Reform Party is recommending an additional set of measures to minimise existing disadvantages against Singaporeans.
Protecting Singaporeans
One such measure is to bring foreign workers within the CPF scheme. They should also be taxed at a higher rate to compensate for the fact that they are not required to do National Service and attend subsequent In-Camp Training.
The party also suggested that Singaporean workers should receive more education and training to increase their productivity, as this would raise their living standards more effectively than increasing GDP growth merely through bringing in more foreign workers at a lower wage –rate to expand Singapore’s workforce.
Other measures include ensuring that employers fill positions with locals first, and disallowing employers from sacking Singaporean workers and replacing them with cheaper foreign workers. Exceptions will be made for failing business cases.
The party will also push to privatise CPF after part of it is used to fund a public health insurance scheme and a basic pension for all Singaporeans who have contributed to the fund after a certain number of years.
On top of these, the party is proposing a transparent, cost-benefit analysis of the foreign labour policy to study how they are affecting Singaporeans.
Addressing the point about exempting older workers, Mr Jeyaretnam admitted that nothing is set in concrete yet. However, the idea is that this would encourage employers to hire the older workers as they might have difficulty getting jobs.
He also highlighted other areas of concern such as education, housing and investment issues.
Housing, education and investment policies
For housing, the party hopes to make flats more affordable for first-time buyers and low income earners. Besides pushing for increased transparency of HDB accounts, the party will either require HDB to build more of the cheaper two and three room units, or request the URA to release more land for private developers of low-cost housing.
Instead of accumulating unproductive overseas assets, the party suggested increasing domestic investment and consumption in areas such as education and health which have a high social rate of return, while cutting taxes and fees for the less well off.
They include GST reductions or exemptions, reduction in HDB fees, or even abolition of school fees.
Mr Tony Tan, who is the party’s shadow spokesman for education and defense, said that the party hopes to increase investment in education beyond the current 2.8% of the GDP. The increased spending could be funded by saving in other areas, including defense, or by a smaller surplus and borrowing from reserves. This would improve quality of teaching and reduce class sizes.
The money would also go to expanding tertiary education and increase loan schemes for Singaporeans.
The party’s proposals on education, however, are still being studied and remain a work in progress. Mr Tan extended a call for interested Singaporeans to contribute to the study.
Besides the rising tensions between locals and foreigners, the party is also concerned about rising global temperatures. As such, the party will place greater emphasis on green and energy-saving technologies than present government efforts, and help local SMEs seize opportunities from carbon reduction efforts worldwide.
Privatisation of SWFs and GLCs
The party also called for increased disclosure and transparency of Government of Singapore Investment Corp’s (GIC) and Temasek Holdings’ accounts.
To enable this, the party would set up a committee to examine the possible privatisation of the two companies. Singaporeans could either be given some shares, or benefit via a direct linkage between returns on investments and CPF returns.
There is “no convincing reason for the government to continue to hold controlling stakes in most of the major companies as these are now largely mature and slow-growing,” according to Mr Jeyaretnam.
Government-linked companies (GLCs) could also be sold off and privatised, reducing the state sector in favour of focusing on the private sector as a source of growth. To prevent foreign takeovers against national interest, the government can retain a “golden share” in these companies.
For a complete list of proposals offered by the Reform Party, click here.
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Well done! Reform Party! These are good alternative policies compared to those of PAP! Cut defense spending to cut GST and education costs! Restrict foreign workers to protect Singapore workers! That’s the role of what a government should do in the 1st place! Otherwise, why should citizens need a government??
The $5 minimum wage, which is “a bare minimum for survival”, would help Singaporeans bring home at least $1,000 monthly for 200 hours of work, preventing their wages, especially for the bottom 20% of income earners, from falling to levels of countries like India and China, Mr Jeyaretnam said.
Not sure how the RP arrived at $5 an hour for minimum survival? Regular workers work 44 hours a week, that work out to about 176 to 184 hours a month. So you are saying they need to work overtime to reach 200 hrs to get $1000 a month and after all the CPF deduction, they get less than $1000.
My question is are they able to survive at $5 an hour. Anyway, it is a good start but it is still too low a rate to work with.
Great stuff, Reform Party.
