'No need' for minimum wage scheme

'No need' for minimum wage scheme

THE key to breaking the manpower bottleneck is to make the best use of every worker, said labour chief Lim Swee Say yesterday. Mr Lim, who is also Minister in the Prime Minister's Office, said that this could mean giving every worker the best opportunities.

Firms should also make full use of the Government's three-year transition support package, which includes the Wage Credit Scheme, he said. Under the scheme announced in this year's Budget, the Government will subsidise 40 per cent of wage increases for Singaporeans who earn up to $4,000.

Mr Lim also refuted the need for a minimum-wage scheme, saying that it can be a "zero-sum game". He said that Singapore's wage model comprising the Workfare Income Supplement, Workfare Training Support and a progressive wage system is "more than a minimum-wage model".

He said: "(With this,) we can actually maximise the upside for the low-wage workers and, at the same time, minimise the downside".

Your daily good stuff - AsiaOne stories delivered straight to your inbox
By signing up, you agree to our Privacy policy and Terms and Conditions.