REACH 357 - Are you feeling optimistic about the rebound in wage growth? Do you think that wage growth in your sector has kept pace with the cost of living?
(SK)
06 Jun 2022 (10am - 7pm)
REACH
[10:16 am, 06/06/2022] +REACH: Dear Contributors,
Welcome back! ๐
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Megan ๐
[10:20 am, 06/06/2022] +REACH: ๐ขTopic๐ข
The Ministry of Manpower (MOM) said last Monday (May 30) that all sectors saw a larger percentage increase in wages last year compared with 2020, buoyed by the impact of eased pandemic safe management measures and travel restrictions. With a large majority of companies raking in profits, 70 per cent of workers saw their pay packets expand.
๐ฌ Are you feeling optimistic about the rebound in wage growth? Do you think that wage growth in your sector has kept pace with the cost of living?
MOM reported that total wage growth last year among employees who had been with the same employer for at least one year was 3.9 per cent, a similar figure to 2019. This was an increase from the previous year. In 2020, the year the Covid-19 pandemic hit, total wage growth slowed to 1.2 per cent.
However, real wage growth, which takes into account the inflation rate, was dampened by higher inflation as spending power increased by just 1.6 per cent. High prices are expected to persist for the rest of the year as lockdowns in China and the Ukraine war worsen supply bottlenecks. Inflation is expected to peak at 4 per cent between July and September before easing in late 2022.
On Sunday (Jun 5), the Public Service Division (PSD) announced that about 23,000 civil servants will get a pay rise of between 5 per cent and 14 per cent from Aug 1 this year. Explaining the adjustment, PSD said the Civil Service periodically reviews salaries and adjusts them "when necessary to broadly keep pace with, but not lead, the market".
๐ Wage growth rebounds to 3.9% in 2021; 7 in 10 workers receive a raise
๐๐ป https://www.straitstimes.com/singapore/jobs/wage-growth-rebounded-to-39-in-2021-from-12-in-2020-7-in-10-workers-received-raises-mom
๐ Robust pay rises in Singapore last year tempered by inflation
https://www.straitstimes.com/singapore/jobs/robust-pay-rises-in-singapore-last-year-tempered-by-inflation
๐ Six in 10 in Singapore prepared to request pay rise amid labour crunch, inflation: Survey
๐๐ป https://www.straitstimes.com/singapore/jobs/six-in-10-in-singapore-prepared-to-request-pay-rise-amid-labour-crunch-inflation
๐ About 23,000 civil servants to get pay rise of between 5% and 14% from August
๐๐ป https://www.straitstimes.com/singapore/jobs/about-23000-civil-servants-to-get-pay-rise-of-between-5-and-14-from-august
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[10:53 am, 06/06/2022] +Smiley face: 6 June, 2022
"The world is heading towards a Prolonged inflationary timeline."
This is a mitigation to ease the rising cost of livings. The latest increase in wages of the public service (private sectors to follow?) is a beginning to adjust upwards into a new level of equilibrium of aggreate supply and demand of goods & services & foods. It is by no means the path towards stabilisation of prices which will br a longer path hopefully by 2026. Will there be another wage adjustment comes Q3-2023? What if there comes an unintended FAMINE (famdemic) starts from Africa and into Asia, how would these vulnerable nations and least vulnerable ones react?
What's the immediate relieves?
The lower wage workers and the low income families expenses will be 'neutralised', that means indifference between yesterday wages into tomorrows inflation of all things.
A low wage worker and/or a low income family, we can quantify by the monthly income of $4000 or less. This monthly income can fluctuate up or down as most families in this category are either single employed, duo employed with either breadwinner doing gig jobs or part time basis.
Sum things up, to hope that price of goods and services will come down to pre 2019 level is hopeful and what some will say, "whatever goes up, it may not fall easily?" Perhaps, these prices will eventually stabilise to a new high, is that what millions are calling it a RESET?
- - in progress - -
[10:59 am, 06/06/2022] +Smiley face: "the next vulnerable group to WATCH will be the families with $5000 monthly income. This inflation, these economics animals' have no compassion and no limit too!"
