Touted as a purely Singaporean Wage Model by Minister Lim Swee Say, the PAP is full of gusto that they have found the perfect remedy to the predicament of the underclass. But few would argue that businesses are the eventual beneficiaries from this exercise.
As the saying goes, the devil is in the detail. How are companies going to be reimbursed? Would bosses pass on the savings to their employers if the money goes to them automatically? There are some ethical issues in this.
However, some say that this would benefit the middle class the most. As Minister Chan Chun Sing has said, this scheme is designed to address the wage disparity of the middle class.
This scheme will be effective immediately and will run for three years till 2015. It will cost the government S$3.6 billion over the next three years.
The government wants to make the reimbursement as seamless as possible; companies will receive the monies automatically at the end of the year.
At the end of the day, it is uncertain if the wage credit scheme will benefit the workers. However, we’ll know it at the end of 2015.