My answer is a resounding yes. Two reasons: Firstly, from an economic perspective, most employers would prefer lower salaries while employees would want higher pay. This can sometimes create unwanted friction between both sides. Secondly, inflation rates in Singapore have been positive 17 times out of the last 20 years, which has a knock-on effect on disposable income.
Hence, mediation by the government in the form of raising salaries for lower-wage workers is the right move. Our current model embraces a Progressive Wage Model (PWM) for the cleaning, security and landscaping industries where workers are encouraged to upskill themselves over time. Additional schemes by the government, such as Workfare, provide extra support for those who need it most.
As a business leader, even if raising salaries for lower-wage workers results in higher business costs, it gives the organisation a fairer outlook on actual expenses incurred to remain competitive and helps to strengthen our overall social compact in Singapore.
Mario Singh
Chief Executive Officer
Fullerton Markets
