Average income of low-wage workers up over past two years

Average income of low-wage workers up over past two years

By Hoe Yeen Nie,

SINGAPORE: Low-wage workers, who form 20 per cent of the workforce in Singapore, are earning more now compared to what they did in 2006.

For instance, workers who earned about S$1,200 have seen wages rise by 9 per cent, according to the latest government report.

But as the economy worsens, bigger challenges lie ahead.

Zalina Abdul Gani is one worker who has benefited from various government schemes designed to give low-wage employees a leg-up.

She took a course with the Workforce Development Agency (WDA) and with the help of her local community development council, found a job as a kitchen helper at a sushi chain.

“I was working full-time at Hei Sushi, but because of the recession, I switched to part-time. I accept it – it’s better than not having any job, or being retrenched,” Madam Zalina said.

In a progress report on low-wage workers, those who earned a monthly wage of S$1,200 in 2006 saw their salary go up to S$1,310 last year.

The number of low-wage workers – defined as those who earned S$1,200 or less in gross monthly income – has also gone down.

For instance, the number of low-income employees has fallen from 360,000 in 2006 to 300,000 in 2008. The income gap also narrowed in 2008 – the first such decline in a decade.

But those were the boom years. With Singapore stuck in a deepening recession and retrenchments set to rise, the outlook for low-wage workers is not great.

From 2006 to 2008, the government spent over S$1.1 billion to help low-wage Singaporeans. It is presently reviewing its programmes, such as the Workfare Income Supplement scheme, to see what else it can do.

Manpower Minister Gan Kim Yong said: “This economic downturn will affect Singaporeans across the board, whichever wage category you’re in. But we’ll continue to monitor and help the low-wage workers.

“For those who’ve tried very hard and yet are unable to find a job for a variety of reasons, there will still be help schemes under the normal Comcare Fund, which the MPs and the community administer. They can approach their MPs for help, specifically if they have financial difficulties.”

At a dialogue session with Tanjong Pagar GRC residents on Sunday, the issue of foreign workers and foreign talent came up again, with many expressing concerns over what they saw as unfair competition.

“Singaporeans are affected. Some of them have lost their jobs and rightly or wrongly, they think the foreigners are taking away their jobs. I think we can understand and empathise with the feelings,” said Mr Gan.

“To keep the foreigners out may be very appealing to the locals, but it may not be the right approach for Singapore in the long term because it will then undermine the basic economic fundamentals. And if we do so, it will affect our long-term economic position.”

The manpower minister added that the government will work the ground better to explain its policies, especially during the downturn, when tensions between foreigners and Singaporeans are expected to rise.

- CNA/so

Source : Channel NewsAsia - 8 June 2009

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Planned budget hotel causes a stir

Planned budget hotel causes a stir

Tiong Bahru residents worry that Hotel 81’s presence might give area a sleazy image

By Jessica Cheam

A new hotel being built by budget accommodation chain Hotel 81, in Eng Hoon Street in Tiong Bahru, has raised eyebrows of residents who are worried that it will leader to vice and other social problems. It is still unclear if the hotel will offer full-day or hourly rates. — ST PHOTO: ALBERT SIM

AN ALMOST completed, nondescript building in one corner of Singapore’s bustling Tiong Bahru estate is raising eyebrows within the community.

Several residents are concerned about the latest addition to their estate - a new hotel built by budget accommodation chain Hotel 81.

The prospect of an hourly-rate budget hotel in their estate has got them worried that the development might give a sleazy image to the neighbourhood, and depress the values of their properties.

When contacted, the Urban Redevelopment Authority (URA), which approves the use of buildings as hotels, confirmed it had ‘granted approval for a hotel development at 1-9 Eng Hoon Street’ on Sept 12 last year. ‘The proposed hotel development on the subject site is acceptable from the planning point of view as it is located in a mixed-use area where there are existing hotel developments in the vicinity,’ it said.

Although a sign proclaims the name of the hotel to be ‘Hotel 81 Osaka’, it is unclear if the hotel will be an hourly-rate one or one that charges only a full-day rate. Hotel 81 declined to comment when contacted.

The budget hotel chain has aggressively expanded in the past few years to a network of 30 hotels islandwide. Most are located in the red light district of Geylang and other areas such as Joo Chiat and Balestier. The chain has one hotel in a residential area - Hotel 81 Kovan.

Residents said they are hoping the hotel will at least be one that offers a full-day rate.

‘Short-term stays lead to other social problems,’ said resident Eugene Yip, 38, an advertising executive.

Another resident who declined to be named pointed out that there are already a growing number of female hostesses from China living in Tiong Bahru, due to the estate’s proximity to bars - such as the Tiananmen karaoke lounge - in the Havelock Road area.

