Minimum wage levels not feasible, government says

Singapore - The Singapore government recently shot down calls for a minimum wage policy, citing Hong Kong and Taiwan as countries that were beset with problems after implementing minimum wage policies.

During recent Parliamentary debates, Manpower Minister Gan Kim Yeong reiterated that minimum wage would not work in Singapore. In Hong Kong, he said, an estimated 100,000 low-wage workers are likely to lose their jobs after the minimum wage policy was implemented. This impact is likely to be worsened during an economic crisis as bosses would be more inclined retrench them as companies are unable to adjust their salaries, Gan added.

Instead, Gan said the best solution would be the current Workfare policy as it helps low-income workers earn a higher income, while ensuring their job safety as this cost is borne by the government.

 

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