The Hard Question about putting Singaporeans First

This is something TOC, TRE and other anti-PAP new media outlets will never dare say.

Are we happy to pay more for goods and services if we try to only employ S’poreans? Because taz the Hard Truth consequence of paying S’poreans to do work that FTs do. Luckily for bleeding heart “progressives” who benefit from the lower prices that come from FT labour, this Hard Choice is made by the PAP administration who love FTs. The ang moh tua kees can feel good about calling for “S’poreans First” happily knowing that they won’t be given the choice of having it.

Here’s something from America from NYT. The employer’s tots are the tots of S’pore employers.

If you can’t get workers at $17 an hour, why don’t you offer higher pay?

In response to …, I got an email that said if we were to offer $35 an hour with health care benefits, we would definitely get people to apply; it said people who were highly qualified applicants with years of experience would probably line up at our door.

My response is: We would love to be able to offer $35 an hour as starting pay, but are you in turn willing to pay premium prices for your next roof replacement? A lot of customers we get through online lead services likeThumbtack are people looking for the best deal. They want to collect proposals from four to five businesses and most of the time choose the cheapest one.

We want to compensate our employees fairly for the work they do and the risk they take, but we wouldn’t be able to stay in business if we doubled the hourly rate. It’s not just their hourly wage that becomes a factor. Insurance in the roofing industry is extremely expensive. Not only are we required to carry expensive general liability insurance, we also have to have workers’ compensation insurance for employees on the roof. That comes to 40 percent of their wage. And on top of that, there’s payroll tax.

 

 

Cynical Investor

Cynical Investor blogs at Thoughts of a Cynical Investor.

 

 

 

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30 Responses to “The Hard Question about putting Singaporeans First”

  • NotMyProblem:

    Malaysia’s goods and services are cheaper than Singapore. Malaysia doesn’t have too many FTs!!

    Malaysians are still employed by Malaysians.

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  • Cecil Chua:

    There are ways of reducing the cost of Singaporeans without hiring foreigners:

    1- abolish or reduce NS and reservist. Reservist is effectively 1/12th of the NSman’s income the employer pays for that benefits the Gahmen, not the employer or NSman.
    2- abolish CPF. Gahmen admits it isn’t enough for retirement anyway. This will reduce the labor cost by what 25%?
    3- eliminate ERP charges- this will reduce the cost of transport for labor which will make the labor market more mobile, hence reducing the cost of labor.
    4- make the public transport more reliable. See 3.
    5- eliminate the requirement for an MC for sick leave. The MC requirement increases labor and admin cost by requiring a doctor’s visit. I don’t need an MC here in NZ.
    6- institute mandatory maximum 40 hour work weeks except for emergencies. Long hours create the illusion of productivity. In fact, working less produces more http://www.cnbc.com/2015/01/26/working-more-than-50-hours-makes-you-less-productive.html.

    I’m sure others can think of other ways.

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  • Amos humiliate L*L and PAP:

    CI showing his stupidity again.

    He assumes without basis that employing Singaporeans instead of FTs would only lead to higher prices. Not true. Prices can remain unchanged with employers making less profit.

    Also stupid to compare with US. US has minimum wage (Singapore does not) and yet cost of living in US is still much lower than Singapore.

    “Cheap” FTs depress local wages and their demand causes a sharp rise in prices.

    “Cheap” FTs is also the reason why productivity (and therefore wages) remains low in Singapore.

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  • Ah Fah:

    Uncle, FTs don’t have a half-a-lifelong housing loan to pay.

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  • flabbergasted:

    the problem here is foreign trash are paid higher than locals in jobs that locals want!

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  • opposition dude:

    Well we have quite a number of people who earn under $2500 a month BUT we have a high cost of living. Doesn’t make sense does it, Cynical?

    Uncle, please wake up. We are being paid lousily and yet the cost of living here is so damn high. Everyone knows that. From 25 year BTO loans to COEs you tell us all what is low?