‘At the moment, they live here and solicit their business elsewhere. We don’t want them to start touting for business here too. We don’t want it to go the way of Joo Chiat,’ he said, referring to the district in the east which in the past saw an influx of bars, massage parlours and prostitutes together with hourly-rate budget hotels.

Recently, The Straits Times also reported the rise of illegal dorm use in the estate, where landlords have been cashing in on the demand for cheap housing by converting conserved pre-war flats into dormitory-style housing for foreign workers, leading to concerns over noise, littering and overcrowding.

The laidback, historic charm of Tiong Bahru has in recent years attracted a growing number of young professionals and expatriates. It is gradually being gentrified. ‘Many owners have invested heavily into rejuvenating their flats, and want to keep the estate clean,’ said Knight Frank realtor Alvin Yeo.

So while mid-tier hotels, such as Link Hotel Singapore, have sprung up, residents want to know how chains like Hotel 81 get approval to set up hourly-rate hotels in residential areas.

The Singapore Tourism Board’s hospitality arm, which gives the approval for the type of hotel licence, refused to comment when contacted.

The estate, which was designed in the 1930s in the Art Deco style, was gazetted in 2003, where 20 blocks of pre-World War II flats as well as 36 units of shophouses have been conserved to keep the charm and identity of the estate.

It has even been suggested, among Singaporeans, as a nominee for Singapore’s first Unesco World Heritage Site.

Source : Straits Times - 8 June 2009

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Worst is over for economy: UOB-Kay Hian report

Worst is over for economy: UOB-Kay Hian report

Upcoming IRs expected to boost tourism, services & construction sectors

By NISHA RAMCHANDANI

THE darkest hour has passed for Singapore’s economy, says a research report by UOB-Kay Hian.

Snapshot: Tourism numbers and receipts are also expected to get a shot in the arm with the IRs coming onstream. UOB-Kay Hian reckons that tourist arrivals will post a 12% year-on-year decline in 2009 before rebounding by 20% in 2010
The 10.1 per cent contraction year-on-year in first quarter 2009 gross domestic product (GDP) was mainly due to sharp declines in the manufacturing and services sectors, it pointed out.

‘The two upcoming integrated resorts (IRs) which are scheduled to open by Q409 and Q110, will boost the services and construction sectors and may even partially cushion the economic downturn,’ the report said, adding, however, that the Singapore government does not expect the domestic economy to stage a decisive rebound this year.

According to UOB Economic-Treasury Research, Q209 and Q309 is forecasted to be in deep recession with GDP growth of -9.7 per cent to -7.5 per cent, before a ‘more meaningful recovery’ by year-end with a GDP growth of -2.6 per cent in Q409.

Tourism numbers and receipts are also expected to get a shot in the arm with the IRs coming onstream. UOB-Kay Hian reckons that tourist arrivals will post a 12 per cent year-on-year decline in 2009 before rebounding by 20 per cent in 2010.

‘A recovery in tourist arrivals will benefit service segments such as hospitality, aviation, land transport, retail and healthcare,’ the report said.

Meanwhile, Singapore’s residential property market is expected to attract foreign buyers thanks to the IRs. ‘Property developers with a high exposure to this segment will benefit,’ said the report.

Top picks in the property sector include City Developments (Target price: $10.90) and Allgreen Properties (Target price: $1.30).

Other top picks include DBS Group Holdings (Target: $13.64), Singapore Press Holdings (Target: $3.90) and SMRT Corporation (Target: $1.86).

However, it doesn’t quite look like smooth sailing for the aviation and shipping industries, UOB- Kay Hian said.

Excess capacity will continue to put pressure on yields while low cost carriers offer stiff competition to full service carriers such as Singapore Airlines (SIA).

While airlines are grounding planes, they are also expected to take delivery of new planes later in the year, which further compounds the problem.

Passenger yields are only expected to improve if premium traffic picks up. But as companies are keeping an eye on containing costs, UOB-Kay Hian reckons this is unlikely.

While SIA appears to be faring better than its competitors, it traditionally derives some 40-45 per cent of revenue from premium seats. UOB-Kay Hian has a sell on SIA, with a fair price of $9.80.

Similarly, it maintains an ‘underweight’ view of the shipping sector due to the massive oversupply of dry bulk newbuilds scheduled to hit the waters from H209.

At the same time, it maintains a ‘market weight’ view on the three Singapore-listed shipping trusts - First Ship Lease Trust, Pacific Shipping Trust and Rickmers Maritime.

Source : Business Times - 8 June 2009

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