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Employers bear brunt of unnecessary foreign worker levy hike

Published

14 years ago

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Pritam Singh

The points raised with regard to the foreign worker levy hike in the Economic Strategies Committee (ESC) Report released in February 2010, and Prime Minister Lee Hsien Loong’s announcement of the arrival of 100,000 more foreigners into Singapore’s workforce this year make for a curious contrast. In view of the PM’s announcement, a thoughtful employer ought to ask, was there really a need to raise the foreign worker levy in the first place since the PAP government appears to have the means to regulate and moderate the supply of foreign workers?

The PAP has argued that it prefers to control foreign worker supply through a “price mechanism”. On the other hand, the ESC Report has stated that it plans to reduce Singapore’s reliance on foreign workers to one-third of the total workforce.  By committing to limit Singapore’s exposure to foreign workers, the PAP government has effectively introduced a supply control mechanism, a system whose workings, like many government initiatives, is not generally visible to the pubic. Teo Siong Seng, the President of the Chinese Chamber of Commerce and Industry hit the nail on the head when he said, “A more controlled inflow of foreign workers will benefit the country.” Who controls this inflow? Clearly, the PAP government seems to have the means to do so.

On the back of the Prime Minister’s announcement, PAP MP Josephine Teo was quoted as saying that in spite of the upcoming spike of 100,000 workers, the “labour movement” will redouble its efforts to improve productivity.  How this is to be done was something the good MP did not see necessary to elaborate upon in any significant detail. In fact, the PAP’s rah-rah over productivity is causing many employers and employees to scratch their heads and wonder what they must do to increase productivity or in some cases, how they are to make sense of Minister Lim Swee Say’s “cheaper, better, faster” rhapsody.

At the 5th Singapore Indian Chamber of Commerce (SICCI) Champions of Industry dialogue in early July, PAP MP Inderjit Singh implored SME leaders to improve not just their staff, but themselves as well. He quoted the example of Muthu’s Curry restaurant (interestingly, the same corporate example used in the Feb 2010 ESC Report) but not before making the point that “a productive company focuses on increasing the value of its goods and services through quality and service excellence and not just through mere volume.” The hollow “cheaper, better, faster” call by Lim aside, it is clear the PAP expects employers to make financial investments in their attempts to raise productivity. Where is this money for this going to come from.

With employers already facing an impending one percentage point increase in their contribution rate to the Central Provident Fund, the foreign worker levy hike is looking increasingly like a calculated attempt by the PAP government of having its cake and eating it as well. If the PAP was sincere about raising productivity, it could have retained the foreign worker levy at the long-standing rate, or it could have alleviated employers’ burden by transferring any levy hike back to employers in the form of a productivity credit.

In truth, the ESC Report is a rather visionary document. Unfortunately, it under-estimated the reaction from employers and did not take into account how overly reliant employers had become on foreign workers, and how difficult it was going to be to wean the Singapore economy off foreign workers. In the aftermath of the ESC Report, many employers grumbled about the impending levy hike, for good reason too. It does appear as if the negative feedback from employers lead the Prime Minister to change tack for short-term benefit.

With an election due in the next few months, the last thing PM Lee needed was a hitherto reliable vote-bank of employers turning against the PAP, especially with high bonuses due to be announced to the public sector and civil service at the end of the year, on the back of 13-15% growth for 2010.

It is apparent that Singapore’s employers and the nation as a whole requires some foreign workers to keep the economy buzzing. It is also clear that employers who take the effort to groom Singaporeans and reduce their dependence on foreign workers deserve to be rewarded.

In raising the foreign worker levy when the purpose boasted about in the ESC report – “to encourage investment in productivity improvement” – looks increasingly questionable, employers are not wholly incorrect if they conclude that the foreign worker levy hike is simply a PAP attempt to raise taxes. Worst-hit will be SMEs who are likely to have no choice but to pass on the levy hike to Singaporeans, with the ambitious productivity objectives put forward by the Economic Strategies Committee looking increasingly aspirational, much like our national pledge.

Pritam Singh is the founder of OpinionAsia (www.opinionasia.com). He is currently a Juris Doctor candidate at the Singapore Management University and a member of the Workers’ Party. The views expressed here are his own.

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Indonesia

Miss Universe cuts ties with Indonesia chapter after harassment allegations

The Miss Universe Organization severs ties with Indonesia franchise due to harassment claims. Malaysia edition canceled.

Women allege body checks before pageant. Investigation launched. Safety prioritized.

Indonesia winner to compete in November finale. Height requirement controversy.

Published

1 year ago

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14 August 2023

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WASHINGTON, UNITED STATES — The Miss Universe Organization has cut ties with its Indonesia franchise, it announced days after allegations of sexual harassment, and will cancel an upcoming Malaysia edition.

In the complaint, more than a half dozen women said all 30 finalists for Miss Universe Indonesia were unexpectedly asked to strip for a supposed body check for scars and cellulite two days before the pageant’s crowning ceremony in Jakarta.

Their lawyer said Tuesday that five of the women had their pictures taken.

“In light of what we have learned took place at Miss Universe Indonesia, it has become clear that this franchise has not lived up to our brand standards, ethics, or expectations,” the US-based Miss Universe Organization posted Saturday night on social media site X, formerly known as Twitter.

It said that it had “decided to terminate the relationship with its current franchise in Indonesia, PT Capella Swastika Karya, and its National Director, Poppy Capella.”

