Connect with us

Current Affairs

Wages and jobs: More or less?

Published

on

Yvonne Ho and Leong Sze Hian /

Foreigners paid more than S’poreans?

It looked like any other job advertisement for service staff, but one funny thing stood out – foreigners are paid $7 per hour while locals are paid $6.40 per hour for the same job [1]. The buzz from the elections in recent months had highlighted that the influx of foreign labour was depressing wages, as foreigners were willing to be paid lower, but this advertisement seemed to show otherwise.

A higher listed pay for foreigners has a two-fold effect of attracting foreigners and keeping away locals due to the perceived unfairness of wages. Why would an employer try so hard to attract foreigners to work? Won’t a foreign worker levy be incurred? [2] The advertisement contains a clue – the foreigners the employer wants are students in government schools.

Foreign workers loophole?

The foreign worker levy does not apply to two groups  – dependents of Employment Pass holders [3][4] and foreign students studying in approved schools in Singapore [5]. Local staff are paid an additional 16% CPF contributed by the employer, not reflected in the contracted wage.

When emailed, the agent who posted the advertisement replied affirming that it was due to the employer’s contribution that the local staff’s pay was lower. 16% of $6.40 works out to $1, giving the local staff a $7.40 per hour wage, higher than what foreigners get.

Foreign students are a pool of potential employees that incur neither levies nor CPF. The employer can pay out less for hiring this group of foreigners, and will use such discriminatory advertising to attract them.

A search on the internet or on popular jobs websites with the keyword ‘dependents pass’ or ‘foreigners’ yields a long list of links. Some specifically ask for dependent’s pass holders [6], while some others try to attract foreigners with seemingly higher pay.

The Straits Times on 10 July 2011 [7] reported that there is a dire shortage of service staff and many restaurants are trying to deal with staff shortages, some having shorter operating hours or even closing sections of the restaurant on certain days. One of the restaurant operators’ laments was that the pool of service staff is finite, and the foreign worker quota is not helping as locals shun the profession.

Trying to ‘score’ foreign workers who don’t incur levies with discriminatory hiring will, of course, not attract locals. One way to increase the pool of service staff is to pay higher wages. Pay more than flyer distribution, telemarketing or retail and the pool of casual labour who would otherwise work in those jobs would naturally flow into the F&B service sector.

The pool of foreign labour from this two groups of foreigners is small compared to the number of foreigners working here who incur levies, and it is not worthwhile for MOM nor taxpayers to administer a separate levy for these workers. Market forces would regulate the flow of labour and we urge employers not to have employment practices that discriminate against locals.

Pay more, get more?

There are low levels of unemployement and employers face a tight labour market.  However, our labour force participation rate is 66.4% [8]. Paying higher wages can also attract more people into the workforce. The increased costs of staffing may be an investment generating handsome returns for a good restaurant operating at capacity. Higher wages will translate to increased labour participation and a larger pool of service staff.

Wages more or less?

If the wages and jobs for Singaporean service staff is an issue, what about the wages of all Singaporean workers?

Well, the latest data on wages of residents is in the MOM’s Report on wages in Singapore 2010 released on 30 June 2011. It states that “Total wages (comprising basic wages and bonuses) in the private sector grew by 5.5%, after contracting by 0.4% in 2009”.

“Taking into account inflation, real total wages rose by 2.7% in 2010, after declining by 1.0% in 2009”.

“Annualised over the three years from 2007 to 2010, real total wages declined by 0.3% p.a.”.

2 sets of data for the same periods?

However, prior to the above data, the last available MOM statistics were a real median wage increase of –1.2, -3.2 and 0.5 per cent, for 2008, 2009 and 2010, respectively.

Also, the real median wage increase over the last three years was –3.9 per cent.

So, why does the latest MOM data appear to be so much better, for the same periods?

The answer is that the latest report is based on data from the Survey on Annual Wage Changes carried out from December 2010 to March 2011 which effectively covered 4,338 private establishments each with at least 10 employees, which yielded a survey response rate of 90%.

In summary, an ad-hoc once-off survey of wages from a few thousand establishments, is very different from the regular annual wage reports of the MOM using data of the entire population.

Finally, if you compare the two different sets of data, you may like to ask whether the real wage growth over the last three years was –0.3 or –3.9%, and whether last year’s real wage growth was 2.7 or just 0.5%?

