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Singapore Report Card – An analysis of the PAP government
November 20th, 2010 | Author: Renny Li
Goh Chong Tong said that Singapore’s Productivity averaged 1% for the last 10 years. Yet the first of about 2.5 – 3 years of his Premiership was also part of the 10 years he spoke of the low productivity? Did he forget or was he “daft” and didn’t realise it? As he handed his PM seat to Lee Hsien Loong in 2004! All these things coming from a PAP Senior Minister so high up just goes to show how disconnected they are with events and time of even their own doing! Aren’t they then INCOMPLETE thinkers and thus NON-CRITICAL thinkers too?
Before 2004 when he was campaigning for his last term as PM (which we didn’t know!), it was all about KBE or “Knowledge Based Economy”. But then right after he got elected, KBE took a back seat and into history. Why? Seems quite unconscionable to drop such an important campaigned issue only to be dropped becoming PM for a 3rd term?
As, during his first 2 terms as PM, this was for bringing in foreign labour to mitigate our ageing population “problem”. And this problem was actually due to first PM Lee Kuan Yew’s “Stop at two” causing inadequate births to replace our ageing. Was then Lee and ALL of PAP CLUELESS? Clueless that replacement of a pair of parents requires 2.11 births? As at worse they should by common sense think like most people will, that 2 births is enough for parents replacements! But then if they did, then it can only mean they were AFTER Singaporean POPULATION REDUCTION for some strange reasons? Especially with Goh Chok Tong’s PM terms further encouraging “The less (babies) you have the more they have”! Very very strange indeed?
That said, productivity was also big GE campaigning for GCT then. But why did he add to the problem of insufficient births then by further telling Singaporeans that “The less (babies) you have, the more they have”? It now seems to be a ploy to exacerbate the ageing issue with even lower Singaporean birth rates for replacement? Thus giving rise for their arguments to replace INCREASING DROP in Singaporean s’ support for PAP. They MUST know that the GRCs has become conundrums for their “GE winning streaks” from grumbling from the ground! So, what’s their “game” plan and self-serving “plot”?
As they also enacted the Water Agreements AS problems with Malaysia and made that a big issue as well! But why so? More Red Herrings or were they groping in the dark on how to “pick” the handle of voters’ declining support from non-walkover wards? And they must know too that GRCs not contested for too long can be ones that turn the tables under their feet when a day comes that they HAVE TO declassify them in to SMCs to appease increasing dissent of PAP ways of governing! If they didn’t know, why then GRCs and other restrictive laws, OB Markers and Meritocracy conditions and claims WITHOU borders or guide posts?
It all adds up now doesn’t it? It is clearer and also clear now that they had been hatching and plotting for INFLUX of Foreigners for ALL LEVELS of work by leveraging on ageing Singaporeans. As if that was not enough, they ramped up their justification to bring in even more foreigners to also “Foreign Talents” by repeating that they bring jobs for Singaporeans! How can this be true and real when foreigners actually then began to REPLACE Singaporeans who got RETRENCHED more and more? So, not only is something was and is amiss! Because, their reasoning began “falling flat on their faces” due to even more and more PMETs losing their jobs.
And as if this RUB wasn’t enough, PAP began announcing that the employment rate has gone down to some 2%+! What is stranger still is that even the retrenched PMETs were offered lower paying jobs. With even a PRC PhD and more Singaporean PMETs becoming taxi drivers? The issue of retrenched professionals being compromised by the PAP’s endless influx of their so-called “FTs” is so obvious and insidious on Singaporeans’ job security and livelihood. Yet, this government BRAZENLY up their ante on their RESOUNDING CRIES OF PAP’s brands of:
- “Foreign Talents” to augment “daft not hard-driving hard striving Singaporeans”.
- “Foreign Workers” that “CHOOSEY” Singaporeans WON”T do.
- Skills-Upgrading when employers and even The Civil Service sideline older workers in favour of younger “FTs” whether they are adequately experienced or not?
