A Short Analysis Written To The Singapore Government About Restoring Payscale.
Dear Government of Singapore,
Salaries in Singapore Were Reduced To Half in 2006, in an effort to make businesses profitable on Profit & Loss Statements. The middle managements’ fear during Recession was that a Negative Business Cashflow would result in broken rice bowls for staff.
My Father’s GM General Manager’s Salary was $24K in the past — 1995; the General Manager’s Pay at CGG Veritas was cut by 33% to $16K in 2006. Two more years later in 2008, he was demoted to Marketing Manager at $8K — his watermelon salary, cut in half! Then he worked all the way to 2016 and had another Recession paycut to $6K and a job role change to Business Development Advisor.
All these demotions and paycuts are done by companies in an effort to reduce staff costs. There were around seven pay-cutting Recessions from 2006 to 2021. All companies took great liberty in cutting pay to save costs. The problem is… after Recession, there was no restoration of peoples’ salaries to full pay scale.
There was an invisible paycut of minus -30% salary to survive the Recession in 2007? Why are Singaporeans feeling the financial crunch and are struggling to make ends meet? Because… they have cut pay many times without restoring it to its full pay scale.
You must restore the salary pay scale. People are underpaid for tooooo loooong. Furthermore, most businesses have gone GA Government-Assisted Business Model to Survive.
Pay Scale to the people should be restored. The Singapore Government should Fund-Assist all businesses in paying their staffs full pay scale. Double salary is the minimum required to survive a family comfortably. Do a study, Singapore Government: See how many times pay has been cut and then see whether pay scale has been restored. I tell you… people are receiving only around 30% of what they should be getting to live comfortably.
Why Don’t Be Afraid To Pay The Population
If you double peoples’ salaries, they spend their money at your Nation’s businesses. Money flows from the peoples’ expenditures back into the businesses’ bank accounts. Usually business profit returns are 25 to 100 times the cost of the product. When businesses pay $2 for an item, they sell it for $50. Business profit on the sale is $48. Businesses earn the populations’ money back at a leveraged amount. No matter what you pay the people, the money just flows back into the businesses’ bank accounts.
Singapore suffers from an ageing population and a lack of cash for sustenance. To keep the population affluent and to keep the economy flowing, restore the recession pay scale back to 100% — use statutory money rights.
How Much Do Money Do We Need?
Double Salary is the minimum that Singaporeans need to cover family costs. Do a study. Case Study: Two working parents supporting 12 family members.
12 Family Members To Support On A Dual Income of $5.6K. Only two adults working. Parents and Grandparents are retired.
Dual Income Family:
Husband: Supervisor $3K (Warehousing)
Wife: Sales Assistant $2.6K (Supermarket)
12 Family Members Surviving On $5.6K
|My Own Grand Father & Grandmother||Grand In-Laws: Her Grandfather & Grandmother|
|My Father & Mother||Parents In-Law: Her Father & Mother|
|My Wife & Myself||Utility Bills, Food, Education, Transportation; Medical Care|
|Our Two Children:
Boyboy & Ah Girl
|Total: 12 Family Members and a bank balance that is dropping every month.|
Conclusion: “Money No Enough!” At minimum… double the salaries to cover family costs comfortably. Double Salary: $5.6K x 2 = $10.6K can cover 12 family members well.
Three Actions To Consider:
- Government Mandate to businesses to double salaries — Restoring Singapore Payscale to 100%.
- GA Government-Assisted Business Support for all businesses big and small. (Mine included. :p I am self-employed.) In other words, Government-fund the businesses so that they can pay their staffs full pay scale.
- Old people who are retired should be given Staple Citizen Credits or Pensions to cover living costs like basic necessities. Bad situation: Old with no income and having no offspring.
These are the struggles of the people I know from helping many through my Angel Consultation sessions. Please consider these truths, Singapore Government. The People Thank You!
Conclusion: During Recessions, companies execute their own paycuts to save money to survive. After Recession, they neglect to restore salary pay scales. The people are suffering from a lack of sustenance because of ruthless pay-cutting and retrenchment without pay scale restoration. This behaviour was evident in several world recessions already. Government Fiscal Stimulus is required to restore pay scale.
Appendix A: Recession Paycuts 2006 – 2009 (hyperlink)
Appendix B: Covid-19 Recession Paycuts 2020 (hyperlink)