Rents and labour shortage threaten businesses

 

I refer to this article in AsiaOne:

 

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The report is correct about one thing: Singapore has been tightening restrictions, such as by increasing government levies and “minimum wages”.

Except the Reuters reporter should define what he means by “minimum wage”. What we have in Singapore, is not the traditional blanket minimum wage, enforced by criminal punishment if breached.

Singapore practices “Progressive Wage”. A model that requires the employer to provide skills upgrading, career progression, salary progression and yes, a base minimum salary to be paid. If the employer does not adopt this model, it is not criminal, but he also won’t receive the licence necessary to run his business.

Many F&B businesses have been affected by manpower policies. Foreigners are now difficult to employ and Singaporeans need to be paid more. Yes, it does make business hard to do. But you would agree with me that our wages should not suffer just because employers would find it “easier” to do business.

Yes – rental rates are also rising. The MTI might find it useful to have a look at how REITS are run and affecting the costs of property. The rentals market need some regulation, without brick and mortar businesses are hard pressed, if they can’t deliver their goods – they will shut.

Between a work-force that needs to be paid more, and a property owner who wants to collect more rent, I think you won’t disagree with me the labour market needs more assistant than the landlord, no?

 

 

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