SINGAPORE – Even as the Government sets its sights on building a strong Singaporean core in the workforce, veteran economist Lim Chong Yah warned that moving in such a direction nationally could end up obstructing employers in certain sectors.

“One cannot place too much obstacles for the employers to exercise their own judgment,” said the emeritus professor and former National Wages Council (NWC) chairman. “For example, the maid sector. If you say you need a core of Singapore maids, do you think it’ll work? No Singaporeans now will want to be maids.”

Speaking at a dialogue organised by the EDB Society and The Straits Times yesterday, Prof Lim acknowledged that the concept of a Singaporean core is interesting, especially if it is applied to a sector that has been carefully selected. However, he also stressed that employers should be given maximum freedom to run their businesses in a market-oriented economy — “not an economy by direction or by command”.

Prof Lim added that more foreign talent should be brought into Singapore to boost sluggish productivity growth. “Don’t forget these talents were brought up by other people. They spent their money investing in them. We only get the fruits of their labour … Workers (earning) below S$1,000, S$2,000 — we should try not to have them. That’s the solution to our future.”

Repeating his earlier calls for a compulsory minimum wage, Prof Lim said such a policy would supplement the efforts of the NWC, a tripartite body that issues wage guidelines yearly, and allows for more equitable sharing of “our national cake, as it grows”. However, Manpower Minister Lim Swee Say, who was at the dialogue, felt that a minimum wage legislation would pose many problems, as seen in other countries.

“If you set the minimum wage too low, it doesn’t solve any problem. You set it too high, some workers lose their jobs,” he said, adding that employers tend to peg their workers’ pay to the minimum wage, instead of offering higher salaries.

National Trades Union Congress secretary-general Chan Chun Sing, who also attended the dialogue, noted that crafting such a legislation was not a simple matter. “If you really care enough for low-wage workers, we really need to look at how we design their jobs upfront, rather than as an afterthought downstream,” he said.

Responding to Prof Lim’s criticism of having a Singaporean core across all sectors, the Manpower Minister said the Government must try to strike a fine balance between being pro-business and pro-worker.

“If today, we don’t have the expertise in that particular area, obviously we’ll use foreign talent. But over time, we must find ways to localise that talent. Otherwise, it won’t make sense … all the best jobs go to foreigners,” said Mr Lim.

Waving aside criticism that the Government has become more pro-business over the years, and overconcentrated on growth at the expense of income distribution, Mr Lim said the Gini coefficient — a measure of income inequality — is merely one indicator of progress. “Is it true that this Government kind of neglected the sharing of wealth? I think the answer is no ... the Gini coefficient factor does not say everything.

“(This is) because we spent a lot of resources, generated through progress, in other areas — housing, education for all, good public healthcare,” he added. VALERIE KOH