    Salary is the only component that an employer can control. After high Reit rents and all other expenses what do you think? Why was this conveniently left out of your article and all you say is higher costs if higher salaries were paid out hmm?

    So now you see why PAP needs to flood the place with super low cost non Singaporeans or not? Or are you still, as usual, pretending to not know the stark reality and like PAP, prefer to try and address an issue with your own set viewpoint and narrative?

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  • Cheapo Infestor:

    Please, FFS, God give you a brain. Make good use of it!

    If there’s no cheap FT labour, would there be cheap cheap prices to compare? Which business can afford to quote much cheaper prices? If local workers are paid reasonably good pay, they in turn have higher buying power.

    If a country wants to progress, stop being cheapos and hire all the cheap labour.

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  • Amos humiliate L*L and PAP:

    PAP wants FTs in Singapore to fix the problem of low birth rate caused by the adverse impact of PAP policies and decisions. The sure way to get them to come to Singapore is to give them the jobs of Singaporeans. To facilitate this FTs are exempted from CPF making them significantly cheaper to hire than Singaporeans. Also, employers like FTs because they have no disruptive NS reservist training.

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  • Realistic Pay:

    If you pay Singaporeans realistically, I am sure there are more than enough takers.

    With automation, mechanisation, productivity and what have you, the operating cost will be reasonable. Even if prices are higher it would not be at premium.

    The whole trouble with this current situation is that rental is the killer and I don’t need to elaborate who is the culprit that started this chain effect.

    So don’t blame Singaporeans for not taking up jobs considering CPF contributions, HDB mortgages, etc and what is left of the take home pay.

    That’s the reason why importing trashes will never end.

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  • justtryingtobefair:

    If America deports all illegal immigrants, and $35 per hour is the going rate for American roofers, that would be standardized across the industry. Consumers wanting “the best deal” would have no choice but to pay more.

    The takeaway is, market forces cannot price labor correctly if foreigners depress wages.

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  • Talking Cock:

    We are willing to pay for higher prices if our salary have been adjusted proportionately. Pinky ever mentioned that business owners will suffer if salaries increase. Looks like Pinky cares more for the business owners than the ordinary people.

    What about the million dollar salaries of top civil servants and Ministers ? An MP used to draw S$500 per month. Now they are drawing S$16,000 per month for doing the same job part time. Perhaps the Minister salaries are for adjusting to the cost of living in Singapore. What about the ordinary people cost of licing ? Is it you die your business ?

    Foreigners can accept low pay because of exchange rate eg Filipinos work one month salary in Singapore which is equal to five month salary in the Philippines. Their cost of living is much more lower. Have checked with Filipino salesgirl and they mentioned they spent their money on shared rental, handphone charges, self cooked cheap food. The rest of money sent back to their bank in their country.

    Indeed Singapore is a land of opportunity and gold mine for these foreigners.

    The basic problem is that our business owners are too greedy. Making lesser profit is not in their DNA.

    Why should we give employment to foreign citizens ? Will President Duterte, PM Razak, President Xi and other leaders offer jobs to Singaporean (if currency is equal) if we are unemployed ? Only our foolish PM will do the unthinkable.

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  • UNable To Deliver:

    Top Civil Servant and Minister have all been paid unrealistic high pay for doing fiack off.

    Example

    1) Getting 1 to 2 million salary still cannot solve MRT problems. Why?

    2) Setting Up tents in hospital carpark as wards because of shortage of beds. They were not able to forecast or anticipate this problem but keep on allowing large numbers of foreign workers into the island .

    3) Increasing water by 30 per cent because water is a precious resource. You mean now you realise it. Again the paper scholars cannot anticipate this problem. Foreigners also drink, bathe and use the water. Why make the ordinary people pay for their mistake ?

    There were many other instances where they cannot perform efficiently. If LKY is around all of these people would have been given the walking sticks. Pinky is too soft.

    In fact all the top civil servant and Ministers should return 70 per cent of their salaries as they were not able to deliver the result.

    These young scholar Ministers cannot compare to LKY and his old Ministers.

