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Wages of Singaporeans declined by 3.2% as PAP ministers increase their own pay by 8.8%

Written by Our Correspondent

When one has the most expensive government in the world, it is natural to expect out of the world performance from it.

However, life seems to getting worse for Singaporeans as their wages continue to decrease in the face of rampant inflation, especially the prices of public housing.

According to the Labor Report released by the Manpower Ministry yesterday, wages of Singaporeans have decreased by 3.2 percent in 2009.

“Nominal earnings decreased over the year by 1.6% in the fourth quarter of 2009, easing from the 3.0% decline in the preceding quarter. Earnings in 2009 declined by 2.6%, after rising by 5.4% in 2008. After adjusting for inflation (2009: 0.6%, 2008: 6.6%), the decline in real earnings was 3.2% in 2009, deeper than the contraction of 1.2% in 2008.”

[Source: Ministry of Manpower]

As we can see from the above graph, both Singapore’s labor productivity and real earnings decline for the second consecutive year under the PAP.

The report appears to corroborate a comprehensive study conducted by Swiss bank UBS last year which found that “the average Singaporean experienced an 8 percent drop in gross wages, from $11.85 an hour to $10.85 an hour between 2006 and 2009.”

The UBS study findings were dismissed by PAP MP Halimah Yacob in Parliment. She claimed that “anecdotal evidence” showed a significant “jump” of about 20 percent in wages over the period.

“The discrepancy could have come from the limited sample of firms in the UBS study. The study’s figures do not give statistical averages as it covered only a few companies for each profession and city,” she suggested.

According to a recent Wall Street Journal editorial, the relentless influx of foreigners into Singapore over the last few years has depressed the wages of ordinary, decreased labor productivity, increased the cost of living, especially that of public housing and led to an overall decline in the standards of living.

In his recent Budget speech, Finance Minister Tharman claimed that “the healthy growth of wages for low wage families from 2006 to 2008 corresponded with the period when the foreign workforce was growing most rapidly.”

“It was how we were able to offset the decline in wages for our lower-income group that had taken place in the first part of the decade,” he added.

It seems that the PAP ministers and MPs do not really know what is going on judging from their ignorance of the official statistics provided by the Ministry of Manpower.

Even as Singaporeans continue to suffer from declining wages under PAP rule, the PAP has been quick to increase the salaries of its ministers and other political appointees by a hefty 8.8 percent which will cost Singapore taxpayers another whooping $58.7 million dollars.

A certain percentage of their pay is pegged to GDP growth – the higher the growth, the more money they bring home.

Singapore’s GDP growth over the last few years was fueled largely by the easy availability of cheap foreign labor which helped to keep labor costs down, thereby increasing the GDP.

It is quite obvious that the fruits of Singapore’s economic growth were not shared equally among all Sinagporeans with the rich getting richer and the poor getting poorer with the end result that Singapore has the highest income gap among developed economies after Hong Kong.

Not that the PAP cares much anyway. Its octogenarian leader Lee Kuan Yew said during the Kent Ridge Ministerial Forum last year that Singapore’s widening income gap is an “inevitable” consequence of globalization and it matters little so long the government is able to create jobs for Singaporeans.

His views were supported by Mdm Halimah Yacob who said in Parliament lately that the “greatest dignity” the PAP can give Singaporeans is the “dignity of having a job” never mind if it pays sufficiently to maintain a decent standard of living.

With no opposition in Parliament to check on the PAP, Singaporeans will have no choice but to continue to slog for longer hours for less pay.

 

The UBS Study: Prices and Earnings, 2009:

>> Part 1: Singapore has lowest wages and domestic purchasing power among Asian Tigers

>> Part 2: Moving towards a Russian standard of living

>> Part 3: Why Singaporeans are paupers in a first world economy

 

Related articles:

>> Halimah Yacob refutes UBS study findings

>> Halimah Yacob: Productivity drive will be derailed if foreign worker challenge not addressed 

>> Exposing the six major flaws in the PAP’s immigration policies

>> Wong Kan Seng promises to tighten immigration policies

>> SM Goh: Foreign workers numbers may still rise

>> Malaysian car mechanic applying for Singapore citizenship

>> PAP launches Singapore Citizenship Journey to help new citizens integrate

>> Compulsory for new citizens to attend “sharing sessions” with grassroots leaders

