Random Discourse – Budget 2012

The main aim of this year’s budget appears to be tightening the flow on foreign workers with the objective of increasing productivity and ultimately wages for the average Singaporean. However, I am not quite sure hiow a blanket increase in foreign workers’ levy across all sectors the best way of doing so.

Is it difficult for the Ministry of Manpower to get from its database the number of foreign workers in Singapore right now, and get a detailed breakdown by company and position? Would it not be easier to tell from that which sectors in specific requires the ‘Singaporean First’ rule to be enforced and thus boost productivity to achieve whatever objectives the government has in mind? After all, there will be some sectors in Singapore which requires more foreigners. My understanding is that there is clearly a shortage in nurses in Singapore and the government is also looking at increasing the number of hospitals at the same time. Wouldn’t this levy means that cost of medical care will go up across the board for all of us?

It almost gives me the impression that the government isn’t doing this because that is too much work and is just lazy and taking the easy way out. It further reinforces my impression that the current government is hardly any more insightful or far-sighted than any of our opposition parties. In fact, they are so dull in their usual quick fix solutions that one fix leads to another problem – much like raising the ground level at the Orchard-Patterson Junction results in the flood waters back flowing along Orchard Road and Tanglin Road into Tanglin Mall and St Regis.

If this government isn’t just plan lazy, this seems like a kind of ‘I told you so’ response to “teach Singaporeans a lesson” and the make them “repent” for their negative reaction to the influx of foreigners. However, while it is true that Singaporeans are clearly unhappy about the stress on Singapore’s infrastructure (especially the increase in property prices and the packed public transport) as a result, few objects to ensuring the continual growth of our economy. Most of us are in fact asking for fine tuning of the foreign worker policies to ensure that not all companies take the easy way out by employing foreigners even when Singaporeans are willing and more qualified to take up the jobs. In short, most of us just want to ensure that Singaporeans are not discriminated against simple because they are older or allegedly more expensive. There is of course also the question of the competency of some foreigners, where the quality of their work hardly matches the qualifications they boasted but that’s another matter entirely.

The government is doing very little to address the other parts of the cost of doing business in Singapore – rental. The reason why employers will always consider taking it out on the employees by cutting their wages (or replacing them with cheaper ones) and not try and fight for cheaper rent is simply because the employee alone is the most feeble / vulnerable, especially when the union is a sham and the greatest landlord is the government itself.

Even private landlords are far less feeble than the individual worker. I recalled the debate on minimum wages in Hong Kong on Al Jazeera, and the guy representing the Confederation of Trade Unions was telling the representative of the HK Restaurants & Related Trades Federation that “we should together, hand in hand, complain about the high rent… it is the high rent that’s hurting industry, not worker’s pay!” (Watch the embedded video from 10:15 onwards.) Imagine this, in Hong Kong where the union is not as weak and feeble and the representative is ignored, how much more worse is it in Singapore when the union is toothless (and its leaders are also from the ruling party) and the government itself is the greatest landlord?

But please do not be mistaken, I am not endorsing minimum wages here. I am just using this part of the video to emphasize my point. Anyway, let me repeat that I do not find it amusing nor endearing to turn on employers by raising the levy across the board because it will certain have an impact on foreign direct investments in Singapore. Meantime, I wondered if a certain Member of Parliament has thought over whatever he wants to say before he say it. I quote:

” Businesses should look at the positive side of the new regulations on foreign workers. They are complaining that they cannot fulfil orders because they don’t have enough workers. This is a happy problem. Which would you prefer – too many orders, or no orders at all? ” – Gan Thiam Poh

Every time Mr Gan says something, it irks the hell out of me. That’s probably because he has a sense of humor that I cannot appreciate. In fact, some of my friends failed to appreciate it as well and one of them actually asked: ” Losing just one GRC in GE2011 should be a happy problem too. Which do you prefer, losing more parliament seats, or having no seats at all? “

Jokes aside, here’s something for Mr Gan to chew on. A friend of mine runs a small accountancy firm. She has found it increasingly difficult to get new employees. Granted, while I am not aware whether my fellow Singaporeans who are accountants may actually applaud the measures to increase the levy, my friend mentioned to me that she has since set up a new office in Johor Bahru for two reasons. Firstly, to avoid having to pay for levy for foreign workers and secondly, to cut her operating overheads in rental substantially. Please note that this is a local SME turning tail due to the current measures, and many more may either consider this option or already have done so. Makes me wonder if the Singapore government is covertly helping to promote Iskandar Malaysia…

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