Lawrence Pek says PWM outdated and 'exclusionary', defends minimum wage proposal

The time is right for Singapore to legislate a minimum wage for local workers as economic conditions have "changed dramatically" since the Progressive Wage Model (PWM) was introduced in 2012, PSP candidate Lawrence Pek said on April 26.

- Osmond Chia

Mr Pek, a candidate for Chua Chu Kang GRC, also refuted his PAP opponent Jeffrey Siow's characterisation of a minimum wage as a "political tool", rather than a practical solution for raising wages at the bottom.

At a walkabout in Teck Whye, Mr Pek said the PWM was implemented at a time when automation and digitalisation were nascent. But today, robotic servers have become common, and companies such as McDonald's no longer want their staff to take orders.

"We have macroeconomic situations that did not exist 13 years ago when the PWM was envisioned and implemented. It was relevant then, but not now," said Mr Pek, who was formerly secretary-general of the Singapore Manufacturing Federation (SMF).

The PWM sets wage ladders for certain sectors, such as security, cleaning and landscaping, among others, so that workers can earn more with better skills and higher productivity.