SINGPAORE: Middle class wages have been stagnant in the past 5 years, according to economists, and this could lead to social instability.
These concerns were shared at the annual Institute of Policy Studies Singapore Perspectives conference.
Economists believe a US economy slowdown in business and consumer spending may cause problems for Singapore, but as Singapore is tops in the ASEAN resilience index, it should be able to weather external shocks, thanks to a diversified economy and strong Asian demand.
They predict that growth going forward will be 3 to 5 percent.
The long-term growth limits for a mature economy was previously in the 3 to 5 percent range.
However, economists are asking who this growth is for. The income of the bottom 30 percent of the population has fallen. What is more worrying is the fact that the majority of Singaporeans in the middle class has only seen about a 1 percent increase in nominal income in the last 5 years.
It is not just Singapore - economists say stagnant wages is a global problem, and the chief reason for this is globalisation.
India and China are introducing a large pool of skilled and unskilled labour to compete with the labour forces of industrialised countries.
Singapore is susceptible to this because of its open economy.
123,000 jobs were created last year and economists estimate some 70 percent of these jobs went to foreigners.
"With the rate of immigration, even among unskilled and semi skilled labour at a rate twice of what we experienced in the 90s, at a rate fastest in the developed world, the question is - does this dampen our real wages as we grow? Does the strategy itself dampen real wages and depress real wages at the low and middle end of the spectrums? They are sacred cows but we should step back and think about them," said Yeoh Lam Keong, Vice President, Economic Society of Singapore.
Another reason cited for middle class wage stagnation is the move by the government to cut CPF employer contribution rates for older workers by 4 percentage points over the last 2 years.
"So if you were a worker in the 50-55 age group, you could have seen your wages fall as much as 10 percent over the last 3 or 4 years. Now with the economy improving, the government could bring that back, the increase is 1 or 2 percent. I'm in support of CPF tinkering but probably it happens far too often, but I think there's probably some justification to look back and think that the restructuring was a bit too aggressive on the CPF side and it has contributed somewhat to a very sandwiched middle class," said Chua Hak Bin, Director, Asia Pacific Econ & Market Analysis, Citigroup Global Markets Singapore.
The government is looking at increasing CPF by 1 to 2 percentage points in 2007.
Economists say workfare should become a more permanent pillar of the economy so as to cushion growing inequality.
Adding that long term middle class wage stagnation could lead to social instability. - CNA /dt
Regards,
Edmund Ng,
CEO, President
www.Internet-Empire.com
Thursday, January 11, 2007
123,000 jobs were created last year and economists estimate some 70 percent of these jobs went to foreigners.
SINGPAORE: Middle class wages have been stagnant in the past 5 years, according to economists, and this could lead to social instability.
These concerns were shared at the annual Institute of Policy Studies Singapore Perspectives conference.
Economists believe a US economy slowdown in business and consumer spending may cause problems for Singapore, but as Singapore is tops in the ASEAN resilience index, it should be able to weather external shocks, thanks to a diversified economy and strong Asian demand.
They predict that growth going forward will be 3 to 5 percent.
The long-term growth limits for a mature economy was previously in the 3 to 5 percent range.
However, economists are asking who this growth is for. The income of the bottom 30 percent of the population has fallen. What is more worrying is the fact that the majority of Singaporeans in the middle class has only seen about a 1 percent increase in nominal income in the last 5 years.
It is not just Singapore - economists say stagnant wages is a global problem, and the chief reason for this is globalisation.
India and China are introducing a large pool of skilled and unskilled labour to compete with the labour forces of industrialised countries.
Singapore is susceptible to this because of its open economy.
123,000 jobs were created last year and economists estimate some 70 percent of these jobs went to foreigners.
"With the rate of immigration, even among unskilled and semi skilled labour at a rate twice of what we experienced in the 90s, at a rate fastest in the developed world, the question is - does this dampen our real wages as we grow? Does the strategy itself dampen real wages and depress real wages at the low and middle end of the spectrums? They are sacred cows but we should step back and think about them," said Yeoh Lam Keong, Vice President, Economic Society of Singapore.
