Thursday, August 11, 2011

Paradox of Singapore: no minimum wage!

1. Singapore is an expensive place to shop if you are familiar with the states. $35 sketchers shoes at the US outlets are sold for $90 in Singapore--and the list goes on.

2. Food is cheap; so is renting a cab.

3. Both renting and owning space is expensive. One reason for high prices has to do with this.

4. Of 5 million population, there are about 900,000 lower-skilled foreign workers in Singapore, and about 150,000 skilled workers. I know one Indian, who worked in singapore for S$550 a month. An illegal amigo can make more than that in the states.

5. Government-linked corporations (GLC) control the 60 percent of the singaporean economy.

Why Singapore resists minimum wage?

My hypothesis is simple: implementing minimum wage eats into the profits of both GLCs and other parasites that run the remaining 40 % economy, if there is no control over the real estate.

What are the options?

(a) Regulate the rentals of office and shopping space
(b) cut down the profits
(c) suck the blood outta desperate workers coming from India, Myanmar, Philippines, etc and, of course, legally!

With both (a) and (b), Temesek holdings, Singapore sovereign fund, will loose money.

Indians, who are seeking 20,000 rupees a month in Singapore, should instead bilk the gubmint back home!

-100 days drought scheme in Andhra pays about 300*100 = Rs 30,000
- 2 Rupees rice per kilo
- become a real estate broker
- Ask for free electricity, free home, free medicare, so that the government can get loans from NABARD, IMF and World bank to fund these schemes, while at the same time your local legislator (MLA, MP) would get free land, construction/mining leases/power station/real estate/hospital ala arogya sree conracts through their holding companies from the govt.
- Start to learn how to lathe metals or buy a 3d printer, so that you can get ready when the shit hits the fan.

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