Good analysis of Prof Lim's shock therapy against miw's workfare....

[Cruxx]

When your most creative company is called "creative", you know the cuntry has nothing to offer to the rest of the world other than a haven for ill-gotten gains. Singapore is a parasite of the world economy.

 

[groober2011]

Singapore is unique in that it has no hinterland and no other means of earning foreign exchange. It is therefore forced to compete with the rest of the world in the wages game.

NZ can afford to have an uncompetitive wage structure because it can rely on it's wool, dairy, timber and tourism industries to keep going.

Australia is in a similar position, It has vast deposits of minerals which keep the economy humming.

The problem with Singaporeans is that they don't realise what a precarious position they are in. Force wages up and the majority of companies can simply pack up and leave. They are there only because of the availability of cheap manpower. Take that drawcard away and Singapore has nothing to offer the rest of the world.

Long ago our leaders saw the need not to allow undesirable industries to operate here. If you recall, we used to have a few tyre-manufacturers and other similar factories.

I agree on most of what you mentioned. There are many big players in Singapore that do not need cheap labour, namely, oil refineries, pharmaceutical companies, contact lens manufaturers to name a few plus many others top numerous to mention.

There is a total lack of automated equipment in many businesses namely, landscaping and grass cutting, the service industries, F&B and etc. There are ways and means to reduce manpower needs. For example, our women are not encouraged to join the workforce basically because companies are loathe to employ local women as they have home commitments like getting pregnant, sick kids etc.

There are many policies that need to be changed to increase our workforce and reducing our dependence on foreign workers. At times I wonder why there are 4 foreign workers and 1 supervisor required to dig a hole when all it needs is one worker with a special machine. I put it down the reason is because it is cheaper to employ foreign workers than to invest in an expensive machine.

 

[Suzie]

Foreign Workers Create what Economists called
' the Multiplier Effect ' on the Economy .
Thats what has been happening during the
past 5 years or so . But 'Effect' is Not
translated to the benefits of its 60% + 40%
citizens. We all knows who got the Cheese abd
who got the crumbs.

 

[Fook Seng]

Foreign Workers Create what Economists called
' the Multiplier Effect ' on the Economy .
Thats what has been happening during the
past 5 years or so . But 'Effect' is Not
translated to the benefits of its 60% + 40%
citizens. We all knows who got the Cheese abd
who got the crumbs.

Only foreign workers?

 

[Bigfuck]

Foreign Workers Create what Economists called
' the Multiplier Effect ' on the Economy .

Refer to what Krugman said more than 10 years ago about Singapore and how some failed economics MPs rebut him. No shame motherfuckers. BTW, this economic
talk can only be resolved by econometric simulations. Because it is not ceterus paribus of some one variable that says it all. It is the next of tens of variables when aggregated that suggest positive or negative gains. Never forget there is a function of time issue and do not forget that are shock therapies that the USA uses like QE to fuck the world system in their favor. The principles of economics are not God's laws. It is very much a human determined game. I tell you when the world economy crashes and whichever government in rule in Singapore has the guts to borrow and really build up Singapore and train locals, the multiplier gain in Singapore could be worth the gamble over 5-10 years. It is found that sunglasses sales have a positive correlation with ice cream sales, does not tell you if this phenomenon happens in summer in a country where summers are hot and glaring. Basic knowledge that our local Unis cannot teach due to fear by a dying old man who worries people are smarter than him. Sorry, that was true as early as 1950s and even now.

 

[groober2011]

Only foreign workers?

She meant citizens plus foreign workers.

 

[scroobal]

Have been watching this thread. Looks like everyone has missed the menaing of LCY's approach and the excellent analysis by the author.

We have sat on this for too long to allow cheap prices on a few things to prevail. The days of a allowing cheap FTs to flood the country so that Ah Kow can have his $2 chicken rice is long gone. Keep this up and you will have that revolution or a blood bath without or without Marie's cake.

Yes, it is indeed shock therapy. Yes, we do have to dismantle the ferris wheel and ship it elsewhere. Yes, the price of chicken rice and kopi-o will have to go up. This will force the good entrpreneurs to reinvent themselves, get more bang for their investment returns out of their capital rather than labour as the price of labour will go up. The upside is that prices of HDB flats will fall so the yunger generation can have a shot at the future. FTs and PRs will no long drive the market.

The downside is people like besotted and a whole bunch of useless individual posing as entrepreneurs who have depended on money to take on cheap labour will exit the industry.

After 25 years of nation building, we took a wrong turn and now we have to face the consequences. This is where the reserves come in. Not to prop up poor run businesses but to germinate and generate new business models, seed promising businesses and on the social front to look after those displaced by the shock therapy for the short term. It will be include looking after failed small time businessmen and their families, Singaporeans who have lost their jobs because they failed to upskill and provide the necessary breathing space to recover as a nation.

It will certainly not include looking after economics like the PRsand FTs.

 

[Suzie]

On our planet our sinkie land is unique.
No precedent ever. HK also cannot be use for comparision.
Govt is just doing Trial and Error .
Tikam Tikam .
Productivity/ Machineries do Not create the Buzz !!!
Machineries will Not Push up Pty Prices.
FT and Foreigners Do .
Taxi Uncles tell me that as a rule of Thump 80% of
their passengers are PRs / /Foreigers / / Tourists !

 

[Fook Seng]

Have been watching this thread. Looks like everyone has missed the menaing of LCY's approach and the excellent analysis by the author.

LCY has actually done a quantitative analysis of the whole thing. His critics are doing it at only the qualitative level.

Given that the middle income earners earn an average of 3 times the income of those earning below $1500pm. If middle incomes are frozen for 3 years, and based on past statistics, annual income growth is about 5% a year, this will more or less fund the increase in the 50% increase over 3 years for the lower end.

The middle income, in turn, need not remain frozen if the highest income group has their income frozen for 3 years and the money from their normal increase can be used to provide a higher than normal increase for the middle income earners. Overall, no actual increase of payroll from past trend need to take place.

The only problem is in the details of implementation. Possibly, it is sufficient to do it for the public sector and let that provide the catalytic effect for the private sector. Perhaps at the low end, not every skill group need to be uplifted. Some jobs may not find any local interest whatever which can be left to FW. Do we have to do as much for these jobs?

The degree of "subsidies" will probably have to be adjusted. The relative cost of things will change and such changes need to be managed through fiscal policies.

Best of all, it fits in well with the reduction in ministerial salaries.

 

[hockbeng]

So I'm assuming everyone in here have no problems seeing prices goes up when the businesses pass on the increase cost of operations to the consumers

Of course no problems!
Prices already going sky high without any wage increase.
Who gives a shit what businesses will do; want to increase price, go ahead!