It's not just cost-cutting, there's....(is this)... the PLAN

Atobe SG

In classic Ruling Party style, the main issues are avoided.

While acknowledging that cuts to the Wages and CPF are necessary factors, the stubborn refusal to even consider the cuts to other "Costs of Enterprise" remain.

This is not the first time that MPs from the Ruling Party are speaking the facts as it is, and yet the Government of the Ruling Party refused to pay its OWN price, by adjusting its policies - with cuts to taxes on a variety of goods and services - to strengthen Singapore's resilience.

The Government continue to take advantage of the helpless Citizens' ability to defend their own wage and CPF levels - (as the Citizen has been beaten into silence by legislations that prevent any form of Public Demonstrations) .

The Government has the cheek to chide Singaporeans for not being flexible when there are "around 200,000 foreigners in the manufacturing and services sectors, there are enough jobs here for the 85,000 jobless Singapore residents" - and that "STMicroelectronics found just 19 Singaporeans for 400 jobs at its wafer fab plant last year".

It is common knowledge that of the 85,000 jobless Singaporeans, many are from the "white collar" sector - from the Service Sectors of Finance, Services, and Trade Sectors.

These jobless are the Managers, Secretaries, Account Clerks, Bank Tellers, who were thrown out of work by the Government insistence on Bank Mergers. Other similar workers are from the likes of Singapore Airline retrenchment exercises.

At least 5,000 was retrenched when DBS took over POSB, while UOB took over OUB, and OCBC taking over Keppel Bank (who had earlier absorbed Tat Lee Bank); and Straits Times had reported that S.I.A will trim staff strength by 3,000 before end-2003.

From the 85,000 we have accounted for 5,000 workers from the banking sector and 3,000 from Singapore Airlines.

What about those remaining 77,000 workers that come from the various small businesses service sector that were forced to retrench administrative, service and support staff due to the effects of SARS on the Tourist Industry ?

Does the PM and the Cabinet believe that the 85,000 jobless Singaporeans are suitable candidates to work in those 200,000 jobs taken up by foreign workers ?

Have they forgotten that their own idea was for Singaporeans to take on the high paying lead role in design, management and engineering jobs, while the cheap foreign workers were to perform the menial tasks of repetitive work ?

It's not just cost-cutting, there's a plan...
S'pore has an economic blueprint, says PM Goh, responding to MP who claims the Govt has no long-term recovery strategy

By Audrey Tan

SINGAPORE does have an economic plan and the cuts in the Central Provident Fund (CPF) rates will enable Singapore to compete better and benefit from the improving external environment, said Prime Minister Goh Chok Tong.

The 15-year plan also extends well beyond mere cost-cutting, Mr Goh added, reminding some MPs that the economic strategy was laid out by the Economic Review Committee (ERC) early this year.

He was taking issue with Mr Inderjit Singh's (Ang Mo Kio GRC) claim that the Government did not appear to have an overall strategy for economic recovery.

Mr Goh said: 'I remind him that in December 2001, I set up the ERC to comprehensively review policies and propose strategies to promote the further growth of the Singapore economy.'

The ERC made its recommendations in February, 'so I do not understand why Inderjit Singh said the Government did not have an economic plan. Has he not read the ERC report?'

Mr Goh then went on to recount the five key thrusts of the ERC's economic blueprint: offer something that competitors cannot, expand Singapore's economic space by going global, climb the value chain in manufacturing, grow the services sector and encourage entrepreneurship.

The plans have begun to bear fruit, he said, pointing to the free-trade agreements (FTAs). They have given companies tariff-free access to a combined market of one billion consumers.

Because of the United States-Singapore FTA, Singaporeans in Silicon Valley save 4 to 5 per cent off the price of Tee Yih Jia's popiah and roti prata and Thong Seik's fishballs, he noted.

FTAs also make certain goods cheaper here. A six-pack of Asahi beer sells for $17, down from $20.

In manufacturing, Mr Goh said Singapore retains a competitive edge in higher-end manufacturing and is continuing to build up its research and development capabilities.

The country is also making strides in new services sectors such as health care.

And as evidence of a 'blossoming of entrepreneurs', he added, even established companies, like barbecued pork retailer Bee Cheng Hiang, are not short of ideas.

The company now offers a crispy variation of its traditional product for the health-conscious and also collaborates with Pizza Hut and BreadTalk to offer pizza and bread with its products.

'Our economic strategy does not focus only on cost-cutting. We cannot possibly compete on costs alone,' Mr Goh concluded.

