What is Seagate saying?
2000 jobs gone and company relocating to cheaper place. Are we expensive? What is making us expensive? Labour cost, land cost, infrastructure cost, govt cost, and whatever cost, are all going up, which is good. Then we can be in the league of the first world cities, notable for being expensive. But one of these costs can and will surely go down if we are to remain at least competitive to keep some manufacturers here. Or maybe manufacturing is already a gone case and service is what is the next biggest employer. We need to thank the two IRs for the job opportunities available. Hey wait a minute, the problem is still there. What problem? Labour cost still must come down, which means the income of the workers is not going to go up by any measures. Ok, where is the problem? With a stagnating income, who is going to pay for the services and goods with escalating prices? Housing, transportation, medical, food and entertainment will only get more expensive because the demand is there. How come, when our workers are not creating the demand? That is beside the point. Our workers will just have to live with the situation, lower income and higher living cost. But don’t worry, housing, go for smaller units or rentals. Food, go for cheaper substitution, don’t each chicken, eat fish, I mean ikan bilis, not pompret or groupers. Actually the real situation is that life is good. People are all very rich and with big disposable income. Just walk to the big shopping centres in Orchard Rd and you will know what I mean. And the long queues of people in private property launches will tell a happy story. What is real and what is make belief? I think the buying frenzies in Orchard Rd and property launches are real.