>> Wong Kan Seng urged Singaporeans to be more tolerant of foreign workers

>> Tharman: Foreign workers increase income of low-income families

>> Sylvia Lim: Pace and influx of foreigners over last few years is wrong

>> Amy Khor urges Singaporeans to welcome foreigners

>> PAP MP wants more money to be spent to make new citizens feel welcomed in Singapore

>> Shanmugam: Foreigners generate jobs for Singaporeans

>> Vivian happy there are 4,500 new citizens serving as grassroots leaders

>> Cosmetic changes made to immigration policy

>> SM Goh: New immigrants needed to make up population shortfall

>> PAP ministers hailed contributions of foreigners

>> SM Goh expressed support for Zhang Yuanyuan

>> State media: citizens have more rights over PRs

>> Zhang Yuanyuan got her Singapore PR in only 2 months

>> Official reply from government on the Zhang Yuanyuan fiasco

>> Singapore PRC PR proclaimed loyalty to China publicly

>> PRC resident hung China flag to celebrate its National Day

>> PRC student in Singapore wants more scholarships for foreigners

>> PRC prostitutes solicit for customers on Singapore’s cyberspace

>> ERA: 40 per cent of resale flats buyers are PRs

 

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38 Responses to “Wages of Singaporeans declined by 3.2% as PAP ministers increase their own pay by 8.8%”

  • Tharmama Shop Pte Ltd:

    Tharmama and Halimama, read this article before you carry on farting all the wrong noises la, get in touch with reality instead of trying to hoodwink sporeans into believing our real incomes having really increased and cost of living (including the very very very expensive ‘public’ housing’) has remained stable. Your farts are not only smelly, but also toxic!

  • Old Guy:

    Only the RICH gets richer

    The POOR or WORKING gets poorer

    why?

    because singapore is a CAPITALIST nation

    Got Money will make More Money

    No Money, then have to work

    BUT the RICH who have lots of $$$ and power

    will try and make your wages down, down, down..

    till you scared and kowtow to your boss not to fire you..!!

  • PAP KIASU:

    oh, I am sickening and tired of this Gahment, vote them out is the only solution.

  • “The UBS study findings were dismissed by PAP MP Halimah Yacob in Parliment. She claimed that “anecdotal evidence” showed a significant “jump” of about 20 percent in wages over the period.”

    I really wonder where our voted MP got her sources from claiming that there was 20% jump in wages. Did she obtained her collected samples from the people in the town councils, cabinet ministers or MPs. If UBS credibility cannot be trusted, then I really have to applaud our PAP government for investing so much money in that non credible bank.

  • George washington:

    PAP has been increasing btheir salary at rates that don’t match and way above economy growth, the only way to stop this is to send 15 opposition MP to Parliamnet, the good ones.

    This blood sucking MUST BE STOPPED

    also ask govt to disclose fully by mean salary for every 10 new jobs, how many go to local ?

    Gan Kim Yong can answer that

  • Tak Boleh Tahan:

    What the hell is Halamah talking abt… 20% jump… ya..ya..ya.. Jump down have lah.. Wah lau.. Tak Boleh Tahan… leh….

  • sad:

    TKL blog
    Kenneth Jeyaretnam, whose late father and veteran opposition leader
    was bankrupted in defamation lawsuits by the ruling People’s Action Party (PAP),
    said his two-year-old Reform Party was encouraging people
    to come out and offer different views.

    “Firstly, do not be afraid. You have a right to exercise, to have a say, in how your country is run,”
    Jeyaretnam told Reuters in an interview at his apartment…

    “Singapore is not going to collapse.
    Competition in politics is as necessary as it is in economics to ensure efficiency.”

    He is absolutely correct. I have been voting opposition while i am woking with government.

  • Huh??:

    If the PAP pay hike goes through, my vote goes to the Opposition regardless of who stands for election.

  • horga smes:

    I got a feeling that singaporeans who still have a job would continue to support them. Apathy could mean closing eyes to the known concerns and issues.

    who would those who got winfall from enbloc support?
    who would certain sector employee support?

    who would award winners support?

    self is really important.

  • Political SalesMaN:

    Our Paliament can consist of Liar, Robber, Manaice,Pig, Dogs,Dracular (Blood Sucker),FamiLEE Gov control.

  • Ak:

    Let your next vote be our voice!