The govt will not cut off the GLCs because these companies are being used to provide cushy and highly remunerative jobs for “retired” ministers, senior civil servants and their cronies
This Reform Party really thinks for Singaporeans. Should support them.
How did the Reform Party come up with the $5 amount. Is there any study or report it can produce. With the different scenarios.
The truth is the government already gave up on the bottom 20% and looking to replace them with new citizens or foreign talents. The government only cares about how much they are paid (maximum wage), why would they bother about minimum wage? Look at the kopitiam uncles and aunties, they have largely vanished and replaced by cheap options.
Things will get better before election and worst after. We can keep complaining, there are just too many things not right and so much complaints but how? Who is going to stand firm and vote against them?
Like the old man said, “When I give you food, people dont want to vote anymore!” Most Singaporeans are too timid and selfish when it comes to voting. Honestly, things in Singapore already gotten out of hands.
To: #8 So Sure,
That’s why we need to vote for the opposition parties to check the PAP! Without opposition parties, you really believe the PAP MPs will fight for Singapore citizens? If they really fight for Singaporeans, they would have curb the influx of foreign workers into Singapore and reduce defence spending and GST!
Well done, Reform Party! Make sure there are sufficient candidates in the coming GEs to form the next gahmen. Otherwise, it is just talk only. All of us will definitely vote for your party to fulfil the dream and vision of Singapore. Kudo!
Do U think this Ape-Man telling the truth, If is elected to Paliament he will sit still there 4 another 3terms, till he get this pension. like Chiam ST. Wow my bank a/c have so many golden egg,
The blinds discussing arts in the dark… Amusing.
@ (2) and (3)
I hate spam!
Conversly, there should also be a maximum wage for cabinet ministers’ salaries to ensure that they don’t splurge hard-earned tax payer’s money on excessive indulgence.
Didn’t have the chance to get upclose with youth wing president Justin Ong at the discussion… Sigh… Wasted…
I Agree that $5 per hour is quite low.europe’s minimum wage is 2000 euro per month irregArdless of work.1000 is still measly.i propose to also consider the no of dependants the worker has to determine the min wage.if cpf can be made non compulsory it would be even better as we would be able to bring more bacon home..
Have they release any manifesto?
Well said Reform Party. You defintely have the potential to do well.
I came in here to support you after reading this article… and I must say I am positively impressed.
Please keep it up!
Level playing field? How is that even possible? All they need to do is throw the power swtich on the mainboard and its game over, no internet = no means to get the message across. The house wins. Why do you think there is an “anti gahmen” site out there who keeps trying to psycho us all every 2 weeks they have to shut down bc of a DDOS or DOSS attack? That way when ithey throw the switch most of us will be so desensitized and we would just say, what to do lah! Want a level playing then it is simple keep the internet free and stop the wayang! Play fair and square, better still be honest and do it like Obama and get real
Why don’t the elderly deserve minimum wage? Mr Jeyaretnam himself will be a elderly in a few years. Is he saying that he is not worthy of minimum wage.
We need more Kenneth Jeyaretnam and Leong Sze Hian to stand out for Singaporean. They are the one really have to be voted into parliament
Bravo!! Pls do more to protect locals.
Any party who can increase the chance of me keeping my job and buy a flat gets my 100000% support.
At least we have a party which cares.
Lost my job to a foreigner PR.
Lost my girl to a foreigner PR too.
I welcome any party and any initiatives to kick their asses back home.
21) Avg Joe on December 10th, 2009 10.42 pm
Lost my job to a foreigner PR.
Lost my girl to a foreigner PR too.
I welcome any party and any initiatives to kick their asses back home.
Goodness, lost your job to a PR i can understand.
Lost your girl to a foreigner…. TSK TSK TSK!!!
Very throw face leh!
First, restrict the office of PM to only two terms.
Reduce by 50% all the ministers salary and at least 70% for the Singapore President.. Reduce the number of MPs from about 80 plus to 50 plus.
NS men, active or reservists should get free health care at government hospital for life.
Levy a 40% tax on all those with income of more than $3 million per year.
Lingo
post #22 on December 11th, 2009 12.52 am
////Goodness, lost your job to a PR i can understand.
Lost your girl to a foreigner…. TSK TSK TSK!!!
Very throw face leh! ////
no money, no honey?…
:?
An idea I hope it would be adopted by the opposition parties.
