By Leong Sze Hian
I refer the article “63,000 firms tap government productivity scheme in 2013” (Channel NewsAsia, Jan 1).
Companies that use PIC increased 3 times?
It states that “63,000 companies took advantage of the Government’s Productivity and Innovation Credit (PIC) to deal with manpower shortages in 2013.
That is three times more than in 2012.”
But productivity Year to Date (YTD) is – 1.8?
Since the number of companies that use the PIC increased 3 times – why is it that productivity year-to-date till the third quarter is – 1.8? (Source: Department of Statistics Monthly Digest of Statistics)
Last year (2012), productivity was – 2.6.
Wages can only go up with productivity increases?
We have been told time and again that in order for wages to go up, there must be an increase in productivity.
Productivity last 7 quarters was – 4.4?
So, since productivity for the last 7 quarters (for 2012 and up till the third quarter of this year) was – 4.4 – does it mean that wages may not rise again – after an estimated less than 1% per annum real median wage growth (excluding employer CPF contribution) in the last decade or so?
Manpower shortage plus PIC does not increase wages?
Finally, if the increase in PIC was “to deal with manpower shortages” – why hasn’t real wage growth been increasing in recent years?