Another reason cited for middle class wage stagnation is the move by the government to cut CPF employer contribution rates for older workers by 4 percentage points over the last 2 years.
"So if you were a worker in the 50-55 age group, you could have seen your wages fall as much as 10 percent over the last 3 or 4 years. Now with the economy improving, the government could bring that back, the increase is 1 or 2 percent. I'm in support of CPF tinkering but probably it happens far too often, but I think there's probably some justification to look back and think that the restructuring was a bit too aggressive on the CPF side and it has contributed somewhat to a very sandwiched middle class," said Chua Hak Bin, Director, Asia Pacific Econ & Market Analysis, Citigroup Global Markets Singapore.
The government is looking at increasing CPF by 1 to 2 percentage points in 2007.
Economists say workfare should become a more permanent pillar of the economy so as to cushion growing inequality.
Adding that long term middle class wage stagnation could lead to social instability. - CNA /dt
Regards,
Edmund Ng,
CEO, President
www.Internet-Empire.com
These concerns were shared at the annual Institute of Policy Studies Singapore Perspectives conference.
Economists believe a US economy slowdown in business and consumer spending may cause problems for Singapore, but as Singapore is tops in the ASEAN resilience index, it should be able to weather external shocks, thanks to a diversified economy and strong Asian demand.
They predict that growth going forward will be 3 to 5 percent.
The long-term growth limits for a mature economy was previously in the 3 to 5 percent range.
However, economists are asking who this growth is for. The income of the bottom 30 percent of the population has fallen. What is more worrying is the fact that the majority of Singaporeans in the middle class has only seen about a 1 percent increase in nominal income in the last 5 years.
It is not just Singapore - economists say stagnant wages is a global problem, and the chief reason for this is globalisation.
India and China are introducing a large pool of skilled and unskilled labour to compete with the labour forces of industrialised countries.
Singapore is susceptible to this because of its open economy.
123,000 jobs were created last year and economists estimate some 70 percent of these jobs went to foreigners.
"With the rate of immigration, even among unskilled and semi skilled labour at a rate twice of what we experienced in the 90s, at a rate fastest in the developed world, the question is - does this dampen our real wages as we grow? Does the strategy itself dampen real wages and depress real wages at the low and middle end of the spectrums? They are sacred cows but we should step back and think about them," said Yeoh Lam Keong, Vice President, Economic Society of Singapore.
Another reason cited for middle class wage stagnation is the move by the government to cut CPF employer contribution rates for older workers by 4 percentage points over the last 2 years.
"So if you were a worker in the 50-55 age group, you could have seen your wages fall as much as 10 percent over the last 3 or 4 years. Now with the economy improving, the government could bring that back, the increase is 1 or 2 percent. I'm in support of CPF tinkering but probably it happens far too often, but I think there's probably some justification to look back and think that the restructuring was a bit too aggressive on the CPF side and it has contributed somewhat to a very sandwiched middle class," said Chua Hak Bin, Director, Asia Pacific Econ & Market Analysis, Citigroup Global Markets Singapore.
The government is looking at increasing CPF by 1 to 2 percentage points in 2007.
Economists say workfare should become a more permanent pillar of the economy so as to cushion growing inequality.
Adding that long term middle class wage stagnation could lead to social instability. - CNA /dt
Regards,
Edmund Ng,
CEO, President
www.Internet-Empire.com
NKF deserves continued support: Ho Ching
Writing in her personal capacity, Ms Ho Ching, the CEO of Temasek Holdings, has asked for continued support for the National Kidney Foundation (NKF) which has come in for heavy criticism recently.
She wrote:
I write in my personal capacity.
I have been a long-time admirer of the National Kidney Foundation (NKF).
The NKF has been outstanding in supporting kidney and other patients. They and their supporters have been tireless not just in raising funds. They have played a key role in providing life saving dialysis services for kidney patients and more.
They also counsel and sometimes cajole or even berate patients and their families to take responsibility for themselves and make an effort to live.
Patients and their families, including their children, are encouraged to work together to contribute to their own support, and not give up.