The idea I have in mind is “The right of native Singaporean to a Singapore job.”
Singaporean should not be discriminated in any job in favor of any foreign import labor if he or she is fit to work in that particular job. If a native person indicate that he or she wants to work in a particular job opening, he or she must have precedent over a foreigner.
Even if the native person is aging but fit, he or she has precedent over a foreigner, unless within reasonable ground MOM disqualifies the individual for the prospective job. The argument of merit does not directly apply between a foreigner vis a vis a local. Only between locals are they to be considered by merits. This is so because all jobs created within the border of Singapore is the property of Singaporean and no one has the right to it unless Singaporean gives up the right by not wanting it or physically/mentally not fit to do it.
This idea may also help the reform party to implement minimum wages.
Singaporean workers are entitled to minimum wages of a certain amount. Should for example a Singaporean apply to work as a maid, he or she has precedent over a foreigner.He or she is entitled to certain acceptable minimum wages and job protection but not the foreigner. There is a job right for every citizen because it involves their survival. A person has the right to eat because if the person does not eat he will die. Likewise without job, a person is unlikely to survive well, therefore he has a right to a job in his native country should it be available. Nothing can be more reasonable.
A tribunal court can be set up to preside over any litigation brought forth by Singaporean worker at a low fee of not more than $15.00 (this sum is subjected to change). Employer found guilty of discrimination has to pay the plaintiff a minimum of three months of plaintiff last drawn salary. For those without salary proof to show, it then can be based on three months of minimum wages.
The idea is applicable to new employment and it should not interfere with any foreigners already employed in the country. Employer must show proof of exhausting avenue in getting new local workers. They are allowed to employ foreigners should no local respond to their recruitment. They must advertise in a recognizable media with a sizable readership to be considered as having tried to recruit local workers. They cannot put a line at a job site that hardly has any readership as proof of recruitment. A registered employment letter is a good way for a local to deem having respond to a recruitment.
Hope you find my idea usable for your campaign. Treat it as open source, no copyright or thought or idea right. LOL …….
how about extending “Workfare” instead of minimum wage ?
If we set on …say.. $1K a month, then the scheme has make sure that Take-home pay is $1K. Take-home pay can be designed, not only hard-cash, but also cash-equivalent, such as: utility rebates, children maintenace ‘bonus’, ‘privillage’ card that gives discount on public transport (maybe NTUC n Polyclinic), and so on.
some of these scheme is already in place. so, we don’t need to revolutionize the system with Minimum Wage; but at the same time we make sure that the $1K value is really met n felt, not just figures on paper.
Singapore issue has always more about ‘productivity’; i think it’s bcoz the cost is high, and left us on production end to ‘play around’ the productivity number.
Yes, there are much needs for reforms in our social policies and economic development strategies if we going to grow and prosperous for the next fifty years. The Reform Party is certainly throwing lights to the path darkened by a monolithic governing party that have become very elitist, out of touch and unable to rally a substantial group of its citizens. As a result, there are now two great divides in our society – a big disenfranchise group of citizens that have not benefited from the economic “growth” and a large group of disengaged people, (who otherwise may be able to engage to provide alternative solutions to the challenges that we facing,) due to the sterile and oppressive political environment. Time is running out and we are behind in the group competition in developed society. The next election is critical for us to effect change and reform in our society. Otherwise we may find ourselves relegated to compete in the group with Mynmar and North Korea. For those who want to effect change, join the opposition party and institutionalise competitive political opposition in Singapore. For me, I am going to sign up with the Reform Party.
I quote, “However, older workers will be exempt from the minimum wage, while younger workers below 25 years of age will have a lower minimum.”
The purpose of having minimum wage is to protect the lower income groups, and these 2 age groups tend to be the lowest earners, ESPECIALLY OLDER WORKERS.
So how does this help the plight of older workers (who are generally cleaners) and especially since they’re the ones who need the income for medical expenses?
Goodness! These people from the so-called Reform Party couldn’t be serious, could they? If this is the best they could do, both the voters and PAP members must be very disappointed. No wonder UK is no longer an educational hub!
