Calls for universal minimum wage a political move, says PAP's Jeffrey Siow

He says PSP's proposal not a practical solution as it would hurt businesses

- Osmond Chia

Calls by the PSP for Singapore to have a minimum monthly wage of $2,250 are more a political than a practical solution, candidates from the PAP's Chua Chu Kang GRC said on April 25.

Instead of a universal minimum wage, the PAP Government's approach is much more precise and aimed at sectors where workers need to be uplifted, said Mr Jeffrey Siow, who was formerly permanent secretary at the trade and industry and manpower ministries.

Manpower Minister Tan See Leng also said on April 25 that there is no straightforward solution to lifting wages for lower-income workers, and the Progressive Wage Model (PWM) has worked as it is a collaborative effort that involves the tripartite partners: employers, unions and the Government.

During a walkabout at Chua Chu Kang's Brickland ward, Mr Siow responded to proposals put up by his PSP opponents, including Mr Lawrence Pek, for a universal minimum wage.

Mr Siow, who is contesting his first general election, said such a policy has only two outcomes.

If the bar is set below the current market wage, then there is no actual impact and is "just a political announcement". But if it is higher than the market wage, it would force wages at the bottom up, and there would be additional costs that businesses would have to bear.

Mr Siow said Mr Pek's views on a minimum wage are "curious", given that Mr Pek was previously the secretary-general of the Singapore Manufacturing Federation, which advocates for manufacturing firms here.

"He appears to be pro-business and to be pro-minimum wage; I don't know if that squares," he said.