2/08/2013

White Paper – Don’t listen to snake oil salesmen




The debate on the 6.9m population is getting heated up in Parliament. The position of the PAP is that without the more than 1m foreigners coming into the workforce, the city will sink and Sinkies will really be sinking. Our reputation will be impaired, MNCs threatening to pull out, hundreds of thousands of jobs lost, standard of living will go down, and they forgot to add that our women folks will all become maids in foreign countries. What else is new? Crying wolf to little children?

97% of Sinkies have said no to this outrageous scheme of turning our country into a foreigners hub. Are the 97% population so stupid and the handful of snake oil salesmen genius, the white knights that are here to save the people and country? I have written a piece about the restructuring of our economy in the early days when many of these wise men were still playing golies or flying kites. Didn’t they know that we have gone through a very critical phase of skills upgrading to high value added jobs to raise the income of our workers? When has this country turned into another cheap labour joint?

Restructuring the economy…if you can remember

Many seniors would remember how Jurong Industrial Town started. It was primary industries, some heavy industries and many were labour intensive industries. When we started to industrialise, labour intensive industries were the only thing available even if the pay was low. There were plentiful of not well educated workers available and needed jobs. We were competing for investments by being cheap and good.

This went on for a decade or two before China opened up. Our immediate neighbours too were encouraging low cost industries to locate there. The writing was on the wall. We could not compete based on cheap labour. Productivity was the key to lift the economy and industries to the next level. The Govt consciously allowed, or no choice, when many labour intensive garment and electronics companies uprooted to cheaper sources of labour. We have the National Productivity Board, famously known as NPB, to boost productivity.

The Govt went on to attract high value added industries here. We promote ourselves as a hub for knowledge based industries. Highly educated and high quality workers and higher pay. We have to compete at a different level to survive. No more cheap labour!

Some years ago the NPB’s name was changed to Spring. I am wondering what the hell that word meant. It cannot be an Arab Spring or Singapore Spring. But what was clear, Productivity is no longer the key word. And the productivity of the industries and economies actually got buried and forgotten. Productivity has gone to sleep. Whatever GDP growth there was is now directly related to the number of workers, skilled, unskilled and low skilled, that are brought into the country. There is nothing to do with productivity but low cost.

Since when have we become a low cost production centre and cheap labour joint and trying to compete with our neighbours and giants like China, India and Indonesia, and even Malaysia? And why are there so many low cost industries here today and now trying to blackmail the Govt not to restrict the inflow of cheap labour? Why is the Govt not doing the same as in the early 80s, to shift out the labour intensive and cheap labour industries? Or how did so many of these industries creep into this knowledge based economy in the first place?

Would the Govt got weak knees and beg the MNCs to stay put? Please don’t go, we will obey and let you have whatever you want. We will import more cheap labour?

What is happening?

19 comments:

  1. rb blog always hit the spot.

    I have one Singaporean friend who works in Tuas in a shoe factory churning out cheap shoes, would you believe it? Low cost factories have actually relocated back here due to the low cost labour ! He is sinkie, earning on a measly hourly rate of $8 an hour and having to compete with foreigners! Another local friend works as a intern in a hp factory in Woodlands assembling parts like you see in Shenchen!

    ReplyDelete
  2. As far as manufacturing goes, Singapore has no choice but to remain competitive, to produce its "high value" stuff. But now "high value' stuff is made in emerging places like China and Vietnam for alot less in labour costs.

    This leaves Singapore with very choice but to allow entrepreneurs to do their thing. Land being expensive means manufacturing struggles more -- so service/ knowledge sectors evolve and develop "high value" stuff -- for e.g. financial services, legal services and of course management.

    I think the snake oil is being sold by those folks who still think they can remain uncompetitive in the face of open competition. Motherfuckers in cuntrees like India and the Philippines are getting educated, obtaining specialised skills and advanced degrees. They too can do, for a lot less and with BETTER ATTITUDE what the resting-on-laurels, world-owes-me-a-living, entitlement-mentality Singaporean can.

    The market pays you what you are worth. If you want to earn more, then you have to come to market with abilities, attitudes and skill sets which give you the edge to be able to charge more for your labour-services.

    Fat-assed lazy union-junkie mat sallehs have been complaining for decades about the fact that their industries have closed down and their manufacturers have moved to China. Can you sell an Apple Mac made in the USA for the same low price as one made in China? NO WAY LAH.

    You like cheap electronics and cheap mobile phones? Then you have to appreciate the low cost manufacturing in places like China, and the low cost 24/7 support from call centers in India and the Philippines.

    If you earn a "measly" $8 an hour, at least be grateful you still have a job lah!

    The Singapore government is not "restructuring" the economy per se. It is OPENING UP more one of the most smoking free, laissez faire economies in existence -- so that entrepreneurs can come in and make the place rock in even more awesome ways.

    However, lately MoM has CUT the number of work permits and made some enterprises uncompetitive. I know of a few high-end restaurants which have had to close their business because they can no longer compete because they cannot get lower-cost foreign staff.

    Got comparative advantage, or are you buying the snake oil from the naysayers who are hell bent on holding the progress of the cuntree back?

    ReplyDelete
    Replies
    1. Matilah is damn right.
      Where does Sg stands in the competition? No where. You want to keep your business going, there must be consummer and the more consummers the better.
      When businesses are good, service sector provides more jobs and service standard improves.

      When everyone does well, they will spend and the economy gets better. The people will get to buy their dream home, car and other luxuries and brsnded goods. They can spend longer time at their favourite holiday destination and visit more countries.

      Can Sinkies see the advantages?

