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Tutorial 3 Group 5 Tammy, Hang Wei, Yi Jie, Zi Qi

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What is minimum wage in the context of Singapore?

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Minimum amount of remuneration that an employer is required to pay wage earners  Prevent workers from being unduly exploited  Ensure minimum living standards for workers

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Uplift low-wage workers in the cleaning, security and landscape sectors.

5-Level career progression model where workers experience wage growth by completing courses and clocking years of experience

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Does not cover workers beyond the cleaning, security and landscaping industries. Only 15% of workers in the lowest 20 th  percentile of salary ranges experienced wage increase in PWM.

Assumes that the lowest skilled workers are capable of upgrading themselves and improving their productivity for higher wages.

Increase workers’ wages Training employees and be subjected to licensing and regulation

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02 SUITABILITY OF INCREASING MINIMUM WAGE IN SINGAPORE

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INCREASE STANDARD OF LIVING, REDUCED POVERTY AND INEQUALITY, INCREASE PRODUCTIVITY

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MINIMUM WAGE SHOULD APPLY TO BOTH LOCALS AND FOREIGNERS

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SINGAPORE SHOULD IMPLEMENT MINIMUM WAGE BECAUSE...

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With reference to WP’s proposed baseline of $1300

Align with SDP of having a higher minimum wage of $1760

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Amartya Sen’s capability approach: What matters for one’s well-being is not just the characteristics of commodities consumed but  what use the consumer can and does make of commodities  eg being healthy, being well-nourished, having self-esteem and taking part in the life of the community   Dignified, productive and creative lives

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Singapore: Inflation rate from 1985 to 2025*
(compared to the previous year)
3.45%
3.1%
2.29% .24%
2%
6.63%
5.25%
2.36%
1.67%
1.35%
0.96%
0.6%
0.49%
0.49%
.38%
0.58%
0.34
1.43%
Statista 2021

Increasing trend for the next few years Consumer Price Index increases Purchasing power of households will decrease

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COST OF LIVING ARE INCREASING IN SINGAPORE DUE TO…

Increase in  school fees  Increase in  cost of textbooks  E ducation inflation gained 16.9 per cent since 2013, outpacing both headline and core inflation.

Prices up by about 10 per cent  Adverse weather  that affect prices V arying price increases for household essentials

Cost increase about 8.5 per cent  Unable to reduce healthcare costs since difficult to increase supply Uncertain even if overall inflation stays low

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Importance of low-paid jobs in essential services  Increase minimum wage to reflect their contribution to society  Narrow existing inequalities Decent living standards in post pandemic world

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The full minimum wage should be phased in gradually and increase in its amount for SIngaporeans so employers can make necessary changes to the quantity and quality of their existing workforce.

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CNA (2019, May 22),  Elderly in Singapore need S$1,379 a month for basic needs: Study.  https://www.channelnewsasia.com/news/singapore/elderly-need-1379-a-month-for-basic-needs-lkypp-study-11554680 CNA(2019, Feb 9), Cost of living in Singapore: Slow overall inflation rate but some pressure points.  https://www.channelnewsasia.com/news/singapore/cost-of-living-in-singapore-slow-inflation-some-price-pressures-11199680 Phua , R (2020, November 3),  52,000 Singaporeans earn less than S$1,300 a month:  Zaqy  Mohamad to WP's  Jamus  Lim in discussion on minimum wage.  https://www.channelnewsasia.com/news/singapore/52-000-singaporeans-earn-less-than-s-1-300-a-month-zaqy-mohamad-13450534#:~:text=SINGAPORE%3A%20Around%2052%2C000%20Singaporeans%20earn,on%20Tuesday%20(Nov%203) Poh , J (2020, November 13),  Singapore’s Minimum Wage vs Progressive Wage Model: What’s the Debate About?  https://blog.moneysmart.sg/career/singapore-minimum-wage-pwm/ Singapore Democratic Party,  A New Economic Vision: Towards Innovation, Equal Opportunity, and Compassion.  https://yoursdp.org/wp-content/uploads/_ld/0/13_Economy_2.0.aa.pdf Singapore Democratic Party,  MINIMUM WAGE An Update to SDP’s policy on the economy  https://yoursdp.org/wp-content/uploads/media/2-Minimum-wage-policy-update-2020.pdf   STATISTICS SINGAPORE, KEY INDICATORS OF THE HOUSEHOLD EXPENDITURE SURVEY,2007/08 – 2017/18.  https://www.singstat.gov.sg/ - /media/files/find_data/population/statistical_tables/hes201718-key-indicators.pdf

The Minimum Wage Debate

 CNA (2019, May 22),  Elderly in Singapore need S$1,379 a month for basic needs: Study.  https://www.channelnewsasia.com/news/singapore/elderly-need-1379-a-month-for-basic-needs-lkypp-study-11554680 CNA(2019, Feb 9), Cost of living in Singapore: Slow overall inflation rate but some pressure points.  https://www.channelnewsasia.com/news/singapore/cost-of-living-in-singapore-slow-inflation-some-price-pressures-11199680 Phua , R (2020, November 3),  52,000 Singaporeans earn less than S$1,300 a month:  Zaqy  Mohamad to WP's  Jamus  Lim in discussion on minimum wage.  https://www.channelnewsasia.com/news/singapore/52-000-singaporeans-earn-less-than-s-1-300-a-month-zaqy-mohamad-13450534#:~:text=SINGAPORE%3A%20Around%2052%2C000%20Singaporeans%20earn,on%20Tuesday%20(Nov%203) Poh , J (2020, November 13),  Singapore’s Minimum Wage vs Progressive Wage Model: What’s the Debate About?  https://blog.moneysmart.sg/career/singapore-minimum-wage-pwm/ Singapore Democratic Party,  A New Economic Vision: Towards Innovation, Equal Opportunity, and Compassion.  https://yoursdp.org/wp-content/uploads/_ld/0/13_Economy_2.0.aa.pdf Singapore Democratic Party,  MINIMUM WAGE An Update to SDP’s policy on the economy  https://yoursdp.org/wp-content/uploads/media/2-Minimum-wage-policy-update-2020.pdf   STATISTICS SINGAPORE, KEY INDICATORS OF THE HOUSEHOLD EXPENDITURE SURVEY,2007/08 – 2017/18.  https://www.singstat.gov.sg/ - /media/files/find_data/population/statistical_tables/hes201718-key-indicators.pdf

The Minimum Wage Debate

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