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  • rukidding:

    Why am I not surprise that this article comes from Cynical ?

    Basic rubbish indeed !

    If you as Government is sincere enuff,…there are other ways of “reducing cost”…ie rental, electric tariff, tax rebate ,low work permit fee…etc.

    The trouble is …this Government is “insincere”…they only want to “win” and never even consider “break even” as option.

    Thats why, rentals , tariffs …all remain high…so high that the only way employer can survive is to “cut cost and eat into lower salary, stagnate salary or cheaper labour”.

    Pap “preaches”…cheaper, better, faster….but is that really true ?

    Pap “preaches” that foreigners ,some with fake or half pass six standard are considered “talent”…but is that really true ?

    Isn’t it obvious that we now seem “regressing backwards” ?

    Hey !…but look at those Bosse”s Profits and look at Pap Salaries ?….why are they “getting bigger and fatter” ?

    Now,….do you really believe the slogan ” With You, for You” ???

    Maybe , when you sit back and analyze further….you may just ask that question,….is Pap “really working for your interest” ?

    Or are they working for their own “Small 30% Elitist Group” benefits and Power and wealth ,….slowly “replacing and drowning off those kpkbs voices of the Middle and lower true blues” and “replacing the Vote Balance Power to “always tipped” towards their advantage by “using the influence” of New Citizens and “foreigners who were funded by our $$$ in furthering their education” here…and their New Citizenship ????

    Sit down and think deeper and you will soon realised how oldfart “screwed” you people without you people realising.

    That is also why he called you “Daft” !

    Short of an “Upheavel” and “revolution”….the uture of Middle and lower class True blues …..looks “bleak” indeed !

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  • LIONS:

    there should be NO QUESTION AT ALL THAT SGS MUST COME FIRST.
    ELSE,WHY CALL THIS COUNTRY SINGAPORE N NOT INDIANPORE OR CHINAPORE OR PEEPORE???

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  • AiYoYo:

    “Are we happy to pay more for goods and services if we try to only employ S’poreans?”

    If Singaporeans don’t have jobs, it doesn’t matter what the GST is because Singaporeans will not be able to afford it. So yes, we are willing to pay more for GST if it gives Singaporeans jobs.

    Now people who make the argument that if Singaporean’s get the jobs the GST will go up will NEVER say that if Singaporean’s don’t get the jobs, the GST will stay down. Often times there will be some excuse about the need to raise GST. So if the GST is going up anyway, all the more reason for Singaporeans to get the job.

    The social compact that people have with their leaders is not to have low GST but to have jobs.

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  • Amos defeated Lee empire:

    SIngaporeans are foreigners while malaysians, pinoys and others are locals ..

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  • Rabble-rouser:

    Trust the Cynical one to come up with an idiotic example just to justify his weak & pathetic argument. Don’t know why TRE continues to publish his PAP-slanted articles. Maybe it’s to highlight his poor logic; pseudo-intellect that impress no one; convoluted writing style that obfuscate & pathetic reasoning that fails to convince for the whole world to see.
    His arguments are full of holes – you just don’t know where to start!
    First off, there is no wage disparity between local S’poreans & foreigners. The only deal breaker is that locals /employers have to contribute to CPF whereas foreigners do not.
    Secondly, foreigners are ‘indentured’ by the S-pass, employment pass et al to their employers. There is little freedom to change employers. That’s why employers prefer foreigners. Can get them to work like a dog without complaints.
    Thirdly, S’pore’s high cost of living has nothing to do with wage cost. It is the rent-seeking part of the economy ie. high rental cost.
    Comparison between S’pore & the US is like comparing a cheap seedless rambutan to a priceless Avocado. The US citizen have more rights in the workplace than pathetic S’poreans who had their workplace rights taken away by the PAP & totally marginalized in a pro-employer eco-system. Auntie Lucy is a pathetic pseudo-union in S’pore who sides with the employer against workers.
    In addition, the US worker have welfare system to assist them like food stamps & social payments. What do S’pore workers have – is the PAP telling you – “you die is your own business!”
    Even the standard of living can’t be compare between S’pore & the US. Cars & price of gasoline (petrol) is so much cheaper in the US. Food is so abundant in urban centers in the US. Been there, food is so much cheaper than in S’pore. Electronics goods are so cheap – a good branded 10 inch Android tablet costs about US$80. Where to find in S’pore?
    Of course the cost of living is high in the US – wages need to be high because the standard of living expectations are high with the US citizens.
    Unlike S’pore where the cost of living is high but the standard of living is low because the S’pore economy depends on masses of 3rd world labour to work the economy. The standard of living expectations are low because the PAP have been talking down to the people to re-adjust their expectation downwards – using fear mongering of foreigners stealing their lunch. That CI can’t even understand – what is he good for? Other than farking nonsense!

