12/13/2006

myth 101

'The fallacy that we must compete for lowest wage or cost' A report in the Today paper showed the medical cost of some operations in the US, India, Thailand and Singapore. The US is undeniably the most expensive and India the cheapest. We are about 20-30% more expensive than Bangkok. What the comparison tells is that there is a market at every level. It is like our own job market. Not all sectors have to compete for lowest wage. In some sectors we are the most expensive in the world. Similarly, when we are competing for foreign talents, in some areas we have to literally pay through our nose. But in some areas, we pay them below market or less than if we were to employ our own citizens. It is actually a whole range of jobs and expectations. What I am trying to say is that we should price what we think we is comfortable and attract those that find our price acceptable. We can't make a price to fit the whole market range. And the new policy on citizen first may drive some foreign talents away but will attract some new foreign talents. Those who are affected and are moving are not the really indispensable talents that we cannot afford to lose. Thus there is no need to bend backwards to accommodate those who want to leave. There is no point in trying to keep those who are not happy here. It is more important for the govt to make the citizens, the stakeholders, happier. And a 10% difference in subsidies is not going to do that much.

4 comments:

Anonymous said...

Redbean,
ironically, the gov say that we should compete by wage cost and productivity. How about the gov themselves ? They are just as overcost and extremely uncompetitive by their own standard place upon us.

Talented ??? In what ?? Talented in BS, I agree.

redbean said...

i think everyone knows that there is such things called segmentation and differentiation, or market niche.

the thing is that when it comes to a matter of decision, the one who decides is always right. if i decide on a course of actions i can give you 101 reasons why that course of action is right. if i decide to take another course of action, i can give you 101 reasons why the former is wrong.

Anonymous said...

"There is no point in trying to keep those who are not happy here" - there is also no point keeping singaporeans who are not happy here... so why not you get shipped out? :-)

redbean said...

hi anonymous,

do you understand the meaning of 'pah si buay chow?' this is a privilege of being a citizen.