References:

[1] link expired. Screenshot taken.  http://singapore.gumtree.sg/f-Jobs-part-time-evening-weekend-W0QQCatIdZ75QQerrorIdZ1

[2] http://www.mom.gov.sg/foreign-manpower/foreign-worker-levies/Pages/levies-quotas-for-hiring-foreign-workers.aspx The Ministry of Manpower (MOM) charges a levy on foreign workers to control the number of foreigners. This also works to prevent discriminatory hiring against locals in favour of foreigners who don’t incur the employer’s CPF.

[3] http://www.mom.gov.sg/foreign-manpower/passes-visas/letter-consent/before-you-apply/Pages/default.aspx

[4] http://www.mom.gov.sg/foreign-manpower/passes-visas/Pages/employment-of-long-term-visit-pass-holders.aspx

[5] http://www.mom.gov.sg/foreign-manpower/working-in-singapore/Pages/employment-of-foreign-students.aspx

Foreign students above 14 years in local tertiary schools and international schools are allowed to work during vacation;  students  on a list of approved institutions (like local universities and polytechnics) are allowed to work full time during vacation and part-time during term time.

[6] http://singapore.gumtree.sg/c–bar-waiting-hotel-service-crew-Dependant-pass-holders-wanted-W0QQAdIdZ293949498

[7] Straits Times, 10 July 20http://singapore.gumtree.sg/c-Jobs-bar-waiting-hotel-service-crew-Dependant-pass-holders-wanted-W0QQAdIdZ29394949811 – Wait where’s the service staff?

 

[8] Yearbook of Statistics Singapore 2011

 

Continue Reading
Click to comment
Subscribe
Notify of
0 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments

Current Affairs

Ng Eng Hen: Dust clouds likely caused armoured vehicle collision during Exercise Wallaby

Dust clouds limiting visibility likely contributed to the collision between two Hunter vehicles during Exercise Wallaby, Defence Minister Ng Eng Hen explained in his parliamentary reply. 12 servicemen sustained mild injuries, but safety measures prevented more serious outcomes. A formal investigation is ongoing to ensure further safety improvements.

Published

on

SINGAPORE: Low visibility caused by dust clouds was identified as the likely cause of the collision between two Hunter armoured fighting vehicles (AFVs) during Exercise Wallaby last month, Defence Minister Ng Eng Hen said in a written parliamentary response on Tuesday (15 October).

The incident, which occurred in Queensland, Australia, on 24 September 2024, resulted in mild injuries to 12 servicemen.

Dr Ng’s statement was in response to a parliamentary question from Mr Dennis Tan, Workers’ Party Member of Parliament for Hougang SMC.

Mr Tan asked for details on the accident, specifically its cause and whether any lessons could be applied to enhance training and operational safety within the Singapore Armed Forces (SAF).

The collision took place during a night-time movement of Hunter AFVs at the Shoalwater Bay Training Area.

The vehicles were returning to base when one rear-ended another. Dr Ng explained that the dust clouds generated by the AFVs’ movement significantly impaired visibility, might likely contributing to the accident.

The 12 affected servicemen sustained mild injuries and were promptly taken to the nearest medical facility.

None of the injuries required hospitalisation, and all 12 servicemen were able to rejoin their units for training the next day.

According to the minister, adherence to safety protocols—such as wearing seat belts and protective gear—played a crucial role in limiting the injuries to mild ones.

Following the incident, a safety pause was immediately implemented, with all drivers being reminded to maintain proper safety distances, especially when visibility was compromised.

Troops were also reminded to adhere strictly to safety protocols, including the proper use of safety equipment, Dr Ng added.

The safety lessons from the incident were shared not only with the affected units but also with other participating groups in the exercise, as well as units back in Singapore, through dedicated safety briefings.

Mr Tan also asked about the broader implications of the incident. In his response, Dr Ng said that a formal investigation had been launched in accordance with SAF’s safety incident protocol.

The investigation aims to assess the circumstances more thoroughly and identify any further measures that could be taken to enhance safety.

Dr Ng shared that recommendations arising from the investigation will be implemented where necessary.

Exercise Wallaby is SAF’s largest unilateral overseas exercise, and the 2024 edition began on 8 September, running until 3 November.

The exercise involves approximately 6,200 personnel, including 500 operationally ready national servicemen.

The exercise has been conducted at Shoalwater Bay Training Area in Queensland since 1990, and it is a key part of SAF’s overseas training program.