- - annoymous
[11:05 am, 06/06/2022] +Frankie Wee: Inflation = income
Cost living = spent expenses
Economy = risings (example rental retail)
Tax = upgrade and budget
Income $5,000 enough for feed family?
[11:11 am, 06/06/2022] +Smiley face: Hi Frankie,
The dynamics of this uncertain trajectory of inflation is making economists and scholars scratching and breaking heads!
It is an evolving situation, week by week and month to month. Is not an easy task to stabilise prices and it is tougher to forecast ahead, meaning quarterly and bi annually! All boils down to WAR, COVID, OIL & GAS AND FOOD SUPPLY!
[11:12 am, 06/06/2022] +Smiley face: ๅทฆๅณๅฐ้พ
[11:20 am, 06/06/2022] +Timothy Low: My industry’s last salary adjustment was in 2014. It has been 8 years since we have any salary adjustment while my other friends are now all earning more than me. My net income have been decreasing after factoring in inflation
[11:22 am, 06/06/2022] +Frankie Wee: Hope the government will rising budget and help us cost living rising.
If GST increase 7.5% to 8% because budget spent on.
[11:22 am, 06/06/2022] +danielhl chua: Its only the beginning.
We see that the prices of petrol continuing to soar. Eventually the transportation cost will be passed on to consumers. I do not see an end to it unless
1) Alternatives are explored. (Other resources that has higher sustainability.If petrol price continues to soar without intervention, i will consider switching to electric cars.)
2) petrol tax is subsidised by gov to keep the cost of living low.
Wage rebound needs to be kept up to include the low income earners. If continue to be exploited, it affects their livelihood and eventually they will forgo the jobs.
The success stories of FTs earning enough to return home to buy lands and houses are meant to attract more people to this job, yet there are locals who are complaining that these workers are taking advantage of Singapore on social media. One can only imagine how much sacrifices they made in order to keep up with the high standard of living, in order to save and scrimp for their families to live a good life.
[0:02 pm, 06/06/2022] +Smiley face: 6 June, 2022
"Safe Haven and Cost Haven (ๆฌๅฎถ)"
Singapore:
The safeest haven within Asia, in comes the HNWIs! The cost of livings is ranked top 3 among developed nations. Our workforce is a highly educated, highly competent and highly dependable people mix. For Singapore, the continuous convergence of funds, talents and technologies are economic muscles & abs in building!
Vietnam, Indonesia, Malaysia:
These three are culturally different, big population size and economics developments in progress - mutually exclusive of one or the other two. Prospectively, Vietnam is enjoying double digits growth follows by Indonesia and lastly Malaysia. It is a good happening for the region aka Asean. These three nations are cost havens to potential investors, existing es…
[1:06 pm, 06/06/2022] +REACH: Dear Contributors,
We want to HEAR from YOU!
We have had good feedback from this group, and we hope that we can keep the discussion robust and active!
Megan ๐
[1:22 pm, 06/06/2022] +~N: I'm glad if there is wage increase, certainly appreciate. I'm not feeling optimistic. A wage increase for a working individual does not translate to affordability of cost of living for a family with dependents
[1:33 pm, 06/06/2022] +Kelvin: Hi Megan, they never release full data thus hard to discuss.
[1:42 pm, 06/06/2022] ☸️ Danny ๅฟ:
1. For my family members, one work in an industry that is high in demand for the skillsets, hence an across-the-board 10% is declared for the staff.
Good performers get a 20% increment.
He got at 20.45% increment.
2. My extended family members and close friend family members - some work in the civil service.
As announced, their salaries will increase by 5% to 14% from Aug 2022, so I presume they will have a salary increment of 5% to 14% salary increment.
3. For retirees, the only means of income is through shrewd investment of accumulated savings.
The interest rate is currently on the rise, and will help to bring in higher interest income and investment return.
From short term, to medium and long term investment - expected to bring in on average about 1.8% to 4% investment return.
4. As for inflation,
a. Energy inflation - on average, monthly 51% jump in price after old fixed price plan expired and a new plan with higher tariff - despite no change in energy usage.
b. Food inflation is another very high inflation item, 12.5% (one bowl of mee increase from $4 to $4.50, 80% (drink increase from $1 to $1.80) etc.
