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from Tommy KOH <[email protected]>
to [email protected]
cc [email protected]
date Fri, Sep 17, 2010 at 10:25 AM
subject Re: FW: ST article - Basic pay: Tommy Koh weighs in
hide details 10:25 AM (1 hour ago)
Thanks.
I agree with your analysis.
Best wishes.
-------------------------------------------------------------------
From: BT Kojak [mailto:[email protected]]
Sent: Thursday, September 16, 2010 11:42 AM
To: Chairman, IPS
Subject: ST article - Basic pay: Tommy Koh weighs in
Dear Tommy,
I'm writing to you in regard to what you have been quoted on ST during your recent book launch:
'The growing disparity and the hardship faced by the lowest 20 per cent of
our workers are threats to our social cohesion and inconsistent with our
policy of inclusive growth,' he said at a book launch. 'As a Straits Times
correspondent recently commented, Singapore is a First World country with a Third World wage structure.'
Indeed, I agree with you totally on this point. In my view, the number 1
culprit in causing the fall of income of our lowest 20% of our workforce is
due to the relentless influx of foreign "talents" into Singapore, thanks to
our Government's open door policy to foreign workers. As it is, the foreign
population in Singapore now stands at 36%, the highest among the 1st world nations in the world. Huge influx of foreign workers helps to depress wages in Singapore due to the increase supply of cheap manpower from 3rd world countries.
Increasingly, this huge influx of foreign workers is now also threatening
the jobs of our PMETs. Just to give you an illustration, the other day my
company was trying to recruit an account assistant. Typically, the market
rate for such a position is about $1500 for a fresh recruit. We had many
PRC, Vietnamese, Burmese etc applicants (LCCI fresh grads from here) all
asking for salaries very much well below $1500. Some Burmese applicants
even asked for $800 so that they could get a job and continue to stay in
Singapore.
Now, you might ask, how can a Burmese survive on $800 in Singapore? I asked the same question and one told me that he lived with 3 others in a room paying $150 for rental each. For food, he said he could survive very well on $200 a month. I estimated that he could probably save $400 a month for him to send back home. Using google, one can calculate that $400 is about US$300 or 300,000 Kyat. From google, I've also found out that a junior civil servant is only paid 20,000 Kyat a month in Myanmar. In other words, at $400, this is already more than 1 year's pay of a junior civil servant in Myanmar!
Hence, these 3rd world foreign workers are participating nothing more than
economic arbitraging. We of course, can't blame them since it's only
natural that people will want to seek out the best for themselves and for
their lives. But the question we want to ask ourselves is this - will
Singaporeans also want to live like them in our own country? That is,
squeezing 4 to a room and eating sparingly for every meals?
Lastly, congratulations on your book launch.
Best regards
Kojakbt
to [email protected]
cc [email protected]
date Fri, Sep 17, 2010 at 10:25 AM
subject Re: FW: ST article - Basic pay: Tommy Koh weighs in
hide details 10:25 AM (1 hour ago)
Thanks.
I agree with your analysis.
Best wishes.
-------------------------------------------------------------------
From: BT Kojak [mailto:[email protected]]
Sent: Thursday, September 16, 2010 11:42 AM
To: Chairman, IPS
Subject: ST article - Basic pay: Tommy Koh weighs in
Dear Tommy,
I'm writing to you in regard to what you have been quoted on ST during your recent book launch:
'The growing disparity and the hardship faced by the lowest 20 per cent of
our workers are threats to our social cohesion and inconsistent with our
policy of inclusive growth,' he said at a book launch. 'As a Straits Times
correspondent recently commented, Singapore is a First World country with a Third World wage structure.'
Indeed, I agree with you totally on this point. In my view, the number 1
culprit in causing the fall of income of our lowest 20% of our workforce is
due to the relentless influx of foreign "talents" into Singapore, thanks to
our Government's open door policy to foreign workers. As it is, the foreign
population in Singapore now stands at 36%, the highest among the 1st world nations in the world. Huge influx of foreign workers helps to depress wages in Singapore due to the increase supply of cheap manpower from 3rd world countries.
Increasingly, this huge influx of foreign workers is now also threatening
the jobs of our PMETs. Just to give you an illustration, the other day my
company was trying to recruit an account assistant. Typically, the market
rate for such a position is about $1500 for a fresh recruit. We had many
PRC, Vietnamese, Burmese etc applicants (LCCI fresh grads from here) all
asking for salaries very much well below $1500. Some Burmese applicants
even asked for $800 so that they could get a job and continue to stay in
Singapore.
Now, you might ask, how can a Burmese survive on $800 in Singapore? I asked the same question and one told me that he lived with 3 others in a room paying $150 for rental each. For food, he said he could survive very well on $200 a month. I estimated that he could probably save $400 a month for him to send back home. Using google, one can calculate that $400 is about US$300 or 300,000 Kyat. From google, I've also found out that a junior civil servant is only paid 20,000 Kyat a month in Myanmar. In other words, at $400, this is already more than 1 year's pay of a junior civil servant in Myanmar!
Hence, these 3rd world foreign workers are participating nothing more than
economic arbitraging. We of course, can't blame them since it's only
natural that people will want to seek out the best for themselves and for
their lives. But the question we want to ask ourselves is this - will
Singaporeans also want to live like them in our own country? That is,
squeezing 4 to a room and eating sparingly for every meals?
Lastly, congratulations on your book launch.
Best regards
Kojakbt