This helps them retain their self-respect and live their lives confidently as full members of society. I cheer the NKF for this enlightened philosophy.
Taking on a dialysis patient is almost like adopting a chronically and critically ill child. You take responsibility not just to give money at the spur of the moment in a flash of sympathy, or to organise dialysis sessions for the week in a spurt of enthusiasm.
You know that it is a serious life-long commitment of support. You know that any interruption of that support means fear, a loss of hope, and a death sentence of sorts. Many long-time Giro donors understand this.
The NKF has wisely built up strong reserves over the years. It is a sensible and responsible approach. The NKF's fears are understandable. No one likes to have the dreadful responsibility of deciding which patients should live when money dries up in an economic downturn.
What if 10 per cent or 20 per cent of their patients or their patients' breadwinners lose their jobs in an extended downturn? Surely, you hope to continue dialysis for them even if they cannot co-pay their part?
I would like to recommend that the NKF consider building and managing its reserves as an endowment. It also needs a sufficient buffer to weather a deep recession.
Perhaps this was what it had been trying to do. Perhaps the prolonged years of difficulties during the Asian financial crisis of the late 1990s and the earlier brink of the 1985 recession have spurred the frenetic pace of fund raising in recent years.
But this funding model needs to be properly modelled, analysed and communicated.
When the NKF completes its review and puts together its plans, do share them. I am sure Singaporeans and many others share a chord of sympathy for your cause.
On the issue of CEO pay, I believe that even charities ought to be managed professionally. How else can we extend high quality and impactful services including specialist educational and therapy support to those in need? After all, we do not expect CEOs of publicly-funded hospitals to be poorly paid, do we?
Indeed, the NKF is more like a community hospital with multiple centres for high-quality, life-long critical care. It operates and manages dialysis centres to provide vital life-saving services at the highest safety levels. It does this with a heart, looking after the emotional and psychological well--being of its patients, too. Taken as a whole, the NKF has certainly done very well for its patients.
True, there will be volunteers, much admired and respected, with independent means who could help charities without having to take a single cent in salary.
There are also others - much loved and lauded - who for religious reasons or perhaps in memory of a parent, child or friend, would give selfless service to others. Society owes them all a debt of gratitude and applauds their spirit of charity.
But we should not then believe that all those involved in charitable causes should in turn be charitable cases themselves.
Skilled specialists and experienced managers would soon turn to other careers and job opportunities if they cannot earn a living commensurate with their skills and ability. And we would all be the poorer for it as services drop in quality or wither away.
Sometimes, in a life-threatening illness, all the money in the world will not be able to bring a loved one back.
Mr Durai has helped make a difference in the NKF where medical science has offered a lifeline, though at a cost of tireless fund raising for life time dialysis support. I would not begrudge Mr Durai a proper and well-earned compensation and bonus. He probably earned less than what he would have earned if he had continued in his profession as a lawyer.
Yes, some of the things that Mr Durai has allegedly done rather raise a questioning eyebrow or two. Some may have crossed the line of proper conduct in respect of conflicts of interest as well. If so, they should be corrected.
It is also important to put in place a set of practical governance guidelines to minimise conflicts of interest, especially for an institution of public trust.
While the leadership of a CEO is critical to shape and drive any organisation, it is equally important that the board balances its support and guidance for its CEO, with its fiduciary duty. It has to serve as an impartial guardian of stakeholder interest in a public institution.
As a civilised society, we should not lightly condemn anyone in the court of public opinion without the benefit of due process and the right to a fair hearing. Even murderers have that right.
If there has been corruption or misuse of funds, then let the relevant authorities investigate and take the case through due process for a fair and proper judgment. There may have been errors of judgment. Most of us can accept and forgive this.
On the other hand, we should resolutely guard against those with serious faults of character and not put them into positions of trust. But let's be fair and keep an open mind, and give the benefit of doubt until the full facts are known.
These deliberations and decisions have important long-term considerations and impact. They should be taken calmly and steadily, away from the acid of hate and anger of betrayal.