- Skills Upgrading for new skills jobs? When even employers won’t employ Singaporeans for the same jobs they are qualified for both academically and experienced in? Which employer will employ an older worker when they influx younger foreign ones for cheaper and even “cheapo” ones for The Civil Service and the Private Sectors? With government leading as the singularly biggest employer and not including their GLCs and subsidiaries!
Altogether, are PAP’s claims “Tall Stories” and “Tales of Deceptions” or not is for every Singaporean to understand, fathom and decide rationally!
U.S Labor Dept:
Singapore has steepest productivity decline and lowest increase in hourly wages in 2007 – 2010. According to a shocking press release from the U.S. Department of Labor last year, Singapore experienced the steepest decline in productivity among 17 developed economies in the world in the years 2007 – 2008.
Not only that, it had the lowest increase in the hourly compensation per unit labor cost and one of the highest increase in manufacturing unit costs as well.
The detailed article was not reported by the Singapore media. Neither was it mentioned by Finance Minister Tharman last week which would have greatly embarrassed the PAP government.
Steepest productivity decline among the 17 countries, the Republic of Korea and the United States had the largest increases (1.2 % each) while Singapore had the steepest decline (-6.6 %):
Singapore has the second highest increase in manufacturing unit costs when the figures are expressed in national currency units at 7.5% after Denmark’s 8.3%:
Lowest increase in hourly wages:
Hourly compensation in manufacturing increased in 2008 in all 17 economies. The largest increase was in Norway (+ 5.6%), followed by Spain (+4.8%).
Singapore has the lowest increase at only 0.5%:
Second highest increase in the number of manufacturing hours:
In 2008 total manufacturing hours worked fell in 9 economies with the greatest decline in the United States at -3.9%. Denmark has the largest increase at +2.7% followed by Singapore at +2.6% as shown by the chart above.
Analysis:
Singapore’s dismal performance in labor productivity is a direct result of the PAP’s short-sighted liberal immigration and pro-foreigner policies which help companies take the easy way out keeping labor costs down artificially by employing cheap foreign workers instead of investing in innovation and research to boost productivity.
As noted in the graph below, Singapore’s labor productivity took a plunge from 2004 onwards when the inflow of foreigners started to pick up:
This coincided with the beginning of Prime Minister Lee Hsien Loong’s tenure when he announced his ambitious plan to increase Singapore’s population to 6.5 million people by 2030 via immigration.
Foreigners now make up more than a third of Singapore’s workforce. The proportion is probably higher in the manufacturing which accounts for the low increase in hourly wages and second highest increasing in the number of manfacturing hours.
As foreign workers, especially those who are unskilled, are usually poorly trained, they contribute partially to the increase in manufacturing costs.
Instead of coming up with a comprehensive policy to reduce Singapore’s reliance on foreign workers, boost productivity rates and to safeguard the interests of Singapore workers, the PAP chose the easy way out by opening the floodgates to foreigners which temporarily help to keep labor costs low and keep the GDP growth figures artificially high.
(An unknown percentage of the PAP ministers’ multi-million salaries is pegged to GDP growth – the higher the figure, the more money they bring home.)
The few measures put in place such as the foreign worker levy and dependency ratio hardly deter companies from hiring foreign workers.
It doesn’t help that Singapore has an extremely lax criteria for PR application. The Home Affairs Ministry revealed last year that two out of every three PR applicants are successful, an astonishing high rate for a developed nation.
The Professionals/Technical Personnel & Skilled Worker scheme (or simply PTS scheme) is the easiest and most assured route to Singapore PR. It’s estimated that more than 90% of the people obtain their Singapore Permanent Residence through this scheme.
The key requirement under this scheme is that a foreign worker must be working in Singapore for at least six months on either an Employment Pass, Entrepreneur Pass, or S Pass.
Since the dependency ratio lumps both citizens and PRs as “resident” workforce, a company can circumvent the rules by simply getting earlier arrivals of foreign workers to apply for PRs and transferring them into the “resident” pool, thereby freeing up slots to employ more foreigners.
Theoretically, it is therefore possible for a company based in Singapore to employ 100 per cent foreigners with no Singapore citizens on its payroll.
