What does GDP 15% mean to you?
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Leong Sze Hian –
After adjusting for historical inflation of about two per cent, the annual real wage increase may only be about 0.6 per cent.
I refer to the articles “Economy
set to grow 13% – 15%” and “100,000 foreign workers needed: PM” (ST, Jul
15)On 15 July, Prime Minister Lee Hsien Loong said,“If we don’t allow
the foreign workers in, you are going to have overheating (in the
economy)”.I am somewhat confused by this. Wouldn’t allowing such a large influx of cheap foreign labour contribute to overheating the economy even more?
With all the good news about a booming economy and job market, the fact remains that for the last nine years, from 2001 to 2009, real wages increased by only 1.4 per cent per year.
In a Straits Times report on the same day, NTUC Deputy Secretary-General Halimah Yacob said “wage increases of between 3 and 4 per cent are being anticipated”. (“Higher growth but not higher wages yet”, ST, Jul 15). .
With inflation running at a 14 month high now at 3.2 per cent in May, we could end up with a third consecutive year of decline in real wages, As I understand it, wages do not include the employer’s CPF contribution. The employer’s CPF contribution rate was decreased from 16 per cent to 13 per cent in October 2003, which was partially restored to 14.5 per cent in July 2007.
After factoring this in, does it mean that in effect, the increase in real wages may even be less than the 1.4 per cent per annum, from 2001 to 2009?
According to the Ministry of Manpower’s
Singapore Yearbook of Manpower Statistics 2010 – Active CPF Members By
Monthly Wage Level, there were, in 2009:- 65,141 people earnings less than $400
- 146,080 earning less than $800
- 74,568 less than $1,000
- 128,611 less than $1,500.
Taken together, this means that there were a total of 464,400 or almost 30 per cent of all active CPF members, earning less than $1,500.
As the data excludes self-employed persons and inactive CPF members (those who did not have at least one employment CPF contribution paid for him for the current or any of the preceding 3 months), if we include these excluded persons, how many in total earn less than $1,500 in Singapore?
One of the targets of the Economic Strategies Committee (ESC) is to raise the wages of the average Singapore worker by one-third in the next decade, from a median wage of $2,400 today to about $3,100 in 10 years.
The Finance Minister said that to achieve this, Singapore must have workers with top quality skills and make the island one of the top liveable cities in the world. He also said Singapore has never had it as good as now, and for the next five to ten years.
Even if workers heed Mr Tharman’s call to “raise our game”, the targeted reward of a median wage of $3,100 in 10 years time only works out to an annual increase of 2.6 per cent.
After adjusting for historical inflation of about two per cent, the annual real wage increase may only be about 0.6 per cent.
This is even lower than the 1.4 per cent per annum real wage increase from 2001 to 2009, according to the Ministry of Manpower’s Labour Market Q1 2010 report.
Speaking at the same dialogue session with the Finance Minister, the Manpower Minister said “productivity is also a partnership. It’s not just about a company making efforts, it also involves the workers, so workers must take responsibility for their own skills upgrading”.
I would like to suggest that the ESC sets it sight higher for wage increase. Otherwise, why would workers want to upgrade their skills, be more productive, aspire to higher standards, and make Singapore one of the top liveable cities in the world, when the reward at the end of the day, is just a 0.6 per cent increase in real wages?
In light of the last two years of negative real wage growth and current inflation running at a 14-month high of 3.2 per cent in May, workers may direly need a moral boost in the form of higher expected wage increases in the future.
———–Pictures from Singapore Mind.
Source: TOC
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Quite sad.
Last time, they talked about creating jobs and such.
Now all they care about is higher GDP. (of which performance is tied to their own salaries)
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we must believe in our government...
they are the elites...
so they must be right in what they are doing...
otherwise how they command such high pay...
we will definitely "benefit" from their excellent leadership...
we will "gain" from the 13-15% GDP growth...
really...
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i mean seriously the quarterly announcement of GDP all these damn years is meaningless. When I was working part time 12-13 years ago, I would mix around with these uncles who earn about $1200 a month. And they would tell me how the economy grows and all that but what does it mean for them.
And there are many many many uncles and aunties in singapore who earn that kind of amount a mth.
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election is coming soon
all politican/gahmen would want to have a double digit economic growth
really
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Originally posted by Rock^Star:
i mean seriously the quarterly announcement of GDP all these damn years is meaningless. When I was working part time 12-13 years ago, I would mix around with these uncles who earn about $1200 a month. And they would tell me how the economy grows and all that but what does it mean for them.
And there are many many many uncles and aunties in singapore who earn that kind of amount a mth.
Fast forward to 2010.
These uncles are still earning $1200 a month (or less) and telling us how the economy grows 15% and what it means to them.
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Well, look at the bright side of life. At least those working in Government sectors or govt-linked companies can expect a fat year-end salary this year.
Those working in SMEs?? too bad :p
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GDP is a economic term, from what i understand during my school days, 1% is quite equivalent to 1 billion in earning from export. By stating 15% would mean a 15 billions growth in singapore, and that divided by the citizens here will give you the per capital. So you got 4 millions, just calculate how much each will be earning at an average.
It is an indicator of the economy condition and also a figure for the world to access us. The high GDP result in good public servants paid hike and good bonuses, so, ministers are going to get higher paid, it also represent that all Singaporeans are earning well, and therefore less perks will be given out, however, Gst rebate may increase.
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nothing
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only LHH can understand what he means by allowing foreigners in we can stop overheating in economy. i think about for hours then i realise what he means. coz he gona allow 100k good for nothing foreigner in to stop the overheating by greatly reducing the poductivity of singapore company, and sobotaging the fellow workers.
that make sense indeed!!
smart LHH.
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Philippines news report “100,000 jobs opening” in S’pore
http://theonlinecitizen.com/2010/07/philippines-news-report-100000-jobs-opening-in-spore/
Don’t focus solely on GDP growth, NMP says
http://theonlinecitizen.com/2010/07/don%e2%80%99t-focus-solely-on-gdp-growth-nmp-says/
Click and read it yourself
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Let me give you guys a hint. Mr lee major in statistics, go figure
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Lee Major?? Dad said he is a kind of actor in the 70s