Understandably, many feel betrayed. They feel they have been deceived into making donations of hard-earned money. However, this is no excuse for vandalising the NKF facilities, or heaping abuse on NKF staff. Two wrongs won't make a right.
Let us not forget there are real patients who continue to need dialysis support. I urge the staff of NKF to continue to support them well, and not let this wave of fury shake them from their mission and professionalism to serve their patients well.
I am sure it would be a tremendous comfort to both the patients and their caregivers if the rest of us can keep calm and give them our moral support.
Finally, whatever the transgressions or shortcomings, I want to put on record my deep gratitude for Mr Durai and the NKF and their supporters, including numerous donors, media artistes and volunteers as well as board members and patron.
Together, they have been tireless in their efforts and contributions all these years to make a difference in the lives of many kidney patients in need.
I do hope that every one of us, including Mr Durai and the NKF, will emerge the stronger, wiser and better from this serious and unfortunate setback.
I am also grateful to all the volunteers and professionals working in the various other voluntary welfare organisations. They too have given tireless and dedicated service of time, effort, money, love and emotions, to the young and old, to those sickly and in need, in their respective worthy causes.
Whatever their faults and foibles, the volunteers, staff and professionals in our VWOs have collectively given hope to many amongst us, and made this island a better place.
In turn, I hope Singaporeans and my fellow men will join me too in supporting them, and show them our generosity and warmth of the human spirit.
Many drops an ocean make, and many hands will lighten the load. On my part, I will continue to donate to the NKF and other favourite charities.
Ho Ching, the executive director of Temasek Holdings, sent this letter in her private capacity. - TODAY /dt
http://www.channelnewsasia.com/stories/singaporelocalnews/view/158427/1/.html
Regards,
Edmund Ng,
CEO, President
www.Internet-Empire.com
She wrote:
I write in my personal capacity.
I have been a long-time admirer of the National Kidney Foundation (NKF).
The NKF has been outstanding in supporting kidney and other patients. They and their supporters have been tireless not just in raising funds. They have played a key role in providing life saving dialysis services for kidney patients and more.
They also counsel and sometimes cajole or even berate patients and their families to take responsibility for themselves and make an effort to live.
Patients and their families, including their children, are encouraged to work together to contribute to their own support, and not give up.
This helps them retain their self-respect and live their lives confidently as full members of society. I cheer the NKF for this enlightened philosophy.
Taking on a dialysis patient is almost like adopting a chronically and critically ill child. You take responsibility not just to give money at the spur of the moment in a flash of sympathy, or to organise dialysis sessions for the week in a spurt of enthusiasm.
You know that it is a serious life-long commitment of support. You know that any interruption of that support means fear, a loss of hope, and a death sentence of sorts. Many long-time Giro donors understand this.
The NKF has wisely built up strong reserves over the years. It is a sensible and responsible approach. The NKF's fears are understandable. No one likes to have the dreadful responsibility of deciding which patients should live when money dries up in an economic downturn.
What if 10 per cent or 20 per cent of their patients or their patients' breadwinners lose their jobs in an extended downturn? Surely, you hope to continue dialysis for them even if they cannot co-pay their part?
I would like to recommend that the NKF consider building and managing its reserves as an endowment. It also needs a sufficient buffer to weather a deep recession.
Perhaps this was what it had been trying to do. Perhaps the prolonged years of difficulties during the Asian financial crisis of the late 1990s and the earlier brink of the 1985 recession have spurred the frenetic pace of fund raising in recent years.
But this funding model needs to be properly modelled, analysed and communicated.
When the NKF completes its review and puts together its plans, do share them. I am sure Singaporeans and many others share a chord of sympathy for your cause.
On the issue of CEO pay, I believe that even charities ought to be managed professionally. How else can we extend high quality and impactful services including specialist educational and therapy support to those in need? After all, we do not expect CEOs of publicly-funded hospitals to be poorly paid, do we?
Indeed, the NKF is more like a community hospital with multiple centres for high-quality, life-long critical care. It operates and manages dialysis centres to provide vital life-saving services at the highest safety levels. It does this with a heart, looking after the emotional and psychological well--being of its patients, too. Taken as a whole, the NKF has certainly done very well for its patients.
