Leong Sze Hian –
After adjusting for historical inflation of about two per cent, the annual real wage increase may only be about 0.6 per cent.
I refer to the articles “Economy set to grow 13% – 15%” and “100,000 foreign workers needed: PM” (ST, Jul 15)On 15 July, Prime Minister Lee Hsien Loong said,“If we don’t allow the foreign workers in, you are going to have overheating (in the economy)”.
I am somewhat confused by this. Wouldn’t allowing such a large influx of cheap foreign labour contribute to overheating the economy even more?
With all the good news about a booming economy and job market, the fact remains that for the last nine years, from 2001 to 2009, real wages increased by only 1.4 per cent per year.
In a Straits Times report on the same day, NTUC Deputy Secretary-General Halimah Yacob said “wage increases of between 3 and 4 per cent are being anticipated”. (“Higher growth but not higher wages yet”, ST, Jul 15). .
With inflation running at a 14 month high now at 3.2 per cent in May, we could end up with a third consecutive year of decline in real wages, As I understand it, wages do not include the employer’s CPF contribution. The employer’s CPF contribution rate was decreased from 16 per cent to 13 per cent in October 2003, which was partially restored to 14.5 per cent in July 2007.
After factoring this in, does it mean that in effect, the increase in real wages may even be less than the 1.4 per cent per annum, from 2001 to 2009?
According to the Ministry of Manpower’s Singapore Yearbook of Manpower Statistics 2010 – Active CPF Members By Monthly Wage Level, there were, in 2009:
- 65,141 people earnings less than $400
- 146,080 earning less than $800
- 74,568 less than $1,000
- 128,611 less than $1,500.
Taken together, this means that there were a total of 464,400 or almost 30 per cent of all active CPF members, earning less than $1,500.
As the data excludes self-employed persons and inactive CPF members (those who did not have at least one employment CPF contribution paid for him for the current or any of the preceding 3 months), if we include these excluded persons, how many in total earn less than $1,500 in Singapore?
One of the targets of the Economic Strategies Committee (ESC) is to raise the wages of the average Singapore worker by one-third in the next decade, from a median wage of $2,400 today to about $3,100 in 10 years.
The Finance Minister said that to achieve this, Singapore must have workers with top quality skills and make the island one of the top liveable cities in the world. He also said Singapore has never had it as good as now, and for the next five to ten years.
Even if workers heed Mr Tharman’s call to “raise our game”, the targeted reward of a median wage of $3,100 in 10 years time only works out to an annual increase of 2.6 per cent.
After adjusting for historical inflation of about two per cent, the annual real wage increase may only be about 0.6 per cent.
This is even lower than the 1.4 per cent per annum real wage increase from 2001 to 2009, according to the Ministry of Manpower’s Labour Market Q1 2010 report.
Speaking at the same dialogue session with the Finance Minister, the Manpower Minister said “productivity is also a partnership. It’s not just about a company making efforts, it also involves the workers, so workers must take responsibility for their own skills upgrading”.
I would like to suggest that the ESC sets it sight higher for wage increase. Otherwise, why would workers want to upgrade their skills, be more productive, aspire to higher standards, and make Singapore one of the top liveable cities in the world, when the reward at the end of the day, is just a 0.6 per cent increase in real wages?
In light of the last two years of negative real wage growth and current inflation running at a 14-month high of 3.2 per cent in May, workers may direly need a moral boost in the form of higher expected wage increases in the future.
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Pictures from Singapore Mind.
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Cartoon by Joshua Chiang.
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correction
since it is talents & positive, it has no reason of not going up further going by their rationale.
100,000 instant voters, long live PAP
/So a further 100,000 foreign talents would effectively mean bringing Singapore standards up to another new height in this highly competitive world market./
yes, you need to keep your illusion going up in order to sustain this cloudy myth. when it collapses, it will collapse with a bang.
vertical expansion is possible as you can always build up to 100 floors or down to 3-floor basement, horizontal expansion is constrained by the limited ground space that you have. we do have flood today, wonder it is still due to choked drain or choked reasoning.