      Delete
  3. /// Since when have we become a low cost production centre and cheap labour joint and trying to compete with our neighbours and giants like China, India and Indonesia, and even Malaysia? ///

    This happened when the Traitors were no longer able to attract talented people to join them.

    Look at their GE 2011 candidates.
    Do you not think they are scraping the bottom of the barrel?
    Punggol East.
    How many years has their candidate been a member of PAP?




    ReplyDelete
  4. @anon 944:

    >> the Traitors were no longer able to attract talented people to join them.

    A good sign no doubt. The "talented people" are in private enterprise creating wealth for the cuntree, and of course themselves.

    The market rewards talent. No need to join the government. In fact, I love a government with untalented bums, because the real talent is busy making the private sector ROCK. When the private sector rocks, so does the rest of the cuntree.

    ReplyDelete
  5. $8 was too high. I think it was $5.5. (more in line with redbean's article). But he drove a Volvo SUV and lived in a condo. The intern was actually doing the design for the latest Korean hp and paid $3000a month just to be intern.

    ReplyDelete
  6. OK. I agree. Sometimes my manner comes across like I am some kind of uncaring arsehole.

    The fact of the matter is this: if you are paid more than you are worth, to the guy doing business, this situation is unsustainable. Very soon he will be digging his own pockets to stay afloat, and one day he will simply stop because the moey going out exceeds the money coming in.

    It is very tragic to lose a job. However most of us have experienced that, and many of us have even experienced the more terok one of losing a sizeable chunk of one's net worth in business failure.

    But it isn't the end of the world. Thee is nothing wrong with starting from the bottom again, and working your way back up. Same as the businessman/ woman who has to start from ground zero after suffering devastating loses -- many times unavoidable losses.

    Life is full of shit. In fact, "big wins" are rare and valuable because to get them you have to push through all the shit...which for many can be over whelming.

    What I find annoying is the lack of good attitude, a real fighting spirit, brave heart one needs to handle shitty situations. You can't just get angry and demand that the govt do something, or demand "justice" as if the world has hantamed you...no lah.

    Show some character, some courage -- grow some balls lah for fuck's sake -- at least be a good example lah to the children in your family, because they will need to face challenges too.

    You could also develop your "soft" skills like communication, public speaking, presentation and sales skills. And learn how to network, and ENGAGE your networks constantly.

    If you stay gloomy, angry, irrational and comfortable in the no-responsibility-required victimhood, that's your choice. But you're likely to go backwards, feel worse until you reach the poit you cannot "feel" anything any more -- then you are in REALLY BIG BAD TROUBLE, and in danger of losing your health and sanity.

    Good luck!

    ReplyDelete
  7. STForum

    [Social integration is everyone's responsibility]

    "THE Govt has spelt out the population issues rather clearly in the White Paper.

    Our survival, growth and future depend on how we work together and alongside others who are from different nations and cultures.

    Tan Ngoh Tiong (Dr)
    President, ConneXions International

    Vicky Tan (Dr)
    Executive Director, ConneXions International, Singapore

    FORUM NOTE:
    ConneXions International is a non-profit organisation
    that seeks to develop friendship
    and assist international students and new residents in practical ways."

    http://www.straitstimes.com/premium/forum-letters/story/social-integration-everyones-responsibility-20130209

    ReplyDelete
  8. TODAYonline

    [Saying ‘no’ to foreign workers could affect health sector]

    "... will have a major impact on the health, eldercare and disability sectors, where workers are almost exclusively from overseas, Acting Minister for Social and Family Development Chan Chun Sing said in Parliament yesterday."

    http://www.todayonline.com/singapore/saying-no-foreign-workers-could-affect-health-sector

    ReplyDelete
  9. STFORUM Online

    [We cannot do without foreign labour]

    "I READ with much concern the proposal by the Workers' Party to stop the inflow of more foreign workers ("Lively debate on benefits and dangers of WP plan"; Wednesday).

    If the WP's recommendations are taken up, we will surely have to face the consequences in the long run.

    Ishwar Mahtani"

    http://www.straitstimes.com/premium/forum-letters/story/we-cannot-do-without-foreign-labour-20130209

    ReplyDelete
  10. Seah Chiang Nee's Saturday column

    [Big debate on S’pore’s future]

    "Since I began working as a foreign correspondent in 1960, I have had experience with two national leaders in Southeast Asia proclaiming a similar ambition for larger populations."

    http://thestar.com.my/news/story.asp?file=/2013/2/9/focus/12688653&sec

    ReplyDelete
  11. The Sinkies are showing balls by protesting. KPKB is also a form of fighting back for their interests.

    In 2030 or later, don't your grandchildren start to ask you, 'Granny, you were there, why didn't you stop it then? Why did you do?'

    ReplyDelete
  12. redbean:

    >> 'Granny, you were there, why didn't you stop it then? Why did you do?'

    Could go the other way too: "Granny, thank goodness you made the right decision and now my Singapore is rocking awesome!"

    >> The Sinkies are showing balls by protesting.

    Won't achieve anything, but it is good to use freedom of speech and expression. Please continue to scream your guts out.


    >> KPKB is also a form of fighting back for their interests.

    No, sadly, it is not. We live in a PHYSICAL universe where ACTION is required to move physical resources around (including influencing the action of other actors) so that OBJECTIVES can be attained.

    If you don't take action in the real world, i.e. in the real PHYSICAL world, nothing will change.

    ReplyDelete
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  18. Cheap labour is a way of Singaporean bosses not having to think or become efficient and increase productivity . This is reflected in government policy and can be seen all over Singapore .
    Go around the world and see how many workers it takes to do various jobs quickly and efficiently , then come back to Singapore . The results are there for anyone to see , inefficiency is obvious in Singapore , and is at all levels , from government services to the smallest company .

    ReplyDelete