Plus many other inflation in other items - transport, electrical goods etc.
5. So not particularly happy about increase in income revenue - as inflation is very steep.
6. Some retirees with not so deep pocket to invest are particularly hit quite badly by the inflation.
CDC vouchers, U-save vouchers - do help to cushion some of the food price hike and the energy hike - but those not living in HDB flats - have no support.
[2:24 pm, 06/06/2022] ☸️ Danny ๅฟ:
https://www.scmp.com/week-asia/economics/article/3180331/malaysia-india-how-are-export-bans-chicken-wheat-sugar
From Malaysia to India, how are export bans on chicken, wheat, sugar affecting Asia?
The recent moves by Asian governments to save their own food supplies have sent already inflated food prices soaring across the region amid the Ukraine war.
While protectionism lowers the threat of civil unrest, analysts say it may be ineffective in keeping prices of food staples low and could even hurt producers as buyers diversify.
[2:45 pm, 06/06/2022] ☸️ Danny ๅฟ:
Ant Group launches digital wholesale bank in Singapore to serve SMEs
https://www.channelnewsasia.com/business/ant-group-launches-digital-wholesale-bank-singapore-serve-smes-2729041
4 digital banks in Singapore coming on board.
Another good source of investment - offering competitive interest rate - for deposit.
[2:48 pm, 06/06/2022] ☸️ Danny ๅฟ: https://www.channelnewsasia.com/singapore/service-providers-hair-salon-home-repair-raising-prices-stay-afloat-inflation-2725131 'Our costs have not stopped increasing': Some service providers in Singapore raising prices to stay afloat.
[2:48 pm, 06/06/2022] ☸️ Danny ๅฟ:
Price increases in many goods and services across the board.
[3:33 pm, 06/06/2022] +Rama: Think of anything retail, f and b - increase coming fast
[3:59 pm, 06/06/2022] +Smiley face: 6 June.2022
"Inflationary Impacts of Consuming and Consumption"
The foreseeable consequences of rising prices create social inequalities & political repurcussions. How policymakers will intervene to spread many limited resources to a fairer extend keeping in mind of up to 20% of households (prudent assumption) will feel these hot rising prices?
Two groupings, that is people whom depend on savings or monthly CPF withdrawals like retirees & lonely elders and the younger ones that are working for a fixed monthly incomes. This divergence coupled with a spectrum of consumptions will further widen the existential gaps of inequalities and social privileges (advantages of one having more over many others that having fewer). The more "better off" members of a soc…
[4:08 pm, 06/06/2022] ☸️ Danny ๅฟ:
Nothing that I have come across have not increase their price.
It dampen the mood of income increment - because inflation offset any income gain.
[4:15 pm, 06/06/2022] +REACH: Lawrence Wong promoted to Deputy Prime Minister in Singapore Cabinet reshuffle
More: https://str.sg/w6QJ
[4:15 pm, 06/06/2022] ☸️ Danny ๅฟ: Congratulations!
[4:20 pm, 06/06/2022] +Ken Loh: ๐๐ป
[4:23 pm, 06/06/2022] +REACH: PM Lee announces Cabinet changes, promotes Lawrence Wong to Deputy Prime Minister
More: https://www.channelnewsasia.com/singapore/lawrence-wong-deputy-prme-minister-singapore-cabinet-reshuffle-pm-lee-2729451
[4:42 pm, 06/06/2022] +Frankie Wee: Congratulations ๐ ๐
[4:51 pm, 06/06/2022] +Rama: So LHL stepping down!?
[5:57 pm, 06/06/2022] +REACH: Dear Contributors,
We want to HEAR MORE from YOU!
We have had good feedback from this group, and we hope that we can keep the discussion robust and active!
Megan ๐
[6:01 pm, 06/06/2022] +Caleb: Don't have much wage growth.
The wage growth has not kept pace with the cost of living.
[6:03 pm, 06/06/2022] +Uncle Law: Companies will adjust salary to keep their staffs.