It is an open secret that Temasek Holdings have heavy investments in private properties in and out of Singapore.
A huge pie of our GDP for the past 3 quarters had been due to the private real estate boom backed by monies from TH. It is so huge that financial transactions to support the sale of any property comprised a significant portion as well.
This is the first time such a thing ever happened in Singapore.
It is by no less an admission from MOF that they have used all tools necessary, financial, monetary and even land policies in order to steer the GDP into an upward trend caused by fear and uncertainty 2 years ago – a possibiliy of stagnation due to the financial crisis.
But land policies were skewed not for the benefit of the GDP but to save TH’s investments into private property which already suffered heavy losses overseas.
Something needs to be done to stem further losses and prevent the global catastrophy to becoming a local one.
It therefore never came as surprise, it was in fact anticipated that the government will control HDB supply as part of a new land policy. By doing so, they cause a demand shift to the private segment dominated by TH.
TH had amassed a large property inventory that not only do they need to control HDB supply but also import more foreigners to further boost demand and price. It is an act of desperation for the future of our reserves rely hugely on it.
While this is widely known amongst economists in Singapore, the government had never been forthright with it to the public. What got me disappointed though is the outright denial.
The truth is that the Singapore economy has not seen growth from the previous quarter. The 15% is due to the averaging of the results starting with the 30% spike in the early part of the year which everyone know we can not sustain.
It got everyone surprised that the media and government will proclaim that the 15% is phenomenal and unexpected.
The irony of the matter is that the GDP boost was due to one-time US stocking momentum and private property, both of which do not contribute to new and high quality jobs.
But the GDP numbers and the mysticism which surrounds it were instead used as opportunity to further convince the public that more foreigners are needed.
50% as source of cheap labour.
50% to beef up the property market.
what i really like to know is, is it the fastest flooding per sq inch in the world? i mean the recent several floodings said to be 50 year freak incidents.
S’poreans need quality jobs that pay above inflation to sustain themselves & start families. i dun see how the modest salaries of the service industries (retail, hospitality, F&B) & security industry can take S’poreans’ living standards to the next level.
legislation regarding fair employment needs “to up their game”, otherwise the poor & downtrodden (employees) will never see eye-to-eye with rich & powerful (employers). surely, if salaries isn’t going up so soon, laws to ensure social stability ought to kick in sooner.
Of course, when our government says that we should “up our game”, they mean that we should be cheaper and better.
The exodus of capital from Singapore in the early 21st century to places like China and India prompted this ever famous motto – why go to China and India if we can bring China and India to Singapore?
In a globalized world, we can never have double standards. Labor migration is a reality we have to face. But what is also brings is competition in the labor force.
The basics of the matter is that a Singaporean with a poly diploma can never compete with an import with a university degree.
The government had instead turned away from this reality and had opted to “re-training” which the fact of the matter is – does not contribute to anything but allow a Singaporean to hop from one job to another without a long-term direction.
I had participated in a “lobby” to allow more Singaporeans to enter local Universities. UK, Australia, US or Japan are never really an option for most Singaporeans.
But the scholars in our government bring with them their KS mentality – they think that the masses should never be as good as them.
It was LKY himself who admitted that some of his education policies which are the hallmark of our entire educational policy have failed. In summary, there are too many MUNDANE restrictions why a Singaporean is forcefully denied entry into a University. One is race, 2nd is language, 3rd is past failures in life, and money is just 4th.
Convert Foreign Trash to PR/Citizens=Replace Singaporeans Opposition Votes=More Taxes=Higher GDP=Higher minister’s Increment=FCUK care Singapore=Bankrupt country=TRAITORS!
No brainer=If still vote MIW (for whatever reasons right or wrong)=All really truly deserve to die!
hey nonesense,
native singaporeans majorly have been voting for them until now.
your cry for swing votes cannot have any effect on persistent native citizens who learn to accept many things.
