Opposition parties respond to ESC report
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By Teo Xuanwei, TODAY | Posted: 04 February 2010 0733 hrs
SINGAPORE: Several opposition parties have responded to the Economic Strategies Committee's (ESC) report and in general, they felt the recommendations were a thrust in the right direction - though more could be done.
While the Workers' Party will give its views when Parliament debates the Budget in March, when Singapore People's Party secretary-general Chiam See Tong will also have a chance to respond, other parties not represented in Parliament seized the chance to comment yesterday.
The Reform Party and National Solidarity Party (NSP) cited similar aspects of the report for discussion: The lot of low-wage workers, ways to help local small-and-medium enterprises and how the economy should grow.
In a media statement, Reform Party secretary-general Kenneth Jeyaretnam called for a minimum wage - in tandem with the proposed hike in foreign worker levies - to "force" employers to use labour more productively. He said the ESC's suggestion to raise levies "may be a means of achieving the same goal but does not directly raise or put a floor under the wages of less-skilled Singaporean workers".
He added: "It may look more efficient on economic grounds, but if employers go further afield in search of cheaper and cheaper labour, it may nullify the effects of the increased levy."
The NSP did not offer suggestions on how to help low-wage workers, but secretary-general Goh Meng Seng felt the ESC should not dissect the economic issues without considering the social, cultural and political ramifications. "We need a more holistic approach instead of formulating quick fixes for short term gains," he said.
On ways to encourage more start-ups, both parties agreed Government-linked companies hindered the growth of local SMEs. The NSP said the Government should "provide funds and facilities for technological research and upgrading SMEs into Original Equipment Manufacturers". If not, local SMEs would remain "mere vendors providing parts and services for MNC plants".
Mr Jeyaretnam suggested "dismantling or privatising the whole GLC structure", including Temasek Holdings and the Government of Singapore Investment Corporation.
On the ESC's suggestions for growing Singapore into a Global-Asia Hub, the Reform party said manufacturing should eventually comprise less than 20 to 25 per cent of the economy, as suggested by the ESC, "given Singapore's limited land and other resources".
Mr Goh suggested wooing regional economies to overcome constraints: "There's no mention whether Singapore will work actively towards a more comprehensive free trade zone in South-east Asia."
He also expressed concern at the possible plan to price energy to reflect real costs.
"Singapore's energy pricing is already on the high side in this region. We should take care of implementing pricing policy that would affect our cost of living, as well as doing business," he said.
The possibility of nuclear energy as an option for Singapore worried both parties, due to Singapore's small size and dense population.
Moreover, on the ESC's overarching theme of improving productivity, the Reform Party said it "supports in-principle the idea of a high-level national council to boost productivity".
As for higher investments in education, Mr Jeyaretnam said the target amount should rise to between 5 and 6 per cent of gross domestic product, from the current average of 2.8 per cent over the last five years, to be on par with other advanced countries.
Meanwhile, the Singapore Democratic Party called the ESC's suggestions "old wine in a new skin". SDP secretary-general Chee Soon Juan said: "Save for the development of nuclear power, haven't we heard all this before?"
He cited examples such as the Government's National Technology Plan in 1991 to become a world-class innovation-driven economy by 1995; the SME21 plan in 1996, targeted at helping start-ups; and the 2001 Economic Review Committee report, which touched on using levies to regulate the demand for foreign workers.
"If all these initiatives had been effective, why the persistent problem of declining productivity and the need for another report?" he said.
Dr Chee said it will present "concrete alternative proposals in the days and weeks ahead".
- TODAY/sc
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Congrats to Mr Chew for setting up this forum.
Hope we will read more useful, interesting, helpful articles.
Come, people, let us participate.
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A good move by the opposition parties.