Does Singapore need Economic Restructuring II?

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#1
I am not sure. It does not sound like a working solution.
Who is going to foot the bill?

I am quite sure it will straightaway lead to major price inflation and the ones who suffer will be the lower income earners.

The right way is to tax the rich people more and reduce the cost of living via price control over basic neccessities.(housing and transport are two easy targets).

As for food, it is time for ntuc to do more than upgrading its image by going high class(ntuc finest???).


Does Singapore need Economic Restructuring II?


by Lim Chong Yah
04:45 AM Apr 10, 2012
As a solution to the new problems of increasing income inequality and the excessive reliance on cheap foreign labour import, I would like to propose Economic Restructuring II, operational for three years, with the following six features.

Sizable pay increase

for lowest income workers

One, that all workers' pay below S$1,500 per month be cumulatively increased by 15 per cent in year one, 15 per cent in year two and 20 per cent in year three.

This increase is applicable to all workers, local or foreign, if he or she draws a pay of less than S$1,500 per month. A dollar quantum is also to be included in the increase pay package.

Part of pay increase to Skills

Development Fund and CPF RA

Two, that one-third of the increase pay package be channelled to the Skills Development Fund (SDF), one-third in the form of take-home pay and the other third to the CPF Retirement Account.

For foreign workers, it will take the form of ex-gratia payment upon leaving Singapore on expiry of tenure.

The SDF should be reactivated, revitalised and reinvigorated to perform the functions of training and retraining of workers, mechanisation and technological upgrading, and better employment of labour through redesigning in labour use.

The restructuring momentum has to be regenerated and sustained. The buzzwords should continue to be "use one worker instead of two".

Moratorium on pay

of highest income groups

Three, those who receive S$15,000 a month or more will have their wages or salaries frozen for three years only during Economic Restructuring II.

There is no proposal for a pay cut or a pay ceiling or super-taxes for high-flyers, only a moratorium on pay increase for three years.

The intention is not to frighten the geese that lay the golden eggs. No Wall Street protests of the kind in the United States should ever be envisaged.

Moderation for middle income groups

Four, those whose pay is between $1,500 and $15,000 a month will receive a quarter to a third of those less than $1,500 a month. A portion should still go to the much inadequate CPF Retirement Account.

Government co-payment of SDF

Fifth, the state (or the Government) should contribute to the SDF on a 1-to-1 quid-pro-quo basis to demonstrate tripartite commitment, participation and responsibility in the new economic restructuring process.

Involvement of National Wages Council

absolutely necessary

Six and lastly, like in Economic Restructuring I, the modus operandi of Economic Restructuring II - including the operational details - should be discussed and decided upon by the tripartite National Wages Council, which has to forge consensus by the three tripartite social partners, as in 1979.

AIMS OF Economic restructuring II

The basic objectives of Economic Restructuring II are:

To check and to halt and, if possible, to reverse somewhat the disturbing increasing income inequality trend;

To increase productivity, total factor productivity, as a growth target; and

To check and to halt the trend towards increasing reliance on very much cheaper imported labour to generate quantitative GDP growth.

The overall objective must be, and should be, to enhance further the quality of life of all those who live and work in Singapore and, in particular, for those whose home and country is Singapore.

With Economic Restructuring II, we will have a stronger, more robust, and more productive economy, and a fairer, more just society.

NOT EASY BUT ...

It is much more difficult to have national economic restructuring now than three decades ago. The politico-economic and the socio-economic environment have changed.

But what has not changed, however, is that we still have effective tripartism and we still have a government and the Civil Service that are among the best in the world in cleanness, integrity and ability.

Economic restructuring needs a national will. Do we have it now - as we had it then, a little more than three decades ago - but now, we are faced with a new set of economic problems, which may be called the problems of economic success?

Previously, we called (it) Growth with Equity. Now, we call (it) Inclusive Growth. I have no doubt that Economic Restructuring II will bring Inclusive Growth to a more respectable and a more meaningful level.

I recognise, however, that Economic Restructuring II as proposed by me is but one way of achieving the aims of Inclusive Growth - probably, in my view, the best way.

Lim Chong Yah is Albert Winsemius Chair Professor of Economics and Director, Economic Growth Centre, School of Humanities and Social Sciences, Nanyang Technological University. The article is an excerpt of a speech, Does Singapore need Economic Restructuring II or another 'Wage Revolution'?, which he gave at the Economic Society of Singapore Distinguished Speaker Public Lecture Series at the Orchard Hotel yesterday. The views expressed are his own.
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#2
socialist - Mr. Turtle asks, "Mr. Rabbit, can you wait for me? Otherwise, I can never catch up..." (pant, pant...)
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#3
Quote:With Economic Restructuring II, we will have a stronger, more robust, and more productive economy, and a fairer, more just society.