  • jaywalker:

    The government is run as a business with its officials paid according to their ‘performance’. There is a conflict of interest between service to the people and making themselves richer. These officials (ministers) have to make as much money as possible in an essentially monopolistic business so that they would be entitled to a larger bonus and larger increments.
    So their job is to extract as much from the citizens as possible even with policies detrimental to the well-being of the people. THEY DO NOT SERVE THE PEOPLE BUT THEMSELVES.
    The people do not have any say in this as they act in a dictatorial way.

    We must return the government to the people run by people who serve the people and not themselves. Kick them out!

  • sick and tired:

    If UBS credibility cannot be trusted, then I really have to applaud our PAP government for investing so much money in that non credible bank.

    exactly. very sick and tired of these people already.

  • I think halimah means the 20% is the PAP “people” and their affiliated kakis and cronies.

    Xianz…and now to provide some light humor to those who can appreciate it…Lead Frog LSS “I am deaf to everyone!”…

    http://www.youtube.com/watch?v=sqVykS-Jl2M

  • dunbeanidiot:

    “According to the Labor Report released by the Manpower Ministry…”

    So how come PAP MPs can still talk so much nonsense?
    Or is the report from MOM another mistake?

    Can these people make up their minds?
    These MPs not only deaf but blind also, is it?
    Or suffering from split personalities?

    One day swing one side, must be very free with nothing to do, cooking up stories to confuse us.

  • Zelphon:

    My vote goes to any opposition already…

  • Boey Kay Yan a.k.a brother of Baey Yam Keng:

    @Huh??

    I can 1000% assure you, guarantee, stamp and chop that this 8.8% pay hike will definitely go through without fail.

    Be prepared to vote for the opposition in the next GE, subjected that your ward are contested.

  • Friend’s

    Remember animal Farm rule.

    Four legs good two legs bad ..

    When the farm is prosperous.. Rule change

    Four Legs Good two legs better ..

    We worker experience pay reduction … PAPaya pay increase 8.8%

    What say you ? MP = Money must Pay
    PM = Pay the Most
    SM= Some More pay
    MM= Money Money

  • toratoratora:

    What we know is only their official pay as MPs and Ministers. What about their directors’ fees for sitting on more than a dozen of boards?

  • 老工人:

    I THINK THE ABOVE FIGURES HAVE BEEN FABRICATED BY GOVT. THE PERCENTAGE DECREASED SHOULD BE EVEN GREATER.

  • POST PAP SUPPORTER:

    “Be prepared to vote for the opposition in the next GE, subjected that your ward are contested”

    一言驚醒夢中人!
    這是我們五年(應該是五年半)一次的最後機會!

  • BrownLeo:

    Need to get people with better character such as honesty and intergrity, compassion and values. If u have to keep increasing the salary to make sure these people r not going to get corrupted, bad days for Singapore. Just where r we heading?
    As for election don’t be too happy to think u can vote them out. They r also planning with all their experts, how to retain their seats. heheheheehhe

  • toratoratora:

    Honestly, our bread and butter issues don’t affect them.

    Increase in maids’ levies, workers’ levies, utilities levies, ERP, COE, education tuition fees, HDB property tax, conservancy charges,pump prices, TV licenses, car radio licences, hikes in public transport fares, public parkings, GST ===> all these don’t affect them at all!

    We made known to them our problems and hardship……

    Frankly speaking, they don’t give a two damn hoots!

  • Chan:

    My vote 100% goes to opposition

  • fanta:

    Singaporeans are the most generous and forgiving citizens in the world to pay the government world class salary to let them badmouth them and letting in so many foreigners to compete for jobs (govt generating job searching problems for locals).

    They have dealt with the foreign workers, what about the foreigners (FT and foreigners working in Singapore)?

    It is not enough to deal with the foreign workers, we want to be secure that our rice bowls will not taken over by any foreigners.

  • claude tnt:

    This is the best news for Singaporeans fattening the PAP ministers pay by 8.8% will make it easier for the opposition to use it alongside other issues to topple the leaders who seem to out of touch with the ground

  • SingGAHporeMan:

    Money Not Enuff in Spore

    Go to hospital, no place for u. Wait many hours, if not dead already, have to sleep in corridor
    Or, hv to go pte hospital like ST article about family staying in HDB flat have to send papa to pvte hospital as he is in great pain, cannot stand wait any more. Now Big financial burden on family as diagnosed cancer.
    Or, like Malay man in SGH. 4 nurses ask him to leave as cannot find anything wrong. But NO doctor see before discharge.No choice to leave. Check in TTS next day and operated straight away by TTS. SGH no problem, TTS emergency operation???
    Want to die, also no place now in hospice. ST – many die on wait list before chance to die in comfort in hospice
    So Ah Khaw allow us to use medisave to get treatment in Malaysia. Aiyo, must now go overseas to get treatment.