True, there will be volunteers, much admired and respected, with independent means who could help charities without having to take a single cent in salary.
There are also others - much loved and lauded - who for religious reasons or perhaps in memory of a parent, child or friend, would give selfless service to others. Society owes them all a debt of gratitude and applauds their spirit of charity.
But we should not then believe that all those involved in charitable causes should in turn be charitable cases themselves.
Skilled specialists and experienced managers would soon turn to other careers and job opportunities if they cannot earn a living commensurate with their skills and ability. And we would all be the poorer for it as services drop in quality or wither away.
Sometimes, in a life-threatening illness, all the money in the world will not be able to bring a loved one back.
Mr Durai has helped make a difference in the NKF where medical science has offered a lifeline, though at a cost of tireless fund raising for life time dialysis support. I would not begrudge Mr Durai a proper and well-earned compensation and bonus. He probably earned less than what he would have earned if he had continued in his profession as a lawyer.
Yes, some of the things that Mr Durai has allegedly done rather raise a questioning eyebrow or two. Some may have crossed the line of proper conduct in respect of conflicts of interest as well. If so, they should be corrected.
It is also important to put in place a set of practical governance guidelines to minimise conflicts of interest, especially for an institution of public trust.
While the leadership of a CEO is critical to shape and drive any organisation, it is equally important that the board balances its support and guidance for its CEO, with its fiduciary duty. It has to serve as an impartial guardian of stakeholder interest in a public institution.
As a civilised society, we should not lightly condemn anyone in the court of public opinion without the benefit of due process and the right to a fair hearing. Even murderers have that right.
If there has been corruption or misuse of funds, then let the relevant authorities investigate and take the case through due process for a fair and proper judgment. There may have been errors of judgment. Most of us can accept and forgive this.
On the other hand, we should resolutely guard against those with serious faults of character and not put them into positions of trust. But let's be fair and keep an open mind, and give the benefit of doubt until the full facts are known.
These deliberations and decisions have important long-term considerations and impact. They should be taken calmly and steadily, away from the acid of hate and anger of betrayal.
Understandably, many feel betrayed. They feel they have been deceived into making donations of hard-earned money. However, this is no excuse for vandalising the NKF facilities, or heaping abuse on NKF staff. Two wrongs won't make a right.
Let us not forget there are real patients who continue to need dialysis support. I urge the staff of NKF to continue to support them well, and not let this wave of fury shake them from their mission and professionalism to serve their patients well.
I am sure it would be a tremendous comfort to both the patients and their caregivers if the rest of us can keep calm and give them our moral support.
Finally, whatever the transgressions or shortcomings, I want to put on record my deep gratitude for Mr Durai and the NKF and their supporters, including numerous donors, media artistes and volunteers as well as board members and patron.
Together, they have been tireless in their efforts and contributions all these years to make a difference in the lives of many kidney patients in need.
I do hope that every one of us, including Mr Durai and the NKF, will emerge the stronger, wiser and better from this serious and unfortunate setback.
I am also grateful to all the volunteers and professionals working in the various other voluntary welfare organisations. They too have given tireless and dedicated service of time, effort, money, love and emotions, to the young and old, to those sickly and in need, in their respective worthy causes.
Whatever their faults and foibles, the volunteers, staff and professionals in our VWOs have collectively given hope to many amongst us, and made this island a better place.
In turn, I hope Singaporeans and my fellow men will join me too in supporting them, and show them our generosity and warmth of the human spirit.
Many drops an ocean make, and many hands will lighten the load. On my part, I will continue to donate to the NKF and other favourite charities.
Ho Ching, the executive director of Temasek Holdings, sent this letter in her private capacity. - TODAY /dt
http://www.channelnewsasia.com/stories/singaporelocalnews/view/158427/1/.html
Regards,
Edmund Ng,
CEO, President
www.Internet-Empire.com
Tuesday, January 09, 2007
Internet Marketing Seminar Video
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Regards,
Edmund Ng,
CEO, President
www.Internet-Empire.com
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