Are u referring to the "30%" variable wage component reform that
was harped? I think that will be very painful if it ever comes into
effect.
I spoke to with someone who just returned from China.
His observations as a whole is that many international companies
these days are no longer just investing there, it was come to a
point that to remain competitive even in their own home markets it
is becoming necessary to base more and more of their operations
there.
Last year China broke their own record, foreign direct investment
reached all time high of USD140 Billion. This year's investment has
already surpassed that figure.
GDP is maintained just under 9.8%, to the chinese officials as long
as it doesn't go below 8% they are are happy.
In singapore, our growth is only 4.5% and already champaigne
bottles can be heard popping.
I think in the years to come it will be a very challenging for us.
It would take a miracle not to implement that wage reform.
