Employers should not raise salaries to help workers... it could worsen inflation

[Tckrto]

Singapore could face another round of inflation if firms raise wages

By May Wong, Channel NewsAsia | Posted: 09 July 2008 2154 hrs

[image]http://www.channelnewsasia.com/imagegallery/store/php6lMXZT.jpg[/image]

Tharman Shanmugaratnam

 

SINGAPORE : Finance Minister Tharman Shanmugaratnam has warned that Singapore could face another round of inflation if companies increase wages to help workers cope with the higher cost of living today.

 

He said this will also affect Singapore's competitiveness and the ability to create jobs.

 

Mr Tharman was speaking to some 500 workers at the Singapore Industrial and Services Employees' Union dinner on Wednesday evening.

 

Higher rice and oil prices have led some Singaporeans to call on the government to set the tone by raising wages.

 

But Mr Tharman said such short-term measures are not prudent. Instead, he said the government has provided assistance to help Singaporeans deal with the higher cost of living.

 

These include S$500 million in GST Credits - to help citizens cope with the increased Goods and Services Tax - and special bonuses for senior citizens.

 

Mr Tharman said Singapore also addresses the problem of inflation mainly through its exchange rate policy. Since the beginning of last year, the Singapore dollar has appreciated by 11 per cent against the US dollar.

 

However, the minister said there is a limit to how much Singapore can allow its dollar to rise to fight inflation. Mr Tharman said if Singapore dramatically strengthens its dollar to offset the higher prices, it will instead hurt economic growth badly.

 

He said oil prices have increased by 50 per cent since the start of this year. And it has gone up by about 100 per cent compared to a year go. Food prices globally are now up to 60 per cent higher than one year ago.

 

Mr Tharman cautioned Singaporeans to brace themselves as oil prices may increase further.

 

He said, "We expect inflation to be between 5-6 per cent on average this year, with inflation being lower towards the end of the year. We also expect inflation in the second half of the year to be lower because the effects of last July's GST increase on inflation will wear out.

 

"However, the recent sharp increase in global oil prices will add pressure on inflation. So we are monitoring this and the impact on inflation closely, and will decide if inflation forecasts for this year need to be revised."

 

Looking at the global situation, Mr Tharman said the weakness in the US economy could extend into next year. But he maintains that Singapore can expect Gross Domestic Product growth to average between four and six per cent this year.

 

Mr Tharman said the lasting solution to inflation is to continue with efforts to help workers upgrade their skills and earn better wages.

 

He said it is also important to help experienced, mature workers stay employed and help home-makers get back to work. This will not only increase the household income, but help improve Singapore's tight labour market. - CNA/ms

 

 

 

Source: http://www.channelnewsasia.com/stories/sin.../359295/1/.html

 

 

YEAH! MORE GOOD YEARS AHEAD~!

MIW CAN RAISE SALARY BUT WE CANNOT.

[Silver_z]

I fark his whole family die!

[Apollo]

yesh!

 

u peasants.. shame on u.

 

ur wages causes inflation ok！ not oil prices, dun blame the cartel. dun blame housebrand toylet paper, dun blame rice fr ....watever, it's ur wages tat's killing the economy.

 

tsk tsk.. better sober up and ask for a pay cut when u get back to office tomolo.

[Rncw]

lets get the dogz from SPCA to phuck him real good..

 

i think gahment should have pay cut of 50%, just to bring down the cost of living.

[Sosaria]

He claims that increase wages can worsen inflation...

 

But then he also claims "continue with efforts to help workers upgrade their skills and earn better wages." --- workers get better wages, but this way doesn't lead to more inflation???

 

What talking?? Not making sense

[Rainman]

All becos of the oil..... Can some genuis think of an alternate energy?

 

like plant an LEDs ring onto our chest, so we can fly? lol

[Beei]

Along, i thought it was because of their own high salary and the high salary they use to attract foreign 'talent' is causing the inflation.. So now it is our low salary which is causing the inflation.. Bravo.. 3 cheers for ministers..

[Getzoooom]

No wonder we facing inflation... Singapore's biggest employer raised they top earners salary by 21% not long ago... and one of them is also botak who looking like the want in the photo talking kock.

Edited July 9, 2008 by Getzoooom

[Tckrto]

wah bro so fierce ah? I oso cursing and swearing but i would rather vote "wisely" in the coming elections like the quote below

 

GE2011, even if opposition fields a

 

dog, I will vote for it!!

 

At least it won't ask for more $$

 

thats why this scenario will occur!!!

[Apollo]

it make sense wat... u see crybaby swee swee, cry when table tennis gurls lost.. not only got promoted, also payrise.

 

tat one got listen and upgrade skills. so he deserve better wages.

[Rncw]

he's not making sense because his head to shinny already...

 

i curse his offsprings to beg for life along the ganges river

[Tckrto]

it oso makes sense for me to vote for a dog if opposition puts one in

[Apollo]

Along, i thought it was because of their own high salary and the high salary they use to attract foreign 'talent' is causing the inflation.. So now it is our low salary which is causing the inflation.. Bravo.. 3 cheers for ministers..

 

yesh u... u finally see the light. dun u agree they deserve another raise?

[Check13]

TA MA DI!

 

economy bo hor, also say must accept lower wages

 

economy hor, hor until inflation, also say must accept lower wages

 

CCB, not so many foreigner here to chase everything up, not so high petrol tax, if don't inc GST, will inflation be so high????

 

everything also blame on commoners.

 

read liao sibay tulan!!

[Beei]

Yeah.. They deserved another raise.. One billion enough anot??

 

[Tckrto]

show u guys most classic peektures!

 

[iMAGE]http://i83.photobucket.com/albums/j312/makapa/TV2007081921484500.jpg[/iMAGE]

[Apollo]

u peasants better wise up.. otherwise will send mata catch u and put on parade

 

[Tigershark1976]

I fark his whole family die!

 

knn.... u too kind to him lah... should curse his whole family kena gang rap*, run over by car, den the body kena rap* again... blo*dy idi*t! he know what is he toking or not?? he himself song song drawing 5 fugures pay. we all den wat?? have to survive with 3 figures salary ahh??