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Local as well as international experts are saying that
Singapore’s economy cannot continue to grow under the present set of PAP
policies of depending so heavily on MNCs and GLCs. The present recession is a
manifestation of the economic direction taken by the PAP. To alleviate the
problems that confront the economy, the SDP proposes two sets of solutions for
the immediate term (next 1-2 years) and the longer-term (within the next 5
years).
Immediate Term
Many Singaporeans have been retrenched or have seen their wages cut because of
the recession. Under the present system these workers have little financial
protection when they are retrenched. Adding to the worsening situation is the
PAP's ill-conceived foreign talent policy. To remedy the situation, the SDP
proposes:
• A minimum wage policy. The DOS has reported that while Singapore's GDP per
capita income is $23,000, its wage structure is closer to that of the Third
World. Such an economic arrangement is not good for long-term growth. Ensuring a
minimum wage for the lowest of the low-skilled employee guarantees that
prosperity is shared by all. Legislation is needed to prevent Singaporean
workers from being exploited and ensure that employees be paid fair wages for
their work commensurate with the cost of living. For a start, the minimum wage
should be set at $5 per hour.
• Retrenchment entitlements. Presently when a worker gets retrenched, he or she
is left out in the cold with no financial protection. This cause severe strain
on the entire family with serious social repercussions. Under the SDP proposal,
the Government will pay all retrenched workers their full salary for the first
six months. This amount would be reduced to 75 percent during the next six
months, and further reduced to 50 percent in the third six months. Each worker
will be allowed to reject only up to three job offers in the one-and-a-half
years following which the retrenchment entitlement ceases. Such a scheme will
provide workers a cushion when they are retrenched while at the same time
encourage them to seek employment.
• Singaporeans First Policy. The PAP's foreign talent policy adds to the burden
of Singaporeans by indiscriminately allowing foreigners to seek employment here.
The SDP will push for a Singaporeans First Policy, which will insist that
employers retrench foreign workers first and only lay off Singaporean workers as
a last resort. In addition such a policy will require the Government and
employers to employ foreigners only if locals cannot be found for the job. This
will ensure that only qualified foreigners will be allowed into Singapore.
Longer-term
To ensure long-term, sustainable economic growth, the SDP proposes the
following:
• Scale back GLCs. Pretend as they might, GLCs cannot provide, much less
sustain, economic development in Singapore. They must be dismantled and, in
their place, local private companies must be allowed to surface and be given the
chance to compete internationally, with the government playing only a supporting
role. The SDP advocates that, with the exception of PSA and SIA, the Government
privatises all other GLCs within the next five years. Every year the PAP drags
its feet is every year Singapore loses its ability to compete at the
international level.
• Protect local companies from MNCs. If Singapore is going to assist local
private companies in becoming more competitive it must wean itself away from
dependence on MNCs. Many countries have strengthened their economies without the
MNC crutch. Asia abounds with examples, including Japan, South Korea, and
Taiwan. Where MNCs are permitted in these countries, they are also given
attractive financial incentives. These incentives are, however, clearly spelled
out, as are agreements as to what and how technology transfer is to take place.
Today Japan, South Korea, and Taiwan boast corporations that have become
world-beaters in technology and innovation. In Singapore, however, reliance on
MNCs has consigned the people to an economic system that breeds more model
employees than visionary entrepreneurs. This means that Singapore will forever
be at the mercy of foreign investors on the lookout for cheaper wages.
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