For this we will need more opposition in the government, things are already improving but more needs to be done. We should severely curtail and make the landscape more fair.

I know what some are already thinking, don't be ridiculous they will still be around they are politicians what will they do sell char kuey teow? Big Grin
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#4
(10-04-2012, 09:08 AM)yeokiwi Wrote: I am not sure. It does not sound like a working solution.
Who is going to foot the bill?

I am quite sure it will straightaway lead to major price inflation and the ones who suffer will be the lower income earners.

The right way is to tax the rich people more and reduce the cost of living via price control over basic neccessities.(housing and transport are two easy targets).

As for food, it is time for ntuc to do more than upgrading its image by going high class(ntuc finest???).


Does Singapore need Economic Restructuring II?


by Lim Chong Yah
04:45 AM Apr 10, 2012
As a solution to the new problems of increasing income inequality and the excessive reliance on cheap foreign labour import, I would like to propose Economic Restructuring II, operational for three years, with the following six features.

Sizable pay increase

for lowest income workers

One, that all workers' pay below S$1,500 per month be cumulatively increased by 15 per cent in year one, 15 per cent in year two and 20 per cent in year three.


The last time Singapore tried that in the early 80s, it triggered a recession.

IIRC, the intent back then was to move away from Labour intensive industries like Garment manufacturing and even Electronics (hand assembly type). So, yes, I think they raised the minimum wages to 'force' cos. to improve productivity ie. less labour intensive and more automation. What happened was a recession - many people lost their jobs when factories were forced to close down instead. Those who had a job suffered pay cuts/freeze and no/tiny bonus. I remembered that part cos' I was one of the 'lucky' ones! Undecided

As for NTUC, have they forgotten their original mission? Or is 'Finest' meant to be used like a 'Robin Hood' biz ie. Profit (indirectly Rob) the rich to help the poor (even lower prices at NTUC supermart)?? Big Grin
Luck & Fortune Favours those who are Prepared & Decisive when Opportunity Knocks
------------ 知己知彼 ,百战不殆 ;不知彼 ,不知己 ,每战必殆 ------------
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#5
1. Just build more hawkers centres/market with no subletting (Can't cause too many coffeeshop towkays will be unhappy)
2. Build more government owned shopping centres with minimum rentals (Can't cause REITs won't be happy)
3. Build more JTC owned factories (Can't cause REITs won't be happy too)
4. Impose luxury tax and reduce GST (Can't cause Rich won't be happy too)
5. Sell HDB at COST (Can't cause it will be raiding the national reserves)
6. Give all PRs 5 years before converting to citizens (Can't cause PR won't be happy again)
7. And PR can't own HDB AT ALL (Can't cause Property developers and Banks won't be happy)

Now, you see the problems?


Will it happen? It won't cause too many "interested" parties will be hurt.
Think about it.
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#6
How many coffeeshop towkays, reits, bank owners and property owners here in spore? How many low income pp here? The govt will hv no choice but to please low income pp even at expense of middle and high income if votes slides further in the next election.
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#7
(10-04-2012, 09:46 AM)Mr Nobody Wrote: socialist - Mr. Turtle asks, "Mr. Rabbit, can you wait for me? Otherwise, I can never catch up..." (pant, pant...)

Turtle won the race in the end. Idea
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#8
(10-04-2012, 03:54 PM)Bibi Wrote: How many coffeeshop towkays, reits, bank owners and property owners here in spore? How many low income pp here? The govt will hv no choice but to please low income pp even at expense of middle and high income if votes slides further in the next election.

Thorughout history, with the exception of communist era, the rich always have the loudest and only voice, like it or not.
That's how it works MOST of the times.
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#9
The key to higher wage is still productivity.
And another key to higher income is to reclaim high value blue collar jobs from foreigners.

It is time to change perception of a blue collar job and even offer incentives for Singaporeans to take up blue collar jobs.
Many high value(much higher pay than serving customers at counter) blue collar jobs in construction and marine industries are currently taken up by foreigners.
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#10
Be realistic, no way we can have a policy that encourage equality without effort. That's the end of singapore.

My take is to remove aways any imbalance help to the rich when in the first place they do not need it. And beefup skillset and education to those left behind.

1. Housing Policy - Everyone needs own shelter regardless rich or poor. Bu the poor can work their whole life to get one and this take away all their development needed to survive better. Lowering the cost of housing narrow the gaps so that the poor got more "power" to focus others. And ensure it will not be abused by the rich by taking short-cut to leverage and get even richer, causing pricing surge on housing.

2. Financial Literacry - The poor is the weakest when comes to managing money. The rich and educated are likely to teach their children on money management.

3. Strong policy on protecting the investors from investments due to Frauds and Misleading ads. It should be viewed as no worst then robbery. Hold the top few layer of executives accountable with serious penalty.


Cory

Just my Diary
corylogics.blogspot.com/


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