[6:07 pm, 06/06/2022] +Dong Liang: Won't be so fast. Likely after GE and stay on as SM or MM until 5G.
[6:07 pm, 06/06/2022] +Rama: His goal of 70 is out!
[6:24 pm, 06/06/2022] ☸️ Danny ๅฟ:
1. 2 things to keep in check - if wage increment do play a part in ensuring higher standard of living for our population.
2. One is to ensure self-sufficiency in Energy to control energy price.
Energy price drive up notably all prices cutting across all economic sectors :-
- transport
- energy bills for household, business, production plants etc
- logistics cost
-which in turn drive up food prices, manufacturing prices, household energy bills, transport prices like taxi, private hire, bus, MRT, priavte cars etc.
3. 2nd is to ensure self-sufficiency of food, or diversification of our food sources - to protect oursleves from food protectionism, restricted food export - due to global climate, pandemic or war.
4. Only if we can meaningfully control the price of energy and food - can we ensure that our income increment genuinely improve our standard of living - and not lob off by the steep inflation.
[6:24 pm, 06/06/2022] +SL: The “wage growth” is for 2021 before this year's inflation due to geopolitical adjustment?
The quantum of adjustment in 2021 may have already been diluted by the impact of (1) price increase from activity recovering from covid and (2) supply chain issues at the beginning of the year if any. Further Statistic comparison may be worth assessing the real impact.
[6:28 pm, 06/06/2022] +Smiley face: Let's start with low wage workers like cleaners. Could the proposed increments be implemented sooner?
MOM, MOF, MSF have exact headcount and the necessary tools to push forward the initiative that is wage increase for these LWW.
[6:28 pm, 06/06/2022] +Rama: I support this
[6:29 pm, 06/06/2022] +Smiley face: With the escalating of Geopolitics and global inflationary mode, we must be on 24/7 lookout for changes, so fluid!
[6:30 pm, 06/06/2022] +Smiley face: On the lookout... ่ฟๆฐดๆไธไบ่ฟ็ซ
[6:34 pm, 06/06/2022] +SL: Institution economists from Wall Street may provide further input on the impact of the EU 7th round of sanctions and the continued fluctuation of the commodity prices that indirectly affected the price and cost of supply chain restructuring. Then, the actual impact on my living cost can be asses. Cutting all expenses is an interim measurement for sustainability until the point of subsequent decision-making.
[6:35 pm, 06/06/2022] +Smiley face: The coming Fed meeting, will the Fed increase interest rate to another 50 points?
This will be another blow and not so to deflate prices!
Simply a tough task to land softly, economies and economics!
[6:36 pm, 06/06/2022] +SL: Fed is not able to continue to raise the points, it will affect the year-end election.
[6:36 pm, 06/06/2022] +Smiley face: Wait....
[6:36 pm, 06/06/2022] +Rama: Cutting all unnecessary expenses and biting the bullet has to be the norm for an indefinite period.
[6:37 pm, 06/06/2022] +Boon: Dear Reach, I am happy for our civil servants who are the pillars for smooth policy execution. Will this increase be reflected in subsequent agency fees that the public needs to pay? Does this also set a reference for the private sector to follow? We have to remember that an increase in base = also an increase in employer CPF contributions that adds to the cost/cashflow of running a biz. No one will ever be against a salary increase - the challenge is now how can such increases be sustainable for the govt and biz in the face of current and future biz challenges/recessions.
[6:37 pm, 06/06/2022] +SL: I hope there will be good signs in the next few months that this is an interim measure and not an indefinite period
[6:37 pm, 06/06/2022] +Smiley face: 6 June, 2022
Morgan Stanley's Pick says a paradigm shift has begun in markets. What to expect
https://www.cnbc.com/2022/06/05/morgan-stanleys-pick-says-a-paradigm-shift-has-begun-in-markets-what-to-expect.html?__source=androidappshare
Ted Pick - Morgan Stanley:
“It’s an extraordinary moment; we have our first pandemic in 100 years. We have our first invasion in Europe in 75 years. And we have our first inflation around the world in 40 years,” Pick said. “When you look at the combination, the intersection of the pandemic, of the war, of the inflation, it signals paradigm shift, the end of 15 years of financial repression and the next era to come.”
