Indeed, it is an LPPL move....
I feel our gov should consult real world economists in the USA for
better ideas than their usual sleep over night ideas...
Seems every step they make (purportedly for the people), the
repercussions incurs two three steps backwards!
They running this country like a friggin ill-managed
company!!
=====================================================
Proposed increase in CPF contribution could hit some
businesses: analysts
By Wong Siew Ying, Channel NewsAsia | Posted: 01 January 2007 1954
hrs
SINGAPORE : The prospects are looking up for Singapore this
year.
And if it stays that way, workers could be enjoying a 1 to 2
percent increase in their employer's CPF contribution rate, as
indicated by Prime Minister Lee Hsien Loong in his New Year's Eve
speech.
While many, including unions, are upbeat about the move, analysts
say it could hit some businesses.
The retail sector has probably seen better days.
And the year 2006 was not one of them, according to market
watchers.
Sales did not rise in tandem with economic growth.
And retailers who have not done well will count among those who
will feel the heat of the suggested CPF restoration.
Song Seng Wun, Regional Economist, CIMB-GK Research, said, "Not
everybody has ride along that growth and now, with the government
saying that your labour may cost more because you are paying more
for CPF, will be an added burden because in this environment, what
we are seeing is wage cost is going up quite steadily and you are
also seeing rentals going up as well, be it in big fancy malls that
have opened up or be it office space...that has gone up as
well."
A way around this is to allow companies more flexibility in hiring
foreign workers, as well as encouraging them to recruit older
Singaporeans.
Mr Song says the business environment will get more challenging but
Singapore's investment in science and research is likely to pay
off.
He said, "Beyond the next couple of years, as we continue to put
more R&D into especially the chemical and manufacturing
sectors, perhaps we will see value added contribution from these
sectors come back to sustained GDP levels of 5 to 6 percent,
compared to previously where we were talking about long term growth
of Singapore at 3 to 5 percent."
The construction industry is also expected to create more jobs and
expand between 3 and 5 percent this year.
Analysts add that the construction sector is finally in the black
for the first time after five years.
The outlook seems bright this year, but analysts say issues like
the bird flu, terrorism and volatile oil prices will remain a thorn
in the side.
And on top of that, a weakening US economy could also affect
exports in the region. - CNA/ms
