SINGAPORE : NTUC Secretary General Lim Swee Say believes there are more shortcomings than benefits of having a minimum wage system.
Speaking at the Lee Kuan Yew School of Public Policy, Mr Lim said the government is determined to increase wages and improve worker skills through training.
This approach will allow workers to remain employable.
When asked about Singapore's workfare programme, and if it could work in big countries such as China, Mr Lim said one challenge was solving social inequality.
He said more than 90 percent of countries worldwide have adopted a minimum wage system to pay workers.
If wages are too low, workers suffer but if it is too high, many low wage workers end up losing their jobs.
Mr Lim said employers who do not treat their workers well will find skilled employees leaving to look for better opportunities.
He believes Singapore is on the right track in solving the issue of workers' pay.
As such the government had set up a comprehensive system to improve worker skill level through programmes such lifelong learning programmes, especially for low wage workers.
He also gave an example of a security guard who used to earn $850 a month.
While training will take 3 to 5 years, it will pave the way for pay increases of $600 or more.
In the meantime, his salary can be complemented through workfare supplements, in some cases, up to 25 percent of his salary.
He said the reason why other countries cannot emulate Singapore's model is because not all governments have such a comprehensive employee training framework.
Secondly, not all countries have the financial capacity to pay for such training programmes.
Presently workfare is not a costly programme at $400 million, but he expects the cost to go higher.
While Singapore's model is different from other countries, Mr Lim added that it does not mean that what Singapore has done is the wrong thing.
- CNA/ch
