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Universal minimum wage will scare businesses amid economic uncertainty, says Tan See Leng

The Straits Times

|

May 01, 2025

Now is not the time to introduce a universal minimum wage policy as it will risk driving businesses away amid economic uncertainty in the light of the US tariffs, said Manpower Minister Tan See Leng on April 30.

- Osmond Chia

Universal minimum wage will scare businesses amid economic uncertainty, says Tan See Leng

"Currently, what is most important is to make sure that we are able to ensure that... our workers continue to have gainful, meaningful employment opportunities," Dr Tan said during a walkabout in Chua Chu Kang GRC, which he is contesting.

"We think there's a storm that lies ahead, and whatever study that people propose, there is a timing for everything," added the anchor minister for the PAP team.

Dr Tan was responding to calls for a universal minimum wage policy made by the opposition PSP on the campaign trail.

The PSP, which is running against Dr Tan's PAP team in the group representation constituency, has suggested setting a minimum monthly wage of $2,250 to help Singaporean workers cope with rising living costs.

One of the PSP's candidates for Chua Chu Kang GRC, Mr Lawrence Pek, has criticised the Government's current wage policies as outdated, and urged a review of the feasibility of implementing a universal minimum wage. Mr Pek was the former secretary-general of the Singapore Manufacturing Federation (SMF).

"Businesses are finding it very hard-pressed, particularly with the uncertain economy, (to move) forward because of the tariff war," said Dr Tan, speaking to reporters on the sidelines of a walkabout at Lot One. "Now, if you impose anything, I think you're going to really scare a lot of the businesses away."

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