How to read the chart:
Why Are Singaporeans’ Wages So Low?
(1) The Government Owns Some of the Largest Singapore Companies
- By some estimates, the government owns 40% to 60% of the Singapore economy.
- Some of the largest companies in Singapore are Singapore companies. (http://www.asiaone.com/Business/News/Story/A1Story20120423-341447.html)
- The government owns Temasek Holdings. Temasek Holdings own majority shares in these Singapore companies.
- Singapore is the main market for the Singapore companies (their international forays haven’t been very successful).
- To maximise earnings, Singapore companies need to earn from the people in Singapore.
- To maximise earnings, companies need to increase prices, and SUPPRESS THE GROWTH OF WAGES.
(2) The Increase in Prices is Faster than the Growth in Wages
- Prices increase faster than the growth in wages, so the real growth in wages is lower, or stagnated (source link).
(3) Singapore Workers Have No Collective Bargaining Power for Their Wages
- The government controls unions in Singapore. Unions are not independent.
- Unions do not protect Singapore workers. Singapore workers do not have collective bargaining power.
- THUS NO ONE FIGHTS FOR WORKERS’ WAGES & WORKERS’ WAGES REMAIN LOW.
(4) Government’s Policy Sets Low Wage Limits to Employ Foreigners
- The minimum wage limit for companies to employ work permit holders, S Pass holders and Employment Pass holders is $800 (for the Singaporean worker), $2,000 and $3,000 respectively. This is the de facto minimum wage for workers with lower qualifications, diploma holders and degree holders, respectively. The wages of Singaporean workers are depressed to this level.
- Companies will choose to employ foreigners who are willing to accept a lower wage.
- SINGAPOREAN WORKERS WILL HAVE TO ACCEPT A LOWER WAGE to be competitive and employed.
- This is also why wages have not increased beyond this level.
(5) The Real Reason Why the Government Wants to Increase the Number of Foreigners
- The government wants to increase the number of foreigners to increase the size of the market – double the market size.
- This will increase their revenue and profits.
- The money earned by Temasek Holdings go into the reserves.
- But do we really know where all the money goes to?
WHY IS IT OUR GOVERNMENT PAYS THEMSELVES THE HIGHEST SALARIES IN THE DEVELOPED WORLD?
AND WHY IS IT OUR GOVERNMENT PAYS SINGAPORE WORKERS THE LOWEST SALARIES IN THE DEVELOPED WORLD?
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