23) JW on December 11th, 2009 1.09 am
Today, MM Lee said, “But I’m not doing the work…”. And for NOT doing work ,he is still getting a few mil annually…
http://www.channelnewsasia.com/stories/singaporelocalnews/view/1023973/1/.html
It looks like RP is only interested in fine-tuning PAP’s neo-liberal policies that have brought our country to an economic meltdown never seen since Singapore’s independence.
What is needed is to change the PAP’s programmes and actions based on greed and corruption. Reform the PAP’s decadent economic system, overhaul it to benefit the people and not the super rich, the powerful and foreign economic criminals on the run.
RP’s approach to issues under its new leadership seems to be cosmetic. Certainly, this is the kind of opposition party that will be most favored by the authoritarian PAP bent on continuing its stranglehold on power.
I LIKE IT
vote for reform, vote for alternative, vote out pap
The leaders with mandate can propose or implement their policies.
Its up to the People to Accept.
The responsibility lies with the People to let them continue with their style or call for Change.
People Power is the basis of Democracy.
The People still holds some power in this respect.
Exercise it!
Now, gimme that election pronto.
The establishment of a minimum hourly wage system is nice sounding but not practical . Companies can use loop holes like paying the minimum wage but expecting the worker to complete the job within shorter hours , and with no overtime pay . Is the worker better off if he paid at a higher minimum wage per hour but he is only able to clock much less hours per month ? And worse if he is hard pressed to complete his work within the short time given to him .
The underlying problem of the very low wage earned by those at the bottom of the income group is the depression of wage caused by the huge influx of foreign competition into the unskilled labour sectors .
The key to solving the problem will be to put a effective limit to the influx of unskilled foreign labourers , and to reduce the quota of foreigners to singaporeans which companies can hire. This will translate into higher demand for singaporean workers and indirectly higher take home pay.
To supplement the benefits to the worker , there should be an effective union representation which could collectively bargain for a better package for the worker and his fellow colleagues in similar capacity .
However , such un-pro business measures will have to be first endorsed by the incumbent government which that will be the immensely difficult task.
As a true born singaporean who is 50 yrs old and still struggling on doing business cos of the FT & FWs influx.
One of the reasons i noticed is that FTs are easily given the approval for register a company doing business which indirectly go against singaporean by lowering prices when comes to grab business compared to Malaysian in those days.
I am against strongly to allow FTs to register so easily and compete head on with local citizens company for they know pretty well on the exchane rate and survival on minimum wage as they wish. Whatever, you do, please do in favour of our own citizens rice bowl and interests. How you do it? That’s the challenge.
Please look into this seriously.
Kudos to KJ! We are in need of selfless individual like you to be in parliament. No 2-ways about it. Check and balance is the key to move forward. We have been taken for a ride long enough and we need to get back our rights! I know where my next vote is headed. More Power Kenneth.
Based on the report here, one wonders if the new RP leadership really knows what minimum wage means in a country where the ruling elite is helping itself to millions of dollars in what it calls salary.
Our hapless workers are exploited to the hilt by big businesses, mainly MNCs from the US, Germany and Japan. The PAP, through its bogus NTUC and thousands of GLCs and TLCs, is in collusion with foreign capital to exploit the workers by having turned Singapore into a destination for cheap labour, a position PAP took on the advice of a Dutch economist in the late 1960s.
With the entire state machinery and other institutions, including the MSM, serving the interests of the ruling PAP, there is no way for any meaningful opposition to make inroads under the PAP‘s electoral set-up.. It looks like the field is only open to those who are prepared to accept the status quo and not for those wanting to change or reform the system based on greed and corruption.
Minimum wage amount is too low. Assuming 8 hours a day, 5 days a week, that is about $800 a month. Which is not enough to survive in Singapore.
$7 per hour to $7.5 is better.
That said, minimum wage should only apply to companies. Not individual hiring out. This will address the maid issue.
Companies hire people to make money while individual hire maids not to make money. I think some small self-own business (like coffee shops) should also be exempted from minimum wage but they are not allow to hire PR or foreigner (to balance it off)
PRs and foreigners should also have a form of CPF. Except that it becomes their CPF money only if they convert to citizenship. If they leave the country, the money is rolled into the CPF pool to be paid out as dividends to CPF holders.
33) nocityforoldmen on December 11th, 2009 10.18 am
“The establishment of a minimum hourly wage system is nice sounding but not practical . Companies can use loop holes like paying the minimum wage but expecting the worker to complete the job within shorter hours , and with no overtime pay .”
