News Highlights Monday 11 February 2008

The Business Times, P1

Singapore’s competitive edge eroding

Data released by US Department of Labour showed that Singapore’s pay hikes shot up with CPF contribution increased 17.1% to US$8.55 in 2006, bouncing back from 2.3% dip in 2005. Pay in Singapore continued to shoot up in 2007. Polls taken showed Singapore workers have enjoyed the biggest bonuses in Asia in the past 2 years, besides having pay that is higher than other emerging economies. Economists acknowledged that the jump in pay reflects the tight local labour market. Although Singapore does not compete on wage costs, the wage increase might become problematic at some point, said Robert Prior-Wandesforde, an economist at HSBC Bank.


The Straits Times

Budget to target inflation:
Economists Strong growth last year will let Govt give lower-income group more support