    GST go up to 7%, cannot take out CPF. Why Spore Govt so much money, cannot spend on health care for sinaporeans. Bcos: LEE family wants to invest in childcare centres in Australia (ABC Learning centre -lost over S$400m), UBS, Citibank, Merryl Lynch, Barclays, Shin Corp. and lost many tens of billion. LEE think they so smart and everyone else so stupid dont want to invest. Actually, all smart investors dont invest including Jim Rogers, Buffett. Tony Tan famously ask UBS to have mandatory conversion to UBS chares clause in convertible bond, altho UBS never ask for it. Now convert at big loss.

    GahMent allow massive influx of “foreign Talent” and huge growth in population, but reduce growth in COE from 3% per year to 1% per year. So COE shoot up, small car price also shoot up.

    Housing prices shoot up, due to big influx of foreign talent

    Now common neigbourhood schools also import foreign sports talent. See ST article. So no chance for local kids to play sports for their school anymore. All foreign talent.

    Score all A’s in A level but cannot get in course that they want in U due to 30% foreign talent allocation. Does School in Indonesia, Vietnam, India have to do what our students do – CCA, Second Language, Project Work? Are their standard of A level as high as ours?

    So many students have to go overseas at huge cost bcos they cannot get into good course even with good A level results.

    But our MM say that all of the above is due to our fault, bcos we not tough anymore, cannot stand to have barbs in our skin (sorry huh, maybe that’s why we need foreign talent from India, they are tough to carry Kavadi everyyear).

  • SUN SHINES:

    This is what we call “MAKE HAY WHILE THE SUN SHINES”

    hahahahahahahahaha !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    should anyone have further doubt on the talent they have.

  • ben:

    singaporeans prefer to have so few opposition mp. so, even if they hike their salaries breaking the world record,
    who is there to stop them?

    bills . which ones can be stopped ?

  • JustVoteOppositionLah:

    Come next election, I will just vote for the opposition even if the candidate is an ex-convict. I don’t give a damn anymore as long as he is not representing the pigs.

  • band of brothers:

    Vote any humans in oppositions than PIGs in PAP.

  • claude tnt:

    Hello SingGAHporeMan,

    I had repeatedly said that health care is in dire state and the minister should go at this election and I will volunteer my help to any opposition party that is willingly to challenge him.

    Appreciate if you let me know Where did you get the news about the following:
    “—-like Malay man in SGH. 4 nurses ask him to leave as cannot find anything wrong. But NO doctor see before discharge.No choice to leave. Check in TTS next day and operated straight away by TTS. SGH no problem, TTS emergency operation???—-“

    Thanks

  • LIONS ROAR:

    Any rational and intelligent government would by now has understood that any incrementals in the common workers’ pay would most likely generate a corresponding increase in total expenditure for the economy whilst more money into the pockets of the rich would most probably generate a much smaller incremental in spending and does not help to propel economic growth per se.
    A reasonably good and rational governemnt should then know what or what not to do for the ultimate good of the country.
    If not,what then is GOOD GOVERNMENT?!!!

  • Fei:

    To the PAP, good government is one that can reduce the population to timid sheep and able to fleece them for wealth and power year after year. That is exactly what they are doing right now and keep increasing their own obscene wages whilst the poor have their wages kept depressed.

  • mon:

    the fact is as the article rightfully pointed out:

    the pigs don’t care about the people.

    they only serve themselves.

  • Blank Check:

    Because of Apathy, the best bet is still to wait for the upcar.
    And then it will be dominoes.
    Imagine superstar finally retired.
    Who will be the next sg idol?

  • dunbeanidiot:

    I believe if Singaporeans are to concentrate more on the political climate rather than “smokescreens”, the opposition will have a better fighting chance.

    Please be aware that issues like FTs, PRs, housing, inept politicians and IRs etc may not affect the livehood immediately or directly but in the end, they will affect all of us.

    Can’t wait until kena than siam, right. Must preempt it and siam already lah. So exercise caution before voting NOW before it’s too late.

  • To SingGAHporeMan,

    Well said.

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