It thanked the contestants for their bravery in coming forward and added that “providing a safe place for women” was the organization’s priority.

Jakarta police spokesman Trunoyudo Wisnu Andiko said Tuesday that an investigation into the women’s complaint has been launched.

The Indonesia franchise also holds the license for Miss Universe Malaysia, where there will no longer be a competition this year, according to the New York-based parent organizer.

In a lengthy statement posted to Instagram, Indonesia franchise director Capella denied involvement in any body checks.

“I, as the National Director and as the owner of the Miss Universe Indonesia license, was not involved at all and have never known, ordered, requested or allowed anyone who played a role and participated in the process of organizing Miss Universe Indonesia 2023 to commit violence or sexual harassment through body checking,” she wrote.

She added that she is against “any form of violence or sexual harassment.”

The Jakarta competition was held from 29 July to 3 August to choose Indonesia’s representative to the 2023 Miss Universe contest, and was won by Fabienne Nicole Groeneveld.

Miss Universe said it would make arrangements for her to compete in the finale, scheduled for November in El Salvador.

This year’s Indonesia pageant also came under fire for announcing a “significant change in this (year’s) competition guidelines” with the elimination of its minimum height requirement after it had crowned a winner.

In its statement, the Miss Universe Organization said it wanted to “make it extremely clear that there are no measurements such as height, weight, or body dimensions required to join a Miss Universe pageant worldwide.”

— AFP

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Malaysia

A Perodua service centre in Kuantan, Malaysia went viral for its strict dress code, Perodua responds

A dress code for vehicle servicing? A Malaysian car brand’s service centre dress code signage has puzzled netizens, raising queries about the need for attire rules during a routine service.

The manufacturer responded with an official statement after a flurry of comments, seeking to clarify and apologize.

Published

1 year ago

on

10 August 2023

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MALAYSIA: A dress code signage positioned at a service centre belonging to a prominent Malaysian car brand has sparked bewilderment among Malaysian netizens, who question the necessity of adhering to attire guidelines for a simple vehicle servicing.

The signage explicitly delineates clothing items that are deemed unsuitable, including sleeveless tops, short skirts, abbreviated pants, and distressed jeans.

The car manufacturer swiftly found itself flooded with comments from both inquisitive and irked Malaysian netizens. This surge in online activity prompted the company to issue an official statement aimed at clarifying the situation and extending an apology.

In a post that gained significant traction on the social media platform, politician Quek Tai Seong of Pahang State, Malaysia, shared an image to Facebook on Monday (7 Aug).

The image showcased a dress code sign prominently displayed at a Perodua Service Centre in Kuantan. Within the post, Quek posed the question: “Is this dress code applicable nationwide, or is it specific to this branch?”

The signage reads, “All customers dealing with Perodua Service Kuantan 1, Semambu, are requested to dress modestly and appropriately.”

Adding visual clarity to these guidelines, the sign features illustrative graphics that explicitly outline clothing items deemed unacceptable, including sleeveless tops, short skirts, short pants, and ripped jeans.

Delineating the specifics of the dress code, the signage stipulates that male visitors are expected to don shirts accompanied by neckties, opt for long pants, and wear closed shoes.

Conversely, female visitors are advised to don long-sleeved shirts, full-length skirts, and closed-toe footwear.

Perodua’s dress code sparks online uproar

Following the rapid spread of the post, Perodua’s official Facebook page found itself inundated with comments from both intrigued and frustrated Malaysian netizens, all seeking clarifications about the newly surfaced dress code policy.

Amidst the flurry of comments, numerous incensed netizens posed pointed questions such as, “What is the rationale behind the introduction of such regulations by the management? We demand an explanation.”

Another netizen expressed their dissatisfaction, arguing against the necessity of the rule and urging Perodua to take inspiration from the practices of other 4S (Sales, Service, Spare Parts, and Survey) automotive dealerships.

A concerned Facebook user chimed in, advocating for a more lenient stance, asserting that attempting to dictate customers’ clothing choices might not be in the company’s best interest.

Someone also commented in an angry tone, “Oi what is this? Going there for car service, not interview or working, right.”

As the discourse unfolded, it became evident that while some inquiries carried genuine weight, others chose to inject humor into the situation, playfully remarking, “If I wanted to buy a Myvi, I should buy or rent a formal attire first.”

“I sell economy rice at a hawker centre, I have never worn a long sleeve shirt and a tie… I guess I will not buy a Perodua car then.”

“I guess they will not serve those who wear short pants.”

Perodua addresses dress code controversy

As reported by Chinese media outlet Sin Chew Daily News, the manager of Kuantan’s Perodua Service Centre had acknowledged that the images on the dress code signage were misleading.

In response, the manager divulged that discussions had transpired with the head office, leading to the prompt removal of the signage to prevent any further misconceptions.

The manager clarifies, “We do encourage visitors to adhere to the dress etiquette, but we won’t go to the extent of restricting their choice of attire.”

He also revealed that currently, no complaints have been directly received from the public.

However, feedback from certain customers was relayed through Perodua’s agents.

Perodua also released an official statement by chief operating officer JK Rozman Jaffar on Wednesday (9 Aug) regarding the dress code on their official Facebook page.

The statement stated the dress code etiquette is not aligned with their official guidelines and they are currently conducting an official investigation on the matter followed by corrective measures to avoid the same incident from happening.

Perodua also extends its apologies for any inconvenience caused.

 

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