Salaries of most low-wage workers rose in last 5 years

Wages of most low- wage employees in Singapore have picked up significantly over the past five years, despite the increase in the proportion of foreign workers in the workforce.

In Parliament yesterday, Minister of State for National Development and Manpower Tan Chuan-Jin cited statistics showing that the real incomes of Singaporean workers in the bottom 20 per cent - also referred to as the 20th percentile - rose 11.5 per cent from 2006 to last year.

At the 20th percentile, household income per member also grew by 13.6 per cent in real terms over the same period.

"This improvement at the household level reflected not just the rise in individual wages in the last five years, but also the fact that more members of the household have found employment in an economy that has created many new jobs," he said.

"The reality, therefore, is that we have not done badly in the last five years. Moreover, this is even before we consider the very significant and comprehensive support that we are providing to lower-income families."

Still, the cost of living in Singapore - where the consumer price index (CPI) is expected to remain at around 5 per cent in the next few months - bears monitoring, Minister for Trade and Industry Lim Hng Kiang said.

He said that the two largest contributors to CPI are rentals on owner-occupied accommodation, and car prices. This means that most resident households are unaffected, as they already own their homes. Similarly, only new car buyers will feel the pinch from the rise in certificate-of-entitlement prices.

Food-price inflation, meanwhile, remains at a "relatively low" 3 per cent, he said.

This is nowhere near the peak of 2008, when prices skyrocketed to close to 8 per cent due to poor weather conditions that resulted in a global supply shortage, he added.

Aside from keeping a close watch on inflation, Mr Tan said the Government is rolling out a "comprehensive and active strategy to help low-income families improve their overall quality of life and share in Singapore's continued progress".

While "the best thing the Government can do for low-income families" is to create good jobs, he said it has also given out grants to help low-income workers and their families own their flats, as well as education and health-care subsidies.

Mr Tan agreed with MPs Denise Phua and Sylvia Lim that more must be done to raise salaries in sectors where wages have lagged behind, such as cleaning, retail as well as food and beverage.

He said the Government will tighten accreditation frameworks, to raise standards and enable workers in these sectors to enjoy better employment terms.

Workers will benefit by receiving appropriate wages, commensurate with the higher training, standards and productivity required. Details are being finalised, he added.

"We are taking a balanced approach which involves deliberate intervention, to support restructuring, raise skills and ensure that our lower-wage workers get a fair share of productivity gains," said Mr Tan. "We are not leaving things to the market."