By Teo Xuanwei, TODAY | Posted:
04 February 2010 0733 hrs
SINGAPORE: Several opposition parties have responded to
the Economic Strategies Committee's (ESC) report and in general,
they felt the recommendations were a thrust in the right direction
- though more could be done.
While the Workers' Party will give its views when Parliament
debates the Budget in March, when Singapore People's Party
secretary-general Chiam See Tong will also have a chance to
respond, other parties not represented in Parliament seized the
chance to comment yesterday.
The Reform Party and National Solidarity Party (NSP) cited similar
aspects of the report for discussion: The lot of low-wage workers,
ways to help local small-and-medium enterprises and how the economy
should grow.
In a media statement, Reform Party secretary-general Kenneth
Jeyaretnam called for a minimum wage - in tandem with the proposed
hike in foreign worker levies - to "force" employers to use labour
more productively. He said the ESC's suggestion to raise levies
"may be a means of achieving the same goal but does not directly
raise or put a floor under the wages of less-skilled Singaporean
workers".
He added: "It may look more efficient on economic grounds, but if
employers go further afield in search of cheaper and cheaper
labour, it may nullify the effects of the increased levy."
The NSP did not offer suggestions on how to help low-wage workers,
but secretary-general Goh Meng Seng felt the ESC should not dissect
the economic issues without considering the social, cultural and
political ramifications. "We need a more holistic approach instead
of formulating quick fixes for short term gains," he said.
On ways to encourage more start-ups, both parties agreed
Government-linked companies hindered the growth of local SMEs. The
NSP said the Government should "provide funds and facilities for
technological research and upgrading SMEs into Original Equipment
Manufacturers". If not, local SMEs would remain "mere vendors
providing parts and services for MNC plants".
Mr Jeyaretnam suggested "dismantling or privatising the whole GLC
structure", including Temasek Holdings and the Government of
Singapore Investment Corporation.
On the ESC's suggestions for growing Singapore into a Global-Asia
Hub, the Reform party said manufacturing should eventually comprise
less than 20 to 25 per cent of the economy, as suggested by the
ESC, "given Singapore's limited land and other resources".
Mr Goh suggested wooing regional economies to overcome constraints:
"There's no mention whether Singapore will work actively towards a
more comprehensive free trade zone in South-east Asia."
He also expressed concern at the possible plan to price energy to
reflect real costs.
"Singapore's energy pricing is already on the high side in this
region. We should take care of implementing pricing policy that
would affect our cost of living, as well as doing business," he
said.
The possibility of nuclear energy as an option for Singapore
worried both parties, due to Singapore's small size and dense
population.
Moreover, on the ESC's overarching theme of improving productivity,
the Reform Party said it "supports in-principle the idea of a
high-level national council to boost productivity".
As for higher investments in education, Mr Jeyaretnam said the
target amount should rise to between 5 and 6 per cent of gross
domestic product, from the current average of 2.8 per cent over the
last five years, to be on par with other advanced countries.
Meanwhile, the Singapore Democratic Party called the ESC's
suggestions "old wine in a new skin". SDP secretary-general Chee
Soon Juan said: "Save for the development of nuclear power, haven't
we heard all this before?"
He cited examples such as the Government's National Technology Plan
in 1991 to become a world-class innovation-driven economy by 1995;
the SME21 plan in 1996, targeted at helping start-ups; and the 2001
Economic Review Committee report, which touched on using levies to
regulate the demand for foreign workers.
"If all these initiatives had been effective, why the persistent
problem of declining productivity and the need for another report?"
he said.
Dr Chee said it will present "concrete alternative proposals in the
days and weeks ahead".
- TODAY/sc