The foreign worker levies for various types of visas are also ridiculously low, amounting to no more than a couple of ten of dollars. Even with the recent hike in foreign worker levy, it is still more “profitable” for companies to employ foreigners as they do not have to pay them CPF. Besides, the slightly increased labor costs can be easily transferred to the workers and consumers.
The PAP government has to accept full responsibility for Singapore’s low productivity rate. Prime Minister Lee Hsien Loong now wants to increase Singapore’s productivity to 3 per cent per annum. How is this possible when our productivity rate has been decreaasing for the last three years with the largest dip of 6.6 per cent in 2008?
DPM Teo Chee Hean still got the cheek to give himself a pat on his back by praising the “progress” made by previous productivity drives:
“We have made good progress in the past in our productivity drive and that is why we have been able to move our economy forward and have good jobs for many Singaporeans. But this is a constant effort and we have to renew and re-double our efforts,” he was quoted as saying in Channel News Asia on 28 February 2010.
What “progress” is DPM Teo referring to when Singapore’s productivity has grown by only 0.7 per cent in the last decade? What “good jobs” did the PAP create for Singaporeans when they have to compete with directly with foreigners who cost much less than them? Does he know what he is talking about? Can Singaporeans trust him to chair the National Productivity and Continuing Education Council to spear-head Singapore’s productivity drive as outlined in the Budget?
The crux of the problem lies in Singapore’s export-based economy and its perennial addiction to foreign labor, compounded by the fact that it still has not managed to make a successful transition from a manufacturing to knowledge-based economy.
Unless Singapore’s structural and political economy is completely revamped, there is no way Singapore can ever hope to boost its productivity, let alone increase the wages and decrease the working hours of its long-suffering workers which will lead to other social problems such as low birth rates, exodus of local talents to greener pastures overseas and an eventual erosion and loss of national identity.
The PAP should realize that it is the biggest stumbling block to reforming Singapore’s obsolete, uncompetitive and monopolistic state-capitalist economic system. We are doomed to mediocrity so long it refuses to relinquish its tight-fisted control over Singapore’s economy and allows the private sector to grow and flourish independently.
<HR SIZE=1>Edited 11/20/2010 8:44 am ET by ButohPAPee</TD></TR></TBODY></TABLE>
Singapore Report Card – An analysis of the PAP government
November 20th, 2010 | Author: Renny Li
Goh Chong Tong said that Singapore’s Productivity averaged 1% for the last 10 years. Yet the first of about 2.5 – 3 years of his Premiership was also part of the 10 years he spoke of the low productivity? Did he forget or was he “daft” and didn’t realise it? As he handed his PM seat to Lee Hsien Loong in 2004! All these things coming from a PAP Senior Minister so high up just goes to show how disconnected they are with events and time of even their own doing! Aren’t they then INCOMPLETE thinkers and thus NON-CRITICAL thinkers too?
Before 2004 when he was campaigning for his last term as PM (which we didn’t know!), it was all about KBE or “Knowledge Based Economy”. But then right after he got elected, KBE took a back seat and into history. Why? Seems quite unconscionable to drop such an important campaigned issue only to be dropped becoming PM for a 3rd term?
As, during his first 2 terms as PM, this was for bringing in foreign labour to mitigate our ageing population “problem”. And this problem was actually due to first PM Lee Kuan Yew’s “Stop at two” causing inadequate births to replace our ageing. Was then Lee and ALL of PAP CLUELESS? Clueless that replacement of a pair of parents requires 2.11 births? As at worse they should by common sense think like most people will, that 2 births is enough for parents replacements! But then if they did, then it can only mean they were AFTER Singaporean POPULATION REDUCTION for some strange reasons? Especially with Goh Chok Tong’s PM terms further encouraging “The less (babies) you have the more they have”! Very very strange indeed?
That said, productivity was also big GE campaigning for GCT then. But why did he add to the problem of insufficient births then by further telling Singaporeans that “The less (babies) you have, the more they have”? It now seems to be a ploy to exacerbate the ageing issue with even lower Singaporean birth rates for replacement? Thus giving rise for their arguments to replace INCREASING DROP in Singaporean s’ support for PAP. They MUST know that the GRCs has become conundrums for their “GE winning streaks” from grumbling from the ground! So, what’s their “game” plan and self-serving “plot”?
