I support the recommendation by Professor Lim Chong Yah to raise wages by 50% over three years for the grossly under-paid workers. For those earning $800 a month, the revised wage is only, $1,200, which is still below any sensible minimum wage required to meet the high cost of living in Singapore. Professor Lim's suggestion is quite moderate.
I disagree with the view of a Minister who claimed that the revised wage will lead to structural unemployment and a loss of jobs in Singapore. This statement is rhetorical and is not supported by economic common sense.
There are many domestic jobs that have to be done in the country. Raising the wages to a minimum wage does not result in a loss of jobs, except through mechanization. There are many jobs that have to be done by people and cannot be replaced by machines. Any such loss of jobs will be minimal.
There will be loss of low paying, manufacturing jobs. Most of these jobs are carried out by foreigners, and not by Singaporeans, who cannot afford to survive on these wages. The removal of these jobs, and the reduced reliance on foreign workers, will help to reduce the over-crowding and demand on our public infrastructure.
There will be some loss of jobs, but the overall impact will be positive for Singaporeans, if Professor Lim's suggestions are implemented.
There will be an increase in the cost of living due to the higher wages. However, the impact is likely to be small, as the wages at the lower level do not form a large component of the total cost. The excessive profit margin and earnings of the highly paid managers have a bigger impact. Professor Lim has suggested a freeze on the earnings of the higher paid people.
It is also likely that the cost of rental, which now forms a significant proportion of cost, will reduce when wages are increased. Consumers will not pay the higher prices, so rentals and profit margin will have to moderate to make up for the higher wage cost.
I am disappointed that our ministers, who earn astronomically high salaries, continue to oppose moves to give decent wages to workers and reduce the big income gap in Singapore. It is time for Singaporeans to speak out against these bad policies.
I disagree with the view of a Minister who claimed that the revised wage will lead to structural unemployment and a loss of jobs in Singapore. This statement is rhetorical and is not supported by economic common sense.
There are many domestic jobs that have to be done in the country. Raising the wages to a minimum wage does not result in a loss of jobs, except through mechanization. There are many jobs that have to be done by people and cannot be replaced by machines. Any such loss of jobs will be minimal.
There will be loss of low paying, manufacturing jobs. Most of these jobs are carried out by foreigners, and not by Singaporeans, who cannot afford to survive on these wages. The removal of these jobs, and the reduced reliance on foreign workers, will help to reduce the over-crowding and demand on our public infrastructure.
There will be some loss of jobs, but the overall impact will be positive for Singaporeans, if Professor Lim's suggestions are implemented.
There will be an increase in the cost of living due to the higher wages. However, the impact is likely to be small, as the wages at the lower level do not form a large component of the total cost. The excessive profit margin and earnings of the highly paid managers have a bigger impact. Professor Lim has suggested a freeze on the earnings of the higher paid people.
It is also likely that the cost of rental, which now forms a significant proportion of cost, will reduce when wages are increased. Consumers will not pay the higher prices, so rentals and profit margin will have to moderate to make up for the higher wage cost.
I am disappointed that our ministers, who earn astronomically high salaries, continue to oppose moves to give decent wages to workers and reduce the big income gap in Singapore. It is time for Singaporeans to speak out against these bad policies.
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