We refer to the article “Singapore ‘can’t have First World economy, Third World costs’: Lim Hng Kiang” (Straits Times, May 6).
Cannot be First World economy with Third World costs?
It states that “”We have to acknowledge that, over time, Singapore cannot be a First World economy with Third World costs. There has to be some balance.”
Rising costs have been an ongoing issue. The Budget debate in Parliament in March had included intense discussions about rising costs for businesses here, with soaring rents and utilities, increased wages and worker shortages among the complaints.”
Third World wages?
- Why are we still paying Third World wages – of as little as $5 plus an hour to Singaporeans, and as little as $18 a day to foreign workers, when the cost of living is one of the highest in the world?
So many lower-income workers?
There were 207,100 residents earning below $1,000, 416,900 below $1,500 and 627,800 below $2,000.
Since the total workforce was 2,004,600 in 2012 – it means that about 1 in 10 earn below $1,000, 1 in 5 earn below $1,500 and 3 in 10 earn below $2,000.
As to “worker shortages” and a tight labour market – why is it that the seasonally adjusted unemployment rate of Singaporeans has increased from 2.8 to 3.0% in the last quarter?
Shouldn’t the unemployment rate be coming down if we have a tight labour market, instead of up?
With regard to “increased wages”
- Negative real total wage change?
According to the Ministry of Manpower’s (MOM) web site, the real annual total wage change (excluding employer CPF) from 2008 to 2012, was -2.4, -1.0, 2.7, 0.1 and -0.8, respectively.
This works out to a cumulative real decrease in wage change of about -1.5% or -0.29 per annum, from 2008 to 2012 – A negative real total wage change for the last 5 years.
Real income growth?
Real median income change from 2008 to 2013 was only about 1.0 per cent per annum
… for the 20th percentile – the real change per annum for the last 10 years was only about 0.3 per cent
Real growth in graduates’ starting pay negativ?
… The real growth in university, polytechnic and Institute of Technical Education (ITE) graduates starting pay has been negative in the last 7 years or so.
The rhetoric seems to fly in the face of the statistics!
SY Leong and Leong Sze Hian