Singapore is what it is today not
just because of cheap labour. There are many factors that make Singapore a very attractive and
business friendly country. Thanks to the Govt, we have a very pro business
climate, good infrastructure, good govt rules and regulations, ease of doing
business with negligible corruption, transparency, good labour, govt and
business relations and a highly educated workforce. English is the common
language for govt, business and social activities. The legal system is based on
the British model that many developed countries are familiar with. There is
hardly any restriction on the transfer of money, ease of transport and
communication system, good international connectivity and a very safe and clean
and liveable environment. It is so easy to just move in and live in this city.
The tax rate is about the lowest in the world.
With
so many advantages, even the high cost of living is not too much an issue. We
have full employment. There is really no need to create more employment unless
the Govt is thinking of increasing the population/workforce which means more
jobs are needed. If the population is more or less capped at the present level,
even with some leaving, the employment situation is unlikely to be seriously
affected. Any company that leaves will likely to be replaced quickly by more
productive and higher value added companies.
The
Govt could use this opportunity to restructure the economy, allow the less
productive and labour intensive companies to leave. Those that need cheap
labour and could not live without them can also leave. Those companies that
think they could operate in this city will still come. With our highly educated
workforce, the high value added companies would not have problem fitting in to
benefit from all the first class facilities and advantages this country is
providing. The country should keep upgrading, keep the population at the
current level without straining on the infrastructure and resources, and
raising the income level of the workforce at the same time.
There
is no need to keep relying on cheap labour industries that are not paying well.
That is an area that the country has moved away from and should not return to. The
jobs and pay they are creating are worthless numbers that we can do without. Whatever
residual companies, let them be, and if they are not competitive, let them move
to neigbouring countries to tap on their cheaper workforce and infrastructure
if they find it difficult to get cheap labour.
We
need to attract good quality companies with high paying jobs for our graduates
from the universities and tertiary institutions. Otherwise these graduates will
be competing for lower and cheaper jobs with cheaper PMETs with lower quality
papers and qualifications. We have world class universities churning out
quality graduates not to be cheap labour.
By
keeping the population at this level, many of the land and facilities can be
improved without straining them and without incurring huge infrastructure
development cost. The large reclamation of land and housing may not be
necessary or less will be needed. This is also in a way a chicken and egg
situation, one feeding on the other.
Singapore is a very attractive
place to live and do business without being cheap. We don’t have to sell this
country as cheap and good. We are good and very good. Many rich and famous
would want to be here and live here. Let’s throw away the mantra of CBF. Lets
be expensive and good and high paying. We are already expensive in many ways
and the businesses are still coming. We can be selective, not grabbing the
cheap and less productive ones. Does this argument make sense?
What
do you think?