The Hunter AFV, one of the vehicles involved in the collision, is a state-of-the-art platform jointly developed by the Defence Science and Technology Agency, the Singapore Army, and ST Engineering.

It replaced the SAF’s aging fleet of Ultra M113 AFVs in 2019, which had been in service since the 1970s. The Hunter is equipped with advanced features, including a 30mm cannon, a 76mm smoke grenade launcher, and an automatic target detection and

tracking system designed to enhance operational effectiveness. It is also capable of traveling at increased speeds and covering longer distances, making it a versatile asset for the SAF.

Continue Reading

Current Affairs

Government to “carefully consider” Lee Hsien Yang’s demolition application for 38 Oxley Road

The Singapore Government will “carefully consider” Mr Lee Hsien Yang (LHY)’s application to demolish the house at 38 Oxley Road. LHY announced his intent on Tuesday morning following the recent death of his sister, Dr Lee Wei Ling, reaffirming his commitment to honour his parents’ wish for the house’s demolition.

Published

on

The Singapore Government has indicated that it will “carefully consider” Mr Lee Hsien Yang’s (LHY) application to demolish the family home at 38 Oxley Road.

LHY, the youngest son of Singapore’s founding Prime Minister, the late Lee Kuan Yew (LKY), announced his intention to apply for the demolition in a Facebook post on 15 October 2024, following the death of his sister, Dr Lee Wei Ling, on 9 October.

The announcement marks a significant development in the ongoing saga over the fate of the historically significant property, which has been at the heart of a family dispute since LKY’s passing in 2015.

In his will, executed in December 2013, LKY expressed his desire for the house to be demolished “immediately after” Dr Lee moved out of the property. Dr Lee, a prominent neurologist, had been the last remaining resident of the house.

LHY reaffirmed his commitment to carrying out his father’s wishes, stating, “After my sister’s passing, I am the only living executor of my father’s estate. It is my duty to carry out his wishes to the fullest extent of the law.”

He added that he would seek to build a small private dwelling on the site, which would be “held within the family in perpetuity”.

LHY also referenced his brother, Senior Minister Lee Hsien Loong’s (LHL) remarks in Parliament in 2015, when he was Prime Minister, stating that upon Dr Lee’s passing, the decision to demolish the house would rest with the “Government of the day.”

In response to media queries regarding LHY’s announcement, a spokesperson for the Ministry of National Development (MND) acknowledged the intended application and emphasised that the Government would “carefully consider issues related to the property in due course”.

The spokesperson also highlighted that any decision would need to balance LKY’s wishes, public interest, and the historical value of the house.

The house at 38 Oxley Road, where key decisions about Singapore’s path to independence were made, has been a focal point of public and political discussion.

The future of the house became contentious in 2017 when LHY and Dr Lee publicly accused their elder brother, LHL, of trying to preserve the house against their father’s wishes for political reasons.

LHL denied the accusations, issuing a Ministerial Statement in Parliament, where he also raised concerns over the preparation of their father’s final will. He clarified that he had recused himself from all decisions regarding the property and affirmed that any government action would be impartial.

In 2018, a “secret” ministerial committee, which was formed in 2016 to study the future of 38 Oxley Road, proposed three options: preserving the property and designating it as a national monument, partially demolishing the house while retaining the historically significant basement dining room, or allowing complete demolition for redevelopment. LHL accepted the committee’s conclusions but stated that no immediate decision was necessary, as Dr Lee was still living in the house.

In a statement conveyed by LHY on behalf of Dr Lee after her passing, she reiterated her strong support for her father’s wish to demolish the house. “My father, Lee Kuan Yew, and my mother, Kwa Geok Choo, had an unwavering and deeply felt wish for their house at 38 Oxley Road to be demolished upon the last parent’s death,” the statement read.

She added, “He had also appealed directly to the people of Singapore. Please honour my father by honouring his wish for his home to be demolished.”

Despite selling the house to LHY at market value in 2015, LHL’s stance regarding the house’s preservation became a public issue, especially after the family disclosed that the Government had raised concerns about reinstating the demolition clause in the 2013 will. The ministerial committee had reviewed the matter, but a final decision was deferred until now.

The fate of 38 Oxley Road remains to be seen, but the Government’s decision will likely have lasting implications for the legacy of the Lee family and the conservation of Singapore’s historical landmarks.

Continue Reading

Trending