@Mee Siam Lots of hums : 17 July 2010
It is not that the “native majority have been voting for them until now.”
It has more to do with the fact that the Pro Alien Party usurped the electoral process to give themselves a headstart, and an unfair advantage over all other Alternative Parties – as well as to deprive Singaporeans the RIGHT TO VOTE.
Singapore’s Electoral and GRC System has been studied and analysed by others; and the conclusion is that it is clearly a deliberate act to disenfranchise Singaporeans of the constitutional rights to participate in an Election. [See Ref #1]
Clearly, is it necessary for a small country with a small population requiring so many Members of Parliament – whom no one get to meet except when election draws near ?
In the last 2006 Election, only 1,123,273 Singaporeans were able to cast their votes out of a Register List of 2,117,840 – and all residing on this Little Red Dot.
Compare this with the Indonesian Election of 2009, when 104,099,785 votes were counted from a Register List of 171,265,422 Indonesians spread out in Single Constituencies across 1,000 over islands that make up Indonesia !!!
Clearly, the Pro Alien Party had practically usurped the election process when they received only 748,130 votes from a Register List of 2,117,840 voters – which makes their percentage only 35.33% and not 66.6% as they so proudly claimed.
.
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Ref #1 – “Election Strategy and Ethnic Politics in Singapore” – Joel S Fetzer
http://www.tfd.org.tw/docs/dj0401/135-154-Joel%20S.%20Fetzer.pdf
Ref #2 – “Lawyers’ Rights Watch Report on Rule of Law in Singapore”
http://www.lrwc.org/documents/LRWC.Rule.of.Law.in.Singapore.17.Oct.07.pdf
The bottom line is, the top make more money, the people running the government get more pay. No matter how little the bottom people are paid or suffer, they don’t see it and they don’t care.
In terms of vote, you have serial number for voting slip. The re-draw lines for GRCs all the time. Many people think, I still can survive lah, why vote for change? The KS and self defeating thinking will make many still vote PAP.
There are also lots of walk over because voting in Singapore is simply not democratic.
Ben 17 July 2010
If FT is so god damn good, why not replace some of our super scale ministers?
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Barack Obama could have the privilege of Bill Clinton’s advice. Both are citizens of America.
Could Singapore hire Bill Clinton to be its minister? Even you pay him twice of what a Singapore minister is earning, he will tell you not to trouble him with your country’s internal affairs.
Can Singaporeans swallow the pride of having Hillary Clinton to be their country’s President? You want her to hold the other key to your national reserves?
gemami
You guys have really lost it with the people and you are never going to find yourselves until and unless you are ready to step down a little – just a little.
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How could that be? Every General Election over the past decades, the same government has been voted back to office with overwhelming majority.
@Atobe,
you cited SMC as reason. Though some may perceive this as an issue, the fact remains, the citizens have the duty to feedback if they really cannot accept such a system.
50 years. 50 years have past my fren!
You cannot ignore this Statistic standing nakedly infront of you.
You simply cannot.
Are you saying majority native citizens disapprove this system and still accept it? Are you hinting there is weakness in native citizen’s mentality? 1st world highly educated , well travelled citizens some known to possess one or all of the the 5 Kia’ism ?
Hahaha, i hope you can debate on my reply.
Really, no opposition can or have been able to give a strong rebuttal to this point i raised.
What is opposition doing? Why for 50 years you are still unable to address this issue? Have you met the expectations or waiting for people to change mentality?
I hope this post is not deleted. But if you can out-logic me, i gladly will concede defeat. Lets be gentlemen.
Actually, i really like to know the answer.
Minus
a.The novelty effects of the 2 gambling dens.
b.The effects of the engineered property bubble–thru Ftrash imports.
c.Very low base effect of our worst recession year.
d.Mass Import of 3rd world labour
WHAT HAS THE LOCAL ECONOMY GOING FOR IT.
