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Serious Sinkies' Salaries are Too High! Recession due to Sinkie Very High Salary Demands!

Pinkieslut

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High wages flash recession warnings in Singapore

Sun Aug 21, 2016 | 11:40 PM EDT

By Jongwoo Cheon and Marius Zaharia | SINGAPORE

(Reuters) - SaladStop owner Adrien Desbaillets has eased off on expansion plans for his organic food chain in Singapore because high wages are pressuring profit margins at a time when the affluent city state is grappling with low growth and slack global demand.

Instead Desbaillets is branching out in Manila, Jakarta and even in wealthy Tokyo in a worrying sign for Singapore's small, open economy.

Indeed, while the city state's economy is expected to grow between 1-2 percent for the year, analysts say the wage-cost pressures are flashing warnings of a recession.

At roughly 43 percent of gross domestic product - though below the 55 percent world average - wage costs in Singapore are now at levels which historically had preceded recessions in 1985, 1997 and 2001.

The trouble is that the higher wages are raising business costs at a time when export-oriented Singapore has been hard hit by a cooling China, subdued domestic consumption, a downturn in commodities and global uncertainty due to Britain's vote to leave the European Union.

"We would have opened two or three more outlets in Singapore if it weren't for the high wages ... and we would have taken on more projects," said Desbaillets, whose chain has 15 outlets in Singapore, eight in Manila and is due to open in Jakarta and Tokyo in October.

"We've been able to hedge our risk a little with our expansion abroad."

Desbaillets pays his Singapore staff S$1,600 to S$3,200 ($1,191 to $2,382), versus S$300-S$400 in Manila.

His business is growing, but others with less firepower are struggling. They include the majority of the 12,000 companies that Kurt Wee, President of the Association of Small & Medium Enterprises, represents.

"We've started hearing of decisions to call it a day," Wee said.

The figures are telling.

Almost 42,000 businesses ceased in the first half of this year versus nearly 49,000 in the whole of 2015, government data shows.

Total nominal wages rose 4.6 percent per year on average over the past decade, compared with a 0.5 percent average annual growth rate of value-added per worker in that period.

And recent data showed the unit labor cost index hitting a record high of 116.7 in the second quarter.

Trinh Nguyen, Natixis' senior emerging Asia economist says this increases recession risks.

"It squeezes firms' profit margins and erodes exporters' ability to compete," Nguyen said. "While they cannot earn more money externally ... they cannot reduce cost structures."

"TOKEN LOCALS"

Singapore is the fourth most expensive city in the world, according to Mercer, a global consultancy. The high wages partly reflect that. But they would have been lower without the curbs on foreign workers introduced in 2011 amid disquiet over immigration.

The tighter rules also hurt productivity, recruiters say.

"Anecdotally, companies are known to have hired token locals – employees needed to meet quotas so that the company can hire another foreigner," said Lee Quane, Asia director at recruiting consultancy ECA International.

A shortage of talent in sectors like IT and life sciences means wages in those industries grew faster than the economy, recruiters say.

Simon Lee, CEO of IT company Thatz International Pte Ltd, is looking for merger opportunities to save on the cost with "HR, finance and admin." But he remains frustrated with the tight labor market:

"Maybe we are killing the geese that lay the golden eggs."

(Additional reporting by Masayuki Kitano; Editing by Marius Zaharia & Shri Navaratnam)
 
tell him to fuck off to pinoyland then,u want to earn in sgd but u bitch about paying a singaporean wage.our one jollibee outlet was the highest grossing among all jollibee outlets in pinoyland.and its just another fast food outlet in singapore.

sonofabitch i never heard of any of these businessmen complaining singapore's wages is lower than any of the developed western countries,but they compare us to shitholes like pinoyland.all these smes who bitch about singapore wages too high compared to manila,indoland and other third world shit holes need to sound out so i can boycott all of them.u want pay third world wages dont fucking do business with us!!!!!how about u charge us the same cost of goods as u do in pinoyland?
 
Sinkies in general are lazy and ask for too much money. Mind you, asking a part-time student to do some simple task is like asking them to do a mega big project and expect to be paid alot!
 
Sinkies in general are lazy and ask for too much money.
Totally agree. Sinkies' real worth has been over-estimated like 10 times. Please tell your gabrament to bring more foreign talents from PRC, India and Philippines. These three countries produce real talents and definitely cost much less to employ.
 
Sinkies in general are lazy and ask for too much money. Mind you, asking a part-time student to do some simple task is like asking them to do a mega big project and expect to be paid alot!

Dont blame us,we are just following the example set by our leaders,of demanding the highest pay while delivering the least amount of usefulness.
 
Wages are always higher in developed countries ...you can't be developed and yet pay third world wages.

Comparing our wages to Pinoyland is like comparing the lifestyle of the rich versus those who lives in the slump.

We don't need more eating outlets ...those are not the kind of jobs that this country needs.

As for the IT jobs ...if those idiots running those shops are of any good, they would be using offshore coders and develop the brain team here. Instead, they bring in coders from Ah Neh land.

We have the most expensive government, yet they can't solve a problem that cheaper governments in developed countries have already solved.
 
They dont understand the economy is a self reinforcing cycle,if u pay workers less,the population would have less disposable and discretionary income,spending goes down,retail and businesses suffer and the economy tanks.the only way to boost economic spending is to raise minimum wage to $16 an hour.
 
Totally agree. Sinkies' real worth has been over-estimated like 10 times. Please tell your gabrament to bring more foreign talents from PRC, India and Philippines. These three countries produce real talents and definitely cost much less to employ.

Sinkies = over-estimate themselves and ask for too much money
Pinoys = speak rubbish English, and has half the efficiency of Sinkies. Luckily also ask for half the salary too.
PRCs = educated ones speak English with a heavy accent. Too cunning. Ask for maybe half the salary of Sinkies too.
 
I pinned this article up for my serfs to see. None of them now dare to ask for a raise.
 
Singapores wage level is at 43 percent gdp,below the world average of 55% of gdp,we are not even comparing to developed countries,our country is producing a great amount of wealth but none of it is going to our citizens pockets.where is all the money going?enough of this bullshit already.I had enough of the muthafarking snakes in this mutharfarking island.
 
I am surprised this shop even last so long here. The owner expects to run with high cost of rental, goods, etc., and yet wanted low pay for human resource which is a revenue generator?

Try pay your sale people peanuts and see what he will get. Monkeys! And he expect to run a profitable business with costliest overhead while having monkeys doing the business for him?
 
I am surprised this shop even last so long here. The owner expects to run with high cost of rental, goods, etc., and yet wanted low pay for human resource which is a revenue generator?

Try pay your sale people peanuts and see what he will get. Monkeys! And he expect to run a profitable business with costliest overhead while having monkeys doing the business for him?

Sinkapore is proof u dont need quality human resource to generate revenue,cheap Labour,low taxes,low quality and high prices and a monopoly of suckers will ensure good profits all day everyday.
 
Of course salary here is high lah.. our ministers have the highest salaries in the world... the workers are pegged to that mah.
 
Sinkies in general are lazy and ask for too much money. Mind you, asking a part-time student to do some simple task is like asking them to do a mega big project and expect to be paid alot!

Fucktard pap dog

Let's start by cutting your fatty pap ministers and MPs pay. Cheebai to you.
 
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