Malaysiakini, the Strategic Information and Research Development Centre (SIRD) and the Civil Rights Committee (CRC-KLSCAH) organised a talk show in Kuala Lumpur on ‘Singapore Politics: Current Changes and the Next General Elections’, on Oct 7.

With talk now that early elections may be called next year in Malaysia, instead of 2013, and the debate surrounding the recent announcement of the 10th Malaysia Plan, this may be the opportune time to review the policy changes and statistics of the last five years or so in Singapore, with reference to the republic’s ruling government, People’s Action Party’s (PAP) manifesto published in the last elections. (note: Singapore’s next general elections are expected any time now, or latest by next year)

In this connection, it is perhaps noteworthy, that the Malaysian government published a 135-page, Mid-Term Review of the Ninth Malaysia Plan 2006 – 2010, on June 26, 2008.

In contrast, I understand that no comparable review of Singapore’s PAP manifesto has been done.

Jobs

PAP manifesto:

• Redesign old jobs to pay more, and upgrade workers’ skills so that they can earn more.

• Create jobs by growing new industries and upgrading existing ones.

Cleaners and road sweepers, etc, now earn around S$650 (RM,1,562) a month, down from around S$800 (RM1,922) in 2005;

84,000 unemployed residents in June, of whom about 16,500 had been jobless for more than 6 months, despite being expected to be the fastest growing economy in the world at 13 to 15 percent.

Singapore workers had only a 1.4 percent per annum real wage increase from 2001 to 2009. The last two years had negative real wage growth, with real earnings falling by 3.2 and 1.2 percent, in 2008 and 2009, respectively.

In contrast, Malaysia has fared better, where real wages grew by 1.9 percent per annum from 1998 to 2007, and was -4.7 and 1.4 percent in 2008 and 2009, respectively

Even though Malaysia’s inflation per annum at 2.4 percent, from 2000 to 2009, was marginally higher than Singapore’s, the important outcome to ordinary Malaysians is that they had a higher real wage growth than Singaporeans.

What is perhaps the most significant difference between Malaysia and Singapore, from the perspective of wages, may be that Malaysia has already approved the implementation of a Minimum Wage, whereas Singapore’s Government is still against having one.

According to an International Monetary Fund (IMF) study of five selected countries in Asia, Singapore had the lowest Real Wage/Earnings from 2008 to the second quarter of this year.

The latest labour statistics from the Singapore Ministry of Manpower’s (MOM) Labour Market Second Quarter 2010 report are far from encouraging, given that the Singapore economy is on course to become the fastest growing in the world this year – Real Earnings fell by 12 percent, from the first quarter to the second quarter.

Singapore workers have one of the longest work hours per week in the world, at 45.9 hours, beating South Korea which held the world record in 2008.

Media reports say the labour market is bursting at the seams, but on a seasonally adjusted basis, the resident unemployment rate rose from 3.2 percent in March to 3.3 percent in June.

In contrast, while Malaysia’s unemployment rate may appear to be higher than Singapore’s, at 3.2, 3.3 and 5 percent in 2008, 2009 and 2010, respectively, I understand that Malaysia’s rate is truly reflective of the unemployment of Malaysians, whereas Singapore’s does not break-down the unemployment rate data into citizens and permanent residents (PRs). (note : about 17 percent of Singapore’s resident population is estimated to be PRs).

The break-down of the unemployment data of locals into Singaporeans and PRs continues to remain a secret, despite almost yearly calls by Singaporeans for disclosure.

Close to half of all resident job seekers were about 40 years old, with 61 percent of the long-term unemployed were aged 40 and over.

Professionals, managers, engineers and technicians (PMETs) accounted for more than half of those made redundant and the re-employment rate of those with a degree was the lowest in 2009, at 61.2 percent.

Anecdotally, employers may prefer to hire non-Singaporeans as they do not have to pay Central Providend Fund (CPF), may not have to pay maternity leave, give national service reservist leave, cope with turnover problems, as work permit and S-Pass workers are generally tied to the same employer for two years.

2007 to 2009 – productivity had declined sharply among small and medium-sized enterprises (SMEs), with all sectors registering lower levels of output, with Profit Per Employee ranging from minus 25 to minus 70.6 percent

Re-employ older workers

PAP manifesto:

• Encourage companies to employ and retrain older workers.

• Media reports have said that companies are cutting workers’ pay when they reach 60, not offering re-employment, etc.

Retirement Age Act to be implemented in 2012, will allow employers to cut pay based on “reasonable factors” like the employee’s productivity, performance, duties and responsibilities?

Singapore employers can give an Employment Assistance Payment (EAP) of between S$4,500 (RM,10,811) to $10,000 (RM24,025) , if the employer does not re-employ the worker – of course, employers may also terminate or reduce pay and benefits even before  employees reach 62, provided it is based on “reasonable factors” other than age?

Workfare

(Work Incentive Scheme for older lower-income Singaporean workers)

PAP manifesto:

• Do more for lower-income Singaporeans”; and,

“Distribute Workfare Bonus to encourage and reward work”

• Many self-employed older lower-income Singaporeans do not contribute to Medisave in order to qualify for Workfare, because the entire Workfare payout is to their Medisave account, which can only be utilised to pay for approved medical expenses and medical insurance premiums.

Employees only get about 29 percent of their Workfare payout in cash, with the bulk to their CPF.