As they also enacted the Water Agreements AS problems with Malaysia and made that a big issue as well! But why so? More Red Herrings or were they groping in the dark on how to “pick” the handle of voters’ declining support from non-walkover wards? And they must know too that GRCs not contested for too long can be ones that turn the tables under their feet when a day comes that they HAVE TO declassify them in to SMCs to appease increasing dissent of PAP ways of governing! If they didn’t know, why then GRCs and other restrictive laws, OB Markers and Meritocracy conditions and claims WITHOU borders or guide posts?
It all adds up now doesn’t it? It is clearer and also clear now that they had been hatching and plotting for INFLUX of Foreigners for ALL LEVELS of work by leveraging on ageing Singaporeans. As if that was not enough, they ramped up their justification to bring in even more foreigners to also “Foreign Talents” by repeating that they bring jobs for Singaporeans! How can this be true and real when foreigners actually then began to REPLACE Singaporeans who got RETRENCHED more and more? So, not only is something was and is amiss! Because, their reasoning began “falling flat on their faces” due to even more and more PMETs losing their jobs.
And as if this RUB wasn’t enough, PAP began announcing that the employment rate has gone down to some 2%+! What is stranger still is that even the retrenched PMETs were offered lower paying jobs. With even a PRC PhD and more Singaporean PMETs becoming taxi drivers? The issue of retrenched professionals being compromised by the PAP’s endless influx of their so-called “FTs” is so obvious and insidious on Singaporeans’ job security and livelihood. Yet, this government BRAZENLY up their ante on their RESOUNDING CRIES OF PAP’s brands of:
- “Foreign Talents” to augment “daft not hard-driving hard striving Singaporeans”.
- “Foreign Workers” that “CHOOSEY” Singaporeans WON”T do.
- Skills-Upgrading when employers and even The Civil Service sideline older workers in favour of younger “FTs” whether they are adequately experienced or not?
- Skills Upgrading for new skills jobs? When even employers won’t employ Singaporeans for the same jobs they are qualified for both academically and experienced in? Which employer will employ an older worker when they influx younger foreign ones for cheaper and even “cheapo” ones for The Civil Service and the Private Sectors? With government leading as the singularly biggest employer and not including their GLCs and subsidiaries!
Altogether, are PAP’s claims “Tall Stories” and “Tales of Deceptions” or not is for every Singaporean to understand, fathom and decide rationally!
U.S Labor Dept:
Singapore has steepest productivity decline and lowest increase in hourly wages in 2007 – 2010. According to a shocking press release from the U.S. Department of Labor last year, Singapore experienced the steepest decline in productivity among 17 developed economies in the world in the years 2007 – 2008.
Not only that, it had the lowest increase in the hourly compensation per unit labor cost and one of the highest increase in manufacturing unit costs as well.
The detailed article was not reported by the Singapore media. Neither was it mentioned by Finance Minister Tharman last week which would have greatly embarrassed the PAP government.
Steepest productivity decline among the 17 countries, the Republic of Korea and the United States had the largest increases (1.2 % each) while Singapore had the steepest decline (-6.6 %):
Hourly compensation in manufacturing increased in 2008 in all 17 economies. The largest increase was in Norway (+ 5.6%), followed by Spain (+4.8%).
Singapore has the lowest increase at only 0.5%:
Second highest increase in the number of manufacturing hours:
In 2008 total manufacturing hours worked fell in 9 economies with the greatest decline in the United States at -3.9%. Denmark has the largest increase at +2.7% followed by Singapore at +2.6% as shown by the chart above.
Analysis:
Singapore’s dismal performance in labor productivity is a direct result of the PAP’s short-sighted liberal immigration and pro-foreigner policies which help companies take the easy way out keeping labor costs down artificially by employing cheap foreign workers instead of investing in innovation and research to boost productivity.