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  • Taleban:

    Please do not dump all foreign workers as FT.
    FT= work permit holders + employment pass holders + PR.
    We have no problem with work permit holders. We need them to do the works Singaporean are too qualified to do.
    Employment Pass holders and PRs are the one that are stealing the lunches of Singaporean.

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  • oxygen:

    CI, THIS MUST BE AMONG THE DUMBEST ECONOMIC LECTURE or fable I get to hear or read.

    The car, COE, imprisoned CPF and roof over the head costs – a direct results of overpopulation – have long eaten out the illusory gain from “cheaper” foreign labor. A primary school kid would know of these facts.

    Better you write some dumb law topics to con gullible peasants than dumb economics that fools no one.

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  • Nizhemoshou:

    DID hiring all the cheapo 3rd world foreign trashes bring down prices of goods n service in SG ?

    No . the benefits of lower wages did not pass down to consumers but went to increase profits of the govt owned and pap cronies businesses.
    Even allowing pap govt to keep hiking prices higher n higher for no rhyme n reason but with plenty of flimsy excuses till SG is now a terribly expensive city in the world.

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  • CI's voodoo economic mind:

    Australia pays its construction workers and waiters and indeed all workers Australian wages, not Bangladeshi or Filipino wages, for their leaders are talented enough (unlike Singapore’s leaders) to maintain an economy that can enable Australians to earn enough to pay for them.

    Ditto for Japan, S. Korea, Hong Kong, Taiwan, Malaysia, Thailand, etc.

    Not Singapore. The PAP leaders are not able to generate an economy to pay Singapore wages, but cheaper Third World wages, and our purchasing power that puts us in the Third World league.

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  • Mainstreet Citizen:

    Having some foreigners to do some jobs is one thing but having foreigners that’s half the population of a country (which other country has this distinction?) is of grave concerns. Any policy to the extreme is dangerous!
    The first generation government certainly did not have such large percentage of foreign workers here yet things were certainly much more affordable. Government of today under the current leedership surrounded by parrots and yes-men is a pale shadow of the first generation government.

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  • Anon:

    @Rabble-rouser:

    I am convinced TRE is somehow beholden to CI so that.they are regularly expected to publish his trite, apparently ‘clever, clever’ observations. Any fool knows if you ask employers or those rooting for them, they will invariably warn if apparently adverse consequences, in this case employing supposedly more costly locals. The prople who dare not ask these questions that CI supposedly pose, are the Employers,not the ordinary man in the street. It is self-evident that they have to do this to protect their profiteering. How else can they get rich quick if not by fleecing those they can take advantage of. No! The reason for insisting on employing locals is to force something called ‘productivity improvement’ which has been in decline in Singapore precisely because of readily available cheap imported labour.

    Well, govt policies are not just about making life rosy for employers, but also about improving the lot of the common man in the street. That is why a cleaner at Zurich airport with his highly automated cleaning machine can do the work of many ordinary cleaners and get paid 35000 Swiss schillings a month so that he can live reasonably. It cist the company to invest in technology, it reduces the need for mass cheap labour and makes the country’s population more manageable. That is why employers must be encouraged, nay cajoled into employing their own countrymen in the first instance. Of course this does not mean exceptional talent from outside should be shunned, but that should be very very selective.