Non of the above is sustainable.
Trying very hard to win the election by artificial boost.
My Views, 18 July 2010
the MIWs have tweeked the system to guarantee their place in high office.
quote: “Every General Election over the past decades, the same government has been voted back to office with overwhelming majority.”
the overwhelming majority in this case is those who can vote, not the majority of the voting population. you cannot even make a distinction between the 2.
walk-over is a nicer way to put it than democracy is being robbed right infront of you. in walk-overs, a vote of confidence (or non) more accurately reflects the sentiment on the ground.
50 years is just about right for a party that once had people who really cared to turn into a totally different one. i dare say 30 years ago PAP isn’t like what they are now. though i do sympathise with the few within the party who still care about the common folk.
Mee Siam Lots of Hum, 18 July 2010
for every GE, there are people who have come to pass since the previous GE & new eligible voters. so in truth those who voted say 30 years ago (dun say 50 years loh) may not be around anymore, same goes for the people who once helmed the various ministries.
also, are you saying that those well-educated & well-travelled (former) S’poreans have not migrated? not even 1? if S’pore is such a vibrant & liveable city, why they left?
if our dear govt is that transparent, compel HDB to give the detail breakdown of cost/profit of HDB flats over 20 years, true blue S’poreans/PRs/new citizens voting in this upcoming GE lah.
:P
My Views 18 July 2010 gemami
How could that be? Every General Election over the past decades, the same government has been voted back to office with overwhelming majority.
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you meant the pap win by a 1-2-1 combat
or 6 gays guys hold hands with each other to fight 1 voter? overwhelming majority indeed..next erections laulee can even roped in his ailin spouse..his beautifool daughter..his 2nd son and the whitehair grandson in tanjong pagar GRC
sured win 1..if not i chopped off YOUR corkhead…
even dr chee sister only hav 4 dancin poliswomen to dance with her in honglim park…
My Views 18 July 2010 Ben 17 July 2010
Can Singaporeans swallow the pride of having Hillary Clinton to be their country’s President? You want her to hold the other key to your national reserves?
NOPED! i rather hav hoching to hold the keys to our reserves…
imagined this scenerio..if hilary clinton hav the vault..in times of floodin..you know how many gurhkas MAS hav to mobilse to escort the money to gentin highLAND?
but the fact remains, out of those who voted, 66% chose them.
I think the only way to know the truth is to interview the 66%.
personally, i feel that there is no need to fight for Change in Singapore.
singaporeans must be held responsible for their actions and decisions. In the long run, they will have to be affected by the policies. ‘Affected’ can mean in a good way or bad way.
for me, i give up long ago. why make our lives so miserable by feeling like we are affected by the 66% people’s decision?
just give up and focus on earning a living. Forget about politics and voicing up. Let the majority have what they want.
I will not spend any more time and energy on political discussions.
If can, i will surely migrate. I am sick of all these.
Hi, I’m not a degree holder & i’m not from economics nor finance stream. Some of the comments mentioned that what the government doing now is unsustainable. Can someone clarify with more details?
I’m only ITE. Wish to learn more & hear more 3rd party opinion….
Dear Beginner & Learner,
You can read a reply from an opposition party leader on his views of the economic situation below:
Q: What is your opinion of Singapore’s economic growth during the early years and if the current economic model for growth is sustainable in future?
http://kelvinteowrites.wordpress.com/2009/11/25/kelvin-teo-catches-up-with-mr-goh-meng-seng-of-the-national-solidarity-party/
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Other opinions or technical economic terms like inflation, GDP, real wages etc can be googled online if you like to read on for further information. Enjoy your reading : )
My Views,
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I suspect you’re doing this on purpose. It is not as if you haven’t read enough to know how each election is manipulated by the PAP to ensure that it not only have a stranglehold on power but to use the opportunity to identify and destroy every worthy opponent who has the guts to stand in its way.