Reacting to Mr Goh's comments, Mr Singh said last night that while he is convinced by the ERC's 15-year strategy, he also hoped the Government will address 'what else needs to be done in the near term'.

For example, companies may be leaving Singapore not just because of wage costs, he said. '(Is it) land costs, costs of compliance to regulations, government charges?'

Mr Goh, in his speech, acknowledged that these factors were also important, but maintained that a cut in wages was no less crucial in the current environment.

External developments like terrorism and Sars, plus the rise of China and India, have slowed down Singapore's economic growth.

'We are like a sailboat, dependent on the wind to move,' he said.

'When global demand picks up, we want to be there to catch the wind. In this regard, cutting CPF costs is like throwing overboard some of the weight in our sailboat.'

While Singapore must prepare for more shocks, Mr Goh said external conditions were improving. 'Already, visitors are returning. The manufacturing sector is seeing signs of a pickup. Other businesses, too, are more optimistic.'

Despite these positive signs, Singaporeans have to be practical about jobs.

With around 200,000 foreigners in the manufacturing and services sectors, there are enough jobs here for the 85,000 jobless Singapore residents, he said.

But Singaporeans continue to shy away from some jobs. For example, STMicroelectronics found just 19 Singaporeans for 400 jobs at its wafer fab plant last year. Its problem persists.

'If we change our mindset and move away from our comfort zone, we need never be out of work,' Mr Goh said.

Viper52 SG

Originally posted by Atobe:
In classic Ruling Party style, the main issues are avoided.

While acknowledging that cuts to the Wages and CPF are necessary factors, the stubborn refusal to even consider the cuts to other "Costs of Enterprise" remain.

This is not the first time that MPs from the Ruling Party are speaking the facts as it is, and yet the Government of the Ruling Party refused to pay its OWN price, by adjusting its policies - with cuts to taxes on a variety of goods and services - to strengthen Singapore's resilience.

The Government continue to take advantage of the helpless Citizens' ability to defend their own wage and CPF levels - (as the Citizen has been [b]beaten into silence by legislations that prevent any form of Public Demonstrations) .

[/b]

Originally posted by Atobe:

Reacting to Mr Goh's comments, [b]Mr Singh said last night that while he is convinced by the ERC's 15-year strategy, he also hoped the Government will address 'what else needs to be done in the near term'.

For example, companies may be leaving Singapore not just because of wage costs, he said. '(Is it) land costs, costs of compliance to regulations, government charges?'

Mr Goh, in his speech, acknowledged that these factors were also important, but maintained that a cut in wages was no less crucial in the current environment.
[/b]

As usual, wage cuts and lowering labour costs is the be-all and end-all solution to Singapore's economic problems. He goes on and on about how we must lower labour costs, ask for less etc etc but conveniently dodges Inderjit Singh's very valid questions about lowering overall business costs in Singapore. We all know that a cut in wages is important Mr Goh, it has already been drummed into our heads ad nauseum, but since you yourself have said that the other factors are important, why don't the government go and bloody do something about it??

Lowering labour costs is only PART of the solution, time and time again independent observers/economists have reiterated that Singapore has to lower everything from labour costs, corporate taxes and land costs (artificially inflated) among others.

Why doesn't the Ruling Party get it? Or they know but refuse to accept the fact that they must suffer along with the citizens to tide Singapore over this period?

Singaporeans are unhappy not because they have to take the bitter pill. They are unhappy because they see the Ruling Elite stubbornly refusing to take the bitter pill along with them.

Whatever happened to "We're all in this together", which was another GE 2001 promise? Or this is one promise they can't keep as well because they're "flexible" to "changed circumstances"?

Atobe SG

SHOCKING - that in these days of cost cutting, the Singapore Sports Council should see fit to raise entry charges to Public Swimming Pool - (claiming that charges have remained the same for the last SIX YEARS).

Now that cuts have been made to Workers' Wages and CPF, resulting in less amount available for necessities and to meet financial obligations, the most unkindest and insensitive insult is to raise the charges to a simple recreation facility.

INSENSITIVITY and sheer irresponsibility are the words left to describe the stupidity of the Management Council of the Singapore Sports Council.

Who may the Chairman be, but a Cabinet Member from the Ruling Party ?

Should he reverse this insensitive action, does he expect us to feel grateful for his heroic gesture ?

It shows stupidity and sheer idiocy in his condescending attitude to exercise ministerial influence as an afterthought to influence the reversal of such policies - which seems to be a common action of late, when Cabinet intervention is needed for stupid actions that have been taken.