24-10-2012, 05:03 PM
The government promotes improving the productivity of the workers but at the same time, they import cheap labor. Personally, these two do not gel.
Saying that importing cheap labour is the only way to keep cost own is a myth. In business, there are more than one way to keep cost down.
1) Importing cheap labour - It is one of the way and it is popular because it is the easiest and fastest way to do it. No investment needed. It is not popular in many other countries because it suppresses wages of the local as there is abundance of workers.
2) Automation - This is not that popular because it requires some capital outlay and time to build. Wages need not be suppress because workers are limited. In addition, long term wise, efficiency and productivity will increase as well. That was how the industrial revolution took place. If everyone had stuck to using slaves to build the pyramids, how tall will our tallest building be ever be?
I was in Schipol airport the other day to check in into my KLM flight. There were more than 12 counters to do check ins but only 3 counter ladies to help out because everything was automated. The same went for baggage check ins. There more than 10 baggage check ins but only 3 ladies to help out with the process. The process was fast and efficient and I am happy.
In essence, you can get 3 people with retraining (double their pay) to do the job of what 12 cheap labour will do, and still save cost. The only thing that you had to do, was put in a little time, and money.
The situation in Singapore at the moment is that there is no need for businesses to automate because there is an abundance of cheap labour.
Saying that importing cheap labour is the only way to keep cost own is a myth. In business, there are more than one way to keep cost down.
1) Importing cheap labour - It is one of the way and it is popular because it is the easiest and fastest way to do it. No investment needed. It is not popular in many other countries because it suppresses wages of the local as there is abundance of workers.
2) Automation - This is not that popular because it requires some capital outlay and time to build. Wages need not be suppress because workers are limited. In addition, long term wise, efficiency and productivity will increase as well. That was how the industrial revolution took place. If everyone had stuck to using slaves to build the pyramids, how tall will our tallest building be ever be?
I was in Schipol airport the other day to check in into my KLM flight. There were more than 12 counters to do check ins but only 3 counter ladies to help out because everything was automated. The same went for baggage check ins. There more than 10 baggage check ins but only 3 ladies to help out with the process. The process was fast and efficient and I am happy.
In essence, you can get 3 people with retraining (double their pay) to do the job of what 12 cheap labour will do, and still save cost. The only thing that you had to do, was put in a little time, and money.
The situation in Singapore at the moment is that there is no need for businesses to automate because there is an abundance of cheap labour.
www.joetojones.com - Helping the average Joe find the winning companies to invest in.