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PM: 20% wage rise in 10 years within reach


CKP
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Thursday, Feb 09, 2012

my paper

 

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PM: 20% wage rise in 10 years within reach

 

By Kenny Chee

 

A WAGE increase of 20 per cent is possible in the next 10 years, even in unfortunate circumstances, said Prime Minister Lee Hsien Loong in a dialogue recently.

 

"That is a very ambitious target for us to do because we are already at a very high level of development," he added.

 

 

His comments were made last Thursday in a pre-Budget dialogue with labour and union leaders, and will be published in tomorrow's edition of NTUC This Week, a publication by the National Trades Union Congress.

 

In 2010, the Government began efforts to raise real median wages by 30 per cent by 2020, to improve the living standard of the average Singaporean.

 

To achieve this, productivity growth has to rise from 1 per cent a year to between 2 and 3 per cent. Mr Lee noted last Thursday that, over the last 10 years, Singapore's productivity improved by 20 per cent and wages rose by 11 per cent.

 

But he said Singapore actually did better than that, as much of the improvements were made in the last five years, following a difficult period during the Sars crisis.

 

He said Singapore has to improve its productivity in the next 10 years by over 20 per cent.

 

If Singapore was "lucky" enough to achieve a 30 per cent productivity increase, real wages for the median worker may be pushed up by about 30 per cent as well, he said.

 

"But if we are not lucky, we can get the wages up 20 per cent over the next 10 years, and that is something which is possible."

 

The dialogue session was organised by the Ong Teng Cheong Labour Leadership Institute and held at the NTUC Auditorium. It was attended by about 450 people, including union leaders and Manpower Ministry representatives.

 

Mr Lee added that Singapore has to rely less on foreign workers. In the last five years, about 150,000 foreign workers came into Singapore annually, he said.

 

If this continues every 10 years, there would be one million more people here, he said. With a population of about five million now, the population could grow to six million 10 years later and seven million 20 years from today, he said.

 

"I think we can squeeze a bit closer together but there is a limit to how much you can squeeze," said Mr Lee.

 

This means Singapore has to manage its inflow of foreign workers and be less dependent on them, and the country has to work harder to upgrade its productivity, skills and capabilities.

 

"That's what we must do if we are to grow over the next 10 years and beyond," said Mr Lee. "It's the only way we can grow in Singapore and improve the lives of our people."

 

[email protected]

 

 

I thought his right hand man Tharman PROMISED 30% increase over 10 years during GE2011?

 

Now, PM lowered expectations by one third to 20% increase over 10 years?

 

[shakehead]

Edited by CKP
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Wow I can do that in 2 years. I am better than him Liao. :D

 

So you want to run for GE2016 or are you saying PM's goal post is very wide and easy to score goal (achieve target)??

 

[laugh]

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Whats the inflation rate by then? :wacko:

 

Doesn't matter what the inflation rate is since he specified that it would be "real wages".

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(edited)

Whats the inflation rate by then? :wacko:

 

20% increase over 10 years is 2% real increase per year.

 

If inflation was 5% then your wage must grow 7% in nominal terms every 10 years since 2011.

 

Who did not get 2% of REAL increase last year please KEE CHIU!

 

 

[:p]

Edited by CKP
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If this is achieved, will he and his cabinet take a 'cut' and raise their own salary by 20%x2 ???

Anyway, won't inflation alone wipe out the 20% wage increase? [:(]:blink: ie worst than back to square one

 

 

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So you want to run for GE2016 or are you saying PM's goal post is very wide and easy to score goal (achieve target)??

 

[laugh]

base on my current salary compare to starting pay 8 years back. My increment is around 10% a year which is very little compare to what some bro are getting.

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If this is achieved, will he and his cabinet take a 'cut' and raise their own salary by 20%x2 ???

Anyway, won't inflation alone wipe out the 20% wage increase? [:(]:blink: ie worst than back to square one

 

Read the article: it's REAL and MEDIAN wages.

 

Caveat is MEDIAN.

 

It means the top 1-5% wage earners can push up and distort the annual median increase.

 

[cool]

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base on my current salary compare to starting pay 8 years back. My increment is around 10% a year which is very little compare to what some bro are getting.

 

Well done, that's way above the reported annual increase. You must be a top earner here.

 

[thumbsup]

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Is it necessarily good for Singapore ? We will not be very competitive, I say we focus on rising costs and prices. Expand the ASEAN market.

 

Not a good idea to compete mainly on wages.

 

It lowers standard and quality of living.

 

[cool]

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Well done, that's way above the reported annual increase. You must be a top earner here.

 

[thumbsup]

kns, suan sauy me. Starting pay 1k. Now 1.8k mah. [:p]

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kns, suan sauy me. Starting pay 1k. Now 1.8k mah. [:p]

 

it's okay... I heard you are the spokeperson for RadX, so you must be well paid... and humble too

 

[;)]

 

 

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Wage increase 20% over ten years so that's about 2% yearly.

 

Inflation increase 5% every year and that's compounded yearly.

 

By then, most people will not even be earning enough to take bus.

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Sure, are we ready for 1st world living ?

 

We should always try to do better (the next time) and strive for better living standards

 

 

Are we relatively independent on foreign markets and investments ?

 

No, but this should be unrelated to wages.

 

Wages as a percent of GDP is quite low in Singapore (45%) compared to other developed economies (60-65%).

 

So plenty of room for wages to rise.

 

[cool]

 

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Wage increase 20% over ten years so that's about 2% yearly.

 

Inflation increase 5% every year and that's compounded yearly.

 

By then, most people will not even be earning enough to take bus.

 

Article said REAL increase, so inflation accounted for.

 

However, official inflation statistics I feel are generally low balled and under reported.

 

[:p]

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