    I have lived in UK, travelled in the developed world extensively, interacted with the best at major international conferences. There is nothing exceptional about Caucasians, Indians etc that outshines a dedicated Singaporean. Singapore certainly has its own share of high quality individuals like Lim Tean and I am sure many more. Employing them first is giving them the opportunity to show how good they can be. Thirty years ago, there were many more prominent Singaporeans groomed into high profile positions through the systems. Today there is more parachuting because of the pressure to deliver short term and look good. This is a vicious cycle that breeds negative unintended consequences

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  • A Nation Of Dumb Parrots:

    oxygen:
    CI, THIS MUST BE AMONG THE DUMBEST ECONOMIC LECTURE or fable I get to hear or read.

    The car, COE, imprisoned CPF and roof over the head costs – a direct results of overpopulation – have long eaten out the illusory gain from “cheaper” foreign labor. A primary school kid would know of these facts.

    Better you write some dumb law topics to con gullible peasants than dumb economics that fools no one.

    This is the job of a dumb IB.

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  • PAP has the mandate:

    Quality products are universally priced and even there is a discount pending on country to country it will not be a fire sale. Stinkapore getting cheap food and cheap products because they are inferiors, knock off and contaminated.

    If a person wanted quality, you have to pay unlike million dollars PAP clowns got paid million of dollars and yet can’t do a thing…LOL

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  • Rabble-rouser:

    @ Anon:
    What I’m peeved about are those Pseudo-intellects {sic: CI] who sprout empty intellectual nonsense using simple comparative models without understanding they’re not really an apple-to-apple comparison.
    S’poreans are still relatively sheltered [cocooned?] from the real world – many in S’pore don’t understand the principles for free speech [a check & balance]; democratic principles & values [vs unbridled authoritarism]; libertarian attitudes [vs blind conservative attitudes which hinder societal progress]; social welfarism/economic trade-offs [vs a widening GINI gap]; social free goods/general societal uplifting [vs PAP social engineering/user pay attitude/artificial class barriers re: Meritocracy] & the polity/ economic equation [national identity vs natural aristocracy]. And these are the problems I see in S’pore under the PAP political scheme of things.
    Sad to say this, PAP had effectively indoctrinated & blinked a generation of people who can’t ‘see’ the real world but live in an insular eco-system that is surreal & dysfunctional. Stockholm Syndrome comes to mind!
    It takes a level of living abroad for some time & travelling extensively to understand different cultures, different polity & the resulting different mindsets from this global community. There aren’t many clear-cut similarities in the world to compare – countries are formed individually through their own distinct culture, their history & especially from their own economic development. Every country has their own pros-&-cons – there isn’t an Utopia society on earth.
    S’pore under the PAP is utterly materialistic-&-monetary bound model. Every thing is simply calculated under $$$ & Cents with the PAP coming out on top. The PAP economic model is unraveling because the Knowledge Economy is about “Out-of the Box” thinking & opportunistic entrepreneurship. Their $$$ & cents approach can’t work because they regards intellectual capability as mere ‘digits’ & must be put to work under their mechanism for the good of the State. But the rewards accrued to the Natural Political Elites. Whose so stupid to do that?

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  • Disappointed:

    Some Singaporeans complain about depressed wages but are unwilling to do extra work or work longer hours,resulting in employers hiring FTs instead. If we don’t employ FTs at all or give priority to Singaporeans,the country will collapse. Look at SIA and the FT crew. Did you know some of those appearing in their advertisements are also FT? There are other industries experiencing something similar.

    There are jobs that require certain skills which Singaporeans don’t have because our education system doesn’t facilitate that. We produce robots that cannot think outside the box.Even the one making the furniture are Malaysians because the Singaporean furniture seller cannot find Singaporeans with that kind of skill. We need FTs whether we want to admit it or not.

    While PAP is right to bring in many FTs and sometimes favouring them more than Singaporeans, they are also at fault for not ensuring our education system can cope with the demands of today’s rapidly changing economy. They must tell us how they plan to address this or risk seeing more Singaporeans fall behind. We don’t want our children and their children to end up becoming slaves in their own country.