(COVERGENCE AND INTER PLAYING OF BIG VARIABLES?)
Markets will be dominated by two forces – concern over inflation, or “fire,” and recession, or “ice,”
(MELT DOWNS AND DEFLATIONARY?)
Out of the ashes of this transition period, a new business cycle will emerge, Pick said.
(RESETTING OF COMMON MARKETS?)
“This paradigm shift at some point will bring in a new cycle,” he said. “It’s been so long since we’ve had to consider what a world is like with real interest rates and real cost of capital that will distinguish winning companies from losing companies, winning stocks from losing stocks.”
(SURVIVAL OF THE FITTER ONES'?)
[6:38 pm, 06/06/2022] +Smiley face: Hi Mr Rama,
Perhaps is just the end of entering a new beginning...?
[6:39 pm, 06/06/2022] +Rama: The pandemic situation worldwide, break in supply chain, war in Ukraine, tension in Taiwan straits, South China Sea, Middle East plays an important part in normalcy around the world
[6:40 pm, 06/06/2022] +Rama: That is definitely going to be but how will mankind adapt peacefully and move on!?
[6:40 pm, 06/06/2022] +Smiley face: Correct, this covid is around.
Inflation will calm down not this bug!
[6:40 pm, 06/06/2022] +Smiley face: Fitters will survive, what's old saying CONSOLIDATION coming...
[6:40 pm, 06/06/2022] +Boon: We need policies , proposals and actions, to avoid increased wages leading to increased biz expenses, leading to more biz failures, leading to an ever higher fees/changes that consumers have to pay. This is a bad cycle to get into. Should the nation address, or the next topic be on this - how to avoid such a spiral?
[6:41 pm, 06/06/2022] +Rama: At cost to the average human being and poor countries
[6:41 pm, 06/06/2022] +Smiley face: Correct, wage increase is a momentum strategy
[6:42 pm, 06/06/2022] +SL: The inflation (maybe temporary- short term) but the restructuring of the supply chain will be medium to long (2.5-6 or 10 yrs at least). The cost of business will go up and stay.
[6:42 pm, 06/06/2022] +Smiley face: Reset...
When 2 giants fight it out... All smaller creatures best STEP ASIDE!
[6:42 pm, 06/06/2022] +Rama: We can't cost going up but must do our best to live with it.
[6:42 pm, 06/06/2022] +Rama: Exactly
[6:43 pm, 06/06/2022] +Rama: Avoid not cost
[6:43 pm, 06/06/2022] +Smiley face: Yupp, reset...
From high cost centers into new lower cost centers like India and Vietnam + Indonesia...
[6:43 pm, 06/06/2022] +Frankie Wee: There is still covid-19 pandemic uncertainty the future inflation.
[6:43 pm, 06/06/2022] +Rama: What was low cost previously will shift elsewhere
[6:44 pm, 06/06/2022] +SL: Talented resources will move or serve MNC with higher salaries in this globalized world.
[6:44 pm, 06/06/2022] +Smiley face: One sure thing....
Singapore is in the SWEET SPOT to thrive...
We are 6 million population, it will be easier to steer out of the Prolonged PERFECT storm!
[6:45 pm, 06/06/2022] +REACH: Dear Contributors,
⏰ We will be closing the chat in 15 minutes ⏰
Thank you very much for being part of our WhatsApp chat and participating actively.
Goodnight!
Megan
[6:45 pm, 06/06/2022] +SL: Provided these countries is able to substitute the correct primary manufacturer site. The overall cost and profit of the supply chain will affect the companies decision.
[6:45 pm, 06/06/2022] +Rama: A China guy just bought 20 condo unit with an option for another 10
[6:45 pm, 06/06/2022] +Smiley face: Visualise our talented PMETs station in Vietnam as HOD or CFO or CEO
[6:46 pm, 06/06/2022] +Smiley face: A first happiness... Though not so good for some of us...
Those having lots snd many having much lesser...
