Raising wages to address rising costs not the right solution
Raising wages to address the issue of rising costs may be an enticing option but that is not the right solution, said Acting Manpower Minister Gan Kim Yong.
He said adjusting wages upwards to meet rising prices would only result in a “price-wage spiral” and Singaporeans should look at the bigger picture.
“What is more important is for us to have a realistic expectation of wages that reflect the underlying economic strength of our industries and also of our productivity. That will allow us to ensure that our economy will be able to sustain its growth momentum,” said Mr Gan.
Industries urged to give foreign workers proper pay package
Industries need to provide proper remuneration and recognition to retain foreign workers in Singapore especially in the construction sector, according to Senior Minister of State for National Development, Grace Fu.
She was responding to media queries on manpower shortage in this sector, which is expected to remain robust for the next two years.
Ms Fu also gave an update on what the government is doing to help meet the demand for workers. This includes setting up more skills training centres overseas.
She said: “By doing so, we’re expanding the (pool of) workers, but at the same time, we want to make sure they are well-trained before they come over. So that’s really striking a balance between having more supply and at the same time, ensuring that some minimum standards apply.
No wonders the locals are getting frustrated and leaving the country. The government actually cares more about the foreigners than locals.