Average income of low-wage workers up over past two
years
SINGAPORE: Low-wage workers, who form 20 per cent of the
workforce in Singapore, are earning more now compared to what they
did in 2006.
For instance, workers who earned about S$1,200 have seen wages rise
by 9 per cent, according to the latest government report. But as
the economy worsens, bigger challenges lie ahead.
Zalina Abdul Gani is one worker who has benefited from various
government schemes designed to give low-wage employees a
leg-up.
She took a course with the Workforce Development Agency (WDA) and
with the help of her local community development council, found a
job as a kitchen helper at a sushi chain.
"I was working full-time at Hei Sushi, but because of the
recession, I switched to part-time. I accept it – it's better than
not having any job, or being retrenched," Madam Zalina said.
In a progress report on low-wage workers, those who earned a
monthly wage of S$1,200 in 2006 saw their salary go up to S$1,310
last year.
The number of low-wage workers – defined as those who earned
S$1,200 or less in gross monthly income – has also gone down.
For instance, the number of low-income employees has fallen from
360,000 in 2006 to 300,000 in 2008. The income gap also narrowed in
2008 – the first such decline in a decade.
But those were the boom years.
With Singapore stuck in a deepening recession and retrenchments set
to rise, the outlook for low-wage workers is not great.
From 2006 to 2008, the government spent over S$1.1 billion to help
low-wage Singaporeans. It is presently reviewing its programmes,
such as the Workfare Income Supplement scheme, to see what else it
can do.
Manpower Minister Gan Kim Yong said: "This economic downturn will
affect Singaporeans across the board, whichever wage category
you're in. But we'll continue to monitor and help the low-wage
workers.
"For those who've tried very hard and yet are unable to find a job
for a variety of reasons, there will still be help schemes under
the normal Comcare Fund, which the MPs and the community
administer. They can approach their MPs for help, specifically if
they have financial difficulties."
At a dialogue session with Tanjong Pagar GRC residents on Sunday,
the issue of foreign workers and foreign talent came up again, with
many expressing concerns over what they saw as unfair
competition.
"Singaporeans are affected. Some of them have lost their jobs and
rightly or wrongly, they think the foreigners are taking away their
jobs. I think we can understand and empathise with the feelings,"
said Mr Gan.
"To keep the foreigners out may be very appealing to the locals,
but it may not be the right approach for Singapore in the long term
because it will then undermine the basic economic fundamentals. And
if we do so, it will affect our long-term economic position."
The manpower minister added that the government will work the
ground better to explain its policy, especially during the
downturn, when tensions between foreigners and Singaporeans are
expected to rise.
- CNA/so