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  • oxygen:

    @ Disappointed

    GLCs are endangered species protected by PAPpy bureaucratic arm-twisting of private sector business entrepreneurial ship. Off course, PAPpy has NEVER and WILL NEVER admits to this fact. The entrepreneurs in the 1970s and 1980s who ventured out know how government organs and legal structures protects their territories in the home grounds. Any blind fool can see POSB opened branches like coffee shops while other banks face restrictions on new branch openings as example. Deposit interest on savings a/c in POSB is tax-exempted but interest income from other banks are taxable. That is how POSB grew up so fast of its asset/capital base. There are other rules stifling the development of services like education business – only “approved” institutions can offer Skills Development Fund-sponsored courses in which students paid only 10% of tuition fees but students studying course in other private schools have to pay full fees. There are other arm-twisting rules hampering private sector business development. The baby-boomer generations who ventured out knows the wicked dark truths of impediments hampering the development of healthy private business.

    So for 50 years, Sinkieland was an employed economy (working for foreign investors) rather than an employing economy (home grown enterprises slowly spreading tentacles. The mollycoddled GLCs could NOT even fart a sound outside Sinkieland. Remember in mid 1980s, PAST TENSE gave a “professorial economic lecture” on NDP at the former National Theatre telling Sinkies that ship-repair and marine industry were sunset industry. But he was dead wrong. We got a thriving marine and ship repair sector prior to the last GFC. See the PAPpy fatalistic mindset on economics right from independence – cultivate the unsurvivable in global competition and stifling the incubation of green shoots of private sector development, By the 1990s, PAPpys floated and unload majority shareholdings in GLCs – this is their BEST ACHIEVEMENTS they can manage. What can’t grow, list them and sell stakes and CPF member bought into such “quality trustee stocks” like a bunch of idiots got their CPF saving sucked into PAPpy asset enhancement politics via the CPF investment scheme.

    Scheming indeed.

    PAPpys are damned lousy asset builders – even worst asset traders but only good at conning peasants to part with their CPF/cash into supporting dead end GLCs.

    So what future we got now other them employing cheaper foreigners to keep GLCs from sinking into extinction?

    And the daft 70% still refusing to wake up. The enslavement of their children is well-deserved for the stupidity of greed succumbing to temptations of election lolly baiting.

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  • Rabble-rouser:

    Disappointed: Some Singaporeans complain about depressed wages but are unwilling to do extra work or work longer hours,resulting in employers hiring FTs instead. If we don’t employ FTs at all or give priority to Singaporeans,the country will collapse.

    Rabble-rouser: Of course the cost of living is high in the US – wages need to be high because the standard of living expectations are high with the US citizens.
    Unlike S’pore where the cost of living is high but the standard of living is low because the S’pore economy depends on masses of 3rd world labour to work
    the economy. The standard of living expectations are low because the PAP have been talking down to the people to re-adjust their expectation downwards – using fear mongering of foreigners stealing their lunch.

    Rabble-rouser: Sad to say this, PAP had effectively indoctrinated & blinked a generation of people who can’t ‘see’ the real world but live in an insular eco-system that is surreal & dysfunctional. Stockholm Syndrome comes to mind!

    @ Disappointed:
    You’re too indoctrinated & blinkered to see the truth. The FT influx is done by the PAP purely to grow the S’pore GDP through housing demand (BRICKS ‘N MORTAR – I as in Real Estate Investment); to drive the EAT ‘N SHIT ECONOMY (C [as in Consumption] & I [as in Investments in REITs & Property Trust] in the GDP calculation. The PAP couldn’t be bothered with inculcating the S’pore National Identity by giving local preference because S’pore is a Political Economy & the real beneficiaries of the Economy are the Political Elites. The rest – as PAP would say to them – “You die is your business”; & “No one owes you a living”.

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  • Ignored peasant:

    I’m just waiting for Zorro to say something brilliant.

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