[6:46 pm, 06/06/2022] +SL: But hod + cfo + ceo did not produce the goods by themself… ๐ค
[6:47 pm, 06/06/2022] +Smiley face: There really not much room to move for the betterment and survival of Singapore.
We are lacking of vital natural resources other than human!
[6:48 pm, 06/06/2022] +Smiley face: Lower cost of manufacturing...
Broad based workers and key managers.
[6:49 pm, 06/06/2022] +Smiley face: Singapore is ranked highly by the world and OECD... Our well educated and disciplined workforce!
[6:49 pm, 06/06/2022] +SL: I think our leaders are closely monitoring the supply chain + geopolitics events that continue to happen. I guess they will have the best plan for Singapore and us.
[6:49 pm, 06/06/2022] +Rama: Agree
[6:49 pm, 06/06/2022] +Smiley face: It is always PEOPLE that makes things move...
[6:50 pm, 06/06/2022] +Smiley face: Leaders leading people...
Fools leading fools...
Your choice?
[6:50 pm, 06/06/2022] +Rama: Thanks to the foresight of our country founding PM and government
[6:50 pm, 06/06/2022] +Rama: Leaders leading people
[6:50 pm, 06/06/2022] +Smiley face: Its all about HARDWORK AND DISCIPLINE
[6:51 pm, 06/06/2022] +SL: Unless everything is automated like the Tesla factory, which is not possible to happen in these countries, the speed of exploiting the benefit of Low labour cost is increasing and may not sustainable.
[6:51 pm, 06/06/2022] +Smiley face: At times, abit of luck is needed to complete thr cycle of success!
[6:51 pm, 06/06/2022] +Rama: Taste the salt before the sweetness
[6:52 pm, 06/06/2022] +Smiley face: Perhaps, China is quietly relocating some of their manufacturings into Vietnam and so on
[6:52 pm, 06/06/2022] +Rama: Not surprising
[6:53 pm, 06/06/2022] +Smiley face: Why Vietnam GDP exploded last Q1?
The end VALUE ADDED finished goods out of Vietnam... That's a real GDP DRIVER in motion
[6:53 pm, 06/06/2022] +SL: In this world, anything and everything is possible. A world full of miracle
[6:54 pm, 06/06/2022] +Smiley face: Singapore, comes 2030, wr will hsve up to 50% increase in OUR GDP!
Same model of VALUE ADDED final products exported out of Tuas Mega port.
[6:55 pm, 06/06/2022] +Smiley face: This fight for the supremacy between US-China will Prolonged into 10-15 years.
It took the fall if Berlin Wall like 40 years to materialise.
[6:56 pm, 06/06/2022] +Rama: I say by 28 years from now
[6:56 pm, 06/06/2022] +Smiley face: Low cost ๅช้ๅๅช้ๅ
[6:56 pm, 06/06/2022] +SL: Restructure the World order, you mean?
[6:57 pm, 06/06/2022] +Smiley face: Perhaps, technologies, green economies and migration will quicken this deep cut into 2!
[6:57 pm, 06/06/2022] +Smiley face: Yupp... Reset in play now... Shall we assume is into year 3
[6:57 pm, 06/06/2022] +Rama: Along with AI and robotics
[6:57 pm, 06/06/2022] +Smiley face: Yupp
[6:58 pm, 06/06/2022] +Smiley face: Low cost ๅช้ๅๅช้ๅ
[6:58 pm, 06/06/2022] +SL: I don't know.
[6:58 pm, 06/06/2022] +SL: Looking forward for a miracle
[6:59 pm, 06/06/2022] +Rama: Likewise
[6:59 pm, 06/06/2022] +Smiley face: Since cost6og raw materials and labor are fixed...
How MNCs and nations play to competitive advantage?
Still cost is the decider, this devil!
[7:00 pm, 06/06/2022] +Smiley face: The end price of goods and services will not come down.... A reset!
[7:00 pm, 06/06/2022] +REACH: Dear Contributors,
We will be closing the chat for today.
Thank you very much for being part of our WhatsApp chat and participating actively.
Goodnight!
Megan ๐
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