17 Apr '12, 9pm
Prof Lim Chong Yah’s proposals are timely and should be implemented
Labour Chief and Minister in the Prime Minister’s Office Mr Lim Swee Say said: “This approach is very risky. What is at stake are jobs and structural unemployment. You can push up the wages of low-wage workers by 50 percent in three years, but you cannot improve his skill, his productivity, his employability by 50 percent in three years.” Mr Lim said that if productivity does not increase correspondingly, competitiveness would be lost, which may cause some businesses to close down or re-locate out of Singapore. This in turn would lead to a higher unemployment rate and structural unemployment. As such, Mr Lim stressed that the labour movement’s current productivity-driven approach is more sustainable. Minister of State for Trade and Industry Mr Teo Ser Luck said: “From the business perspective, it’s not just productivity increase that we need, we need the economy to do well...