Citizens are at the core of all policies, he says
By Leslie Koh, The Straits Times, 2 May 2012
PRIME Minister Lee Hsien Loong promised Singaporeans yesterday that they would always take top priority in employment policies.
Whether it was adjusting the supply of foreign workers or the pursuit of economic growth, he said the Government seeks to maximise the advantages for its citizens, and to provide them with jobs and a share of the nation's success.
'Let me be quite clear. Singaporeans will always be our priority. This is the purpose of all our policies,' he told some 1,600 unionists, employers and government officials gathered at Downtown East for the annual May Day rally.
By Leslie Koh, The Straits Times, 2 May 2012
PRIME Minister Lee Hsien Loong promised Singaporeans yesterday that they would always take top priority in employment policies.
Whether it was adjusting the supply of foreign workers or the pursuit of economic growth, he said the Government seeks to maximise the advantages for its citizens, and to provide them with jobs and a share of the nation's success.
'Let me be quite clear. Singaporeans will always be our priority. This is the purpose of all our policies,' he told some 1,600 unionists, employers and government officials gathered at Downtown East for the annual May Day rally.
He acknowledged, however, that there are serious challenges ahead, particularly in lifting the earnings of lower-wage workers here.
'They are feeling that those very low wages are stuck, no matter how hard they try to upgrade,' he said.
He added that union leaders have told him of several other worries facing members, such as the impact of inflation on the cost of living, the adequacy of Central Provident Fund savings, and an ageing workforce that finds it hard to retrain.
PM Lee pledged to take care of lower- wage workers, by monitoring inflation to see if more needed to be done, and rolling out programmes to help them raise productivity and wages. 'Our ultimate aim is to improve lives for all... especially the average Singaporeans and those with lower incomes,' he said.
But he also took pains to stress that wages cannot be pushed up indefinitely without accompanying productivity gains, and explained why he disagreed with a bold proposal for wage rises by economist Lim Chong Yah.
PM Lee pledged to take care of lower- wage workers, by monitoring inflation to see if more needed to be done, and rolling out programmes to help them raise productivity and wages. 'Our ultimate aim is to improve lives for all... especially the average Singaporeans and those with lower incomes,' he said.
But he also took pains to stress that wages cannot be pushed up indefinitely without accompanying productivity gains, and explained why he disagreed with a bold proposal for wage rises by economist Lim Chong Yah.
His speech reflects the stance the Government has maintained on the concerns over wages and foreign workers that have dominated debate in the employment scene in recent months. Leaders have stressed the need for productivity gains to drive wage rises while maintaining that foreign workers are needed for the economy to grow.
Yesterday, PM Lee explained to unionists in detail why the country had to strike the right balance in the supply of foreign workers.
Union leaders and employers, he noted, had reported that companies in every sector could not find enough workers. More than 120,000 jobs were created last year, but only 32,000 Singaporeans joined the labour force.
Firms therefore need foreign workers to start work on business activities that will create new and better jobs for Singaporeans, he said.
At the same time, the inflow of foreign workers has to be slowed to reduce overcrowding, and to encourage companies to develop a 'Singaporean core' of local workers with long-term skills, loyalty and capabilities, PM Lee added.
'The reality is... companies need a mix and we must strike the right balance,' he said. 'We just can't keep on bringing in 80,000 more foreign workers a year.'
PM Lee also made it clear that economic growth was not an end in itself. The Government has been criticised by some for pursuing economic growth at the expense of Singaporeans' welfare.
'Economic growth is... not just for its own sake to have a number to display, but to provide jobs to each one of you, to support your families, to bring up your children,' he said, as unionists nodded.
Yesterday, PM Lee explained to unionists in detail why the country had to strike the right balance in the supply of foreign workers.
Union leaders and employers, he noted, had reported that companies in every sector could not find enough workers. More than 120,000 jobs were created last year, but only 32,000 Singaporeans joined the labour force.
Firms therefore need foreign workers to start work on business activities that will create new and better jobs for Singaporeans, he said.
At the same time, the inflow of foreign workers has to be slowed to reduce overcrowding, and to encourage companies to develop a 'Singaporean core' of local workers with long-term skills, loyalty and capabilities, PM Lee added.
'The reality is... companies need a mix and we must strike the right balance,' he said. 'We just can't keep on bringing in 80,000 more foreign workers a year.'
PM Lee also made it clear that economic growth was not an end in itself. The Government has been criticised by some for pursuing economic growth at the expense of Singaporeans' welfare.
'Economic growth is... not just for its own sake to have a number to display, but to provide jobs to each one of you, to support your families, to bring up your children,' he said, as unionists nodded.
He said the Government would continue to help low-wage workers through a range of programmes, including the $100 million Inclusive Growth Programme which aims to improve the wages of 100,000 workers; GST vouchers of $3.6 billion over five years; and Workfare payouts for 400,000 workers.
Over a lifetime, said PM Lee, low-income households would receive more than $500,000 in government subsidies.
'It is an approach which is working, and over the last five years, real incomes of (low-wage) workers have gone up... by 12 per cent,' he said.
'This is the way we can build an inclusive society, and share the fruits of growth with every Singaporean.'
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