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Like so many have already pointed out, the GRC system, the control of the MSM, the dearth of opposition politicians due to the underhandedness of the PAP resulting in the under-representation of a democratic process, are some of the clear cut reasons why people like you can laud it over the rest of the voters and claiming that the PAP has the mandate to govern because of the ‘overwhelming’ support of the people.
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I am sure you would agree that a primary school kid would even know that the maths here is wrong when close to 40% of the people had voted against the PAP but are represented by only 2 outright opposition members of parliament. If you cannot see beyond this logic, then you are nothing but someone who is out for an argument with both palms cupped on your ears.
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Taking this a little further, I ask you to see the danger from your comfort point of view. Yes, people like you who are staunch supporters of the PAP ought to take note of the danger that lies before you.
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Imagine at the next GE, the people are fed-up enough to cast their votes for the opposition, any one of them and every opposition who stands against the PAP incumbents get voted in; what do you think will happen next?
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You guessed it, we will be in for some torrid time. You will be in for come sleepless nights for at least the next five years.
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This is not what Singaporean wants. What we want is to assimilate the opposition in at a gradual pace, to allow them to understand and learn how to govern. The ultimate intention is to put in place a two-party system where the people has a choice, a choice to ensure that whichever government is in power, it will have the interests of the people first.
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This is how Singaporeans are waging war against the one-party system, no less because of the elitist mannerism of this current PAP regime. In its drive toward making Singapore the epicenter of financial management, the people have been left on the sides, especially those who do not fit into their scheme of things.
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The loss of support from Singaporeans towards this vision is replaced by support from the foreign legions, touted as talents.
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This is not the kind of governance we should be expecting nor should we clamour for. We need a government which is attuned to our basic needs, the needs of humanity, the need to be loved and cared for, the need to choose what we think is best for ourselves and to live the life that we so choose. All things else are secondary to this, and we will put this message across loud and clear at the next GE or the next or the next. It will happen, that can be assured.
FEAR Factor, someone knocking at your door past midnight,
Man in Blue, looking at you, knees tremble,,
Bogeyman, looking over your shoulder, look what the brit has got at 8am on sunday morning, they don’t even have the curtesy to wait for next working day,,,
I think Gemami’s comment is valid especially on the point of 2-party system of balance support; eg PAP Team-A vs Team-B. Is it going to happen? No yet, but it sure will after the old leaders are `retired’. So just be a bit patient lah.
To be fair to PAP, it has brought many good years to this country despite it has done many mis-steps lately… upset that ministers `refused’ or slow to owned up the mistakes; a sign of un-accountable to the ppl.
Can u have some positive things to say. Y always try to put things positive in a negative light. If u so good then maybe u can help the poor or disadvantage
“Economy set to grow 13% – 15%” and “100,000 foreign workers needed: PM”
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Yes, the news is very positive for the foreign talents.
I hope the good PAP can use some of the GDP growth to share with poverty stricken citizens who did not see wage increase for many years but only non-stop inflation for goods, services and taxes.
walamak,
hdb price so high, how to cope?
$alary increase as much?
omg, very tough leh nowadays
but see ppl buy new cars
where they get the $ huh?
look at ourself, still take bus/mrt/walking
walamak
so many sporean have HDB and its prices are so high. of course have lots of $$..what u want…..HDB half price??
Gemami,
I think your concern about freak election result is over blown. Even if that happen, the government machinery is now institutionalised – permanent scretaries (which is supposed to be non=political) are the ones running the day to day operation of all ministries – new political leadership just need to set the direction – like reversing all the flawed policies.
Let’s be fair to Hillary. Prior to joining politics she managed to turn a $10,000 investment and turn it into a $100,000 nest egg within the year. I think she played cattle futures. Of course lots of people said that this was all done on insider trading since Bill was already the governor of Arkansas.
Compare that with Ho Ching who is the wife of the Prime Minister (Always out ranks a governor) and managed to lose lots of money.
Furthermore to Hillary, she played her own money…. .