As noted in the graph below, Singapore’s labor productivity took a plunge from 2004 onwards when the inflow of foreigners started to pick up:
Foreigners now make up more than a third of Singapore’s workforce. The proportion is probably higher in the manufacturing which accounts for the low increase in hourly wages and second highest increasing in the number of manfacturing hours.
As foreign workers, especially those who are unskilled, are usually poorly trained, they contribute partially to the increase in manufacturing costs.
Instead of coming up with a comprehensive policy to reduce Singapore’s reliance on foreign workers, boost productivity rates and to safeguard the interests of Singapore workers, the PAP chose the easy way out by opening the floodgates to foreigners which temporarily help to keep labor costs low and keep the GDP growth figures artificially high.
(An unknown percentage of the PAP ministers’ multi-million salaries is pegged to GDP growth – the higher the figure, the more money they bring home.)
The few measures put in place such as the foreign worker levy and dependency ratio hardly deter companies from hiring foreign workers.
It doesn’t help that Singapore has an extremely lax criteria for PR application. The Home Affairs Ministry revealed last year that two out of every three PR applicants are successful, an astonishing high rate for a developed nation.
The Professionals/Technical Personnel & Skilled Worker scheme (or simply PTS scheme) is the easiest and most assured route to Singapore PR. It’s estimated that more than 90% of the people obtain their Singapore Permanent Residence through this scheme.
The key requirement under this scheme is that a foreign worker must be working in Singapore for at least six months on either an Employment Pass, Entrepreneur Pass, or S Pass.
Since the dependency ratio lumps both citizens and PRs as “resident” workforce, a company can circumvent the rules by simply getting earlier arrivals of foreign workers to apply for PRs and transferring them into the “resident” pool, thereby freeing up slots to employ more foreigners.
Theoretically, it is therefore possible for a company based in Singapore to employ 100 per cent foreigners with no Singapore citizens on its payroll.
The foreign worker levies for various types of visas are also ridiculously low, amounting to no more than a couple of ten of dollars. Even with the recent hike in foreign worker levy, it is still more “profitable” for companies to employ foreigners as they do not have to pay them CPF. Besides, the slightly increased labor costs can be easily transferred to the workers and consumers.
The PAP government has to accept full responsibility for Singapore’s low productivity rate. Prime Minister Lee Hsien Loong now wants to increase Singapore’s productivity to 3 per cent per annum. How is this possible when our productivity rate has been decreaasing for the last three years with the largest dip of 6.6 per cent in 2008?
DPM Teo Chee Hean still got the cheek to give himself a pat on his back by praising the “progress” made by previous productivity drives:
“We have made good progress in the past in our productivity drive and that is why we have been able to move our economy forward and have good jobs for many Singaporeans. But this is a constant effort and we have to renew and re-double our efforts,” he was quoted as saying in Channel News Asia on 28 February 2010.
What “progress” is DPM Teo referring to when Singapore’s productivity has grown by only 0.7 per cent in the last decade? What “good jobs” did the PAP create for Singaporeans when they have to compete with directly with foreigners who cost much less than them? Does he know what he is talking about? Can Singaporeans trust him to chair the National Productivity and Continuing Education Council to spear-head Singapore’s productivity drive as outlined in the Budget?
The crux of the problem lies in Singapore’s export-based economy and its perennial addiction to foreign labor, compounded by the fact that it still has not managed to make a successful transition from a manufacturing to knowledge-based economy.
Unless Singapore’s structural and political economy is completely revamped, there is no way Singapore can ever hope to boost its productivity, let alone increase the wages and decrease the working hours of its long-suffering workers which will lead to other social problems such as low birth rates, exodus of local talents to greener pastures overseas and an eventual erosion and loss of national identity.
The PAP should realize that it is the biggest stumbling block to reforming Singapore’s obsolete, uncompetitive and monopolistic state-capitalist economic system. We are doomed to mediocrity so long it refuses to relinquish its tight-fisted control over Singapore’s economy and allows the private sector to grow and flourish independently.
<HR SIZE=1>Edited 11/20/2010 8:44 am ET by ButohPAPee</TD></TR></TBODY></TABLE>