This is simple to fix.
Eg. Cooling off day is the same name used for singapore and beautiful Australia.
But are they the same thang? Aussies no allow any media.
The problem you suspected can be fixed by have a ‘min wage’ system that includes total renumeration package as the calculation for min wage. If required, call it by another name. Call it Min Renumeration.
Tell me this does not fix your problem.
So dang easy.
I wanna cry.
‘Workers party’ is a name.
It suggests a party for workers.
Is it?
or
is it not?
What achievements have they made to fight for workers’ welfare? min wage? return the wage cuts workers absorbed for so long?
What does worker party stand for?
I go for Reform party. At least another option to try.
Ya , me too, I wanna know too!
After so many years, what achievements for the people have WP made?
Name me.
RP for me!
Dear Opposition parties,
Do not take the 33.3% for granted.
Treat this coming election as your last one.
Not that it have to be.
The influx changed the demographics. Rules have been changed. Will there be more rule changes? Why not?
Give us not just a good fight. Give us the fight of your life!
Dear TOC,
Would TOC be interviewing the other members of the Reform Party.
Mr Edmund Ng, 36 CEC member, Chairman
Mr James, Teo Kian Chye. 50 CEC member, Treasurer
Mr Tony, Tan Lay Thiam (陳禮添), 39 CEC member
http://thereformparty.net/index.php?option=com_content&view=article&id=42&Itemid=46&lang=en
The government will continue to import as many foreign workers. This is because the revenue collected, in the form of levies, amounts to hundreds of millions per MONTH. Employers will continue to clamour for more foreign workers because of the “kick-backs” paid to them by these workers which ranges from S$5000 to S$10000 per worker employed.
#42 tonites gonna be a good nite
i think TOC may have found a slogan for the upcoming general election in the form of this poster’s words:
Treat this coming election as your last one. (Not that it have to be…)
THE INFLUX CHANGED THE DEMOGRAPHICS.
Rules have been changed. Will there be more rule changes? Why not?
GIVE US NOT JUST A GOOD FIGHT.
GIVE US THE FIGHT OF YOUR LIFE!
Come on all Singaporeans! Where is our sense of urgency? This coming election or never, i say.
I applaud these first steps by the Reform Party to offer alternative policies. I do however, encourage them to be prepared to defend their arguments against the expected onslaught of criticism from the PAP. You can be sure that the PAP ‘war room’ is already dissecting all these proposals.
How can the Reform Party policies better than PAP where PAP can easily attract the best, talented ministers, poltical scretaries and scholars to work for them at extremely well paid salaries, allowances and other employment benefits and status.
It is good to plan new policies and form new government. There is no better time than this term to quickly set up a group of team to formulate a social-friendly policies where singaporeans see more benefits to set up family here. PAP policies have failed many Singaporeans from across the board, the side effect can be clearly seen in the next term. To avoid guilt, PAP ministers wanted so desperately to be voted in to avoid answering to Singaporeans such side-effects and failed policies. Once they are voted in power again, they will not answer to justice. We must not let these MIWs off so easily for the disaster they created.
If people expect that the opposition support base have grown if not will grow in the next election, they are only half right.
1. absolute number increase does not necesarily the overall percentage gain will increase. Simple to understand right? The reason is the Sum of all citizens have changed. New citizens are here to stay as the only way they can go out is when they give up citizenship again and eg. become a new citizen of another country. Either that or by natural mortality.
2. imho, if the opposition does not regard this fight as they last, they more likely will live to regret. Why give chance for regret? Make this your last attempt.
They have not done ALL that they can for simple fact that the Apathetic population is still not awakened. The Alternatives need to awaken these in order to win.
just my humble opinion.
peace
34) mike
“As a true born singaporean who is 50 yrs old and still struggling on doing business cos of the FT & FWs influx.
One of the reasons i noticed is that FTs are easily given the approval for register a company doing business which indirectly go against singaporean by lowering prices when comes to grab business compared to Malaysian in those days.”
Let foreigners set up companies in Singapore, by all means — but perhaps the organisation should have a Singaporean partner, who can be paid a nominal income or fee for the role.
This way, foreigners will recognise that part of the cake they make by doing business in Singapore should go back to Singaporeans.