MINIMUM WAGE LEVEL

Mr Ang Nam Piau asked the Minister for Labour whether the Government intends to impose a minimum wage level for Singapore workers.

The Minister for Labour (Mr Ong Pang Boon): Mr Speaker, Sir, the Government does not intend to impose a minimum wage level.

A minimum wage policy is unnecessary in the Republic. Such a policy is normally introduced to ensure that workers have a sufficient wage to meet basic needs and to protect those in weak bargaining positions. As hon. Members know, our workers enjoy a good standard of living and their basic needs are more than met. Besides, the State provides them with good subsidised social services like housing, education and health services.

Furthermore, our expanding economy is experiencing full employment and occasionally even labour shortages. There is, therefore, no difficulty in securing jobs with reasonable wages, Those who feel that they are being exploited can easily find alternative employment. The need for a minimum wage is also made less relevant by the higher wage and higher productivity policies we have just adopted to restructure our economy.

Market forces should be allowed to determine the wages of workers to ensure the most efficient allocation of labour. In a full employment and labour shortage situation, this will not affect adversely workers' bargaining positions or their ability to secure decent wages.

It is Government's policy, therefore, to work towards the free play of market forces in the determination of wages. In its press statement on the NWC recommendations for 1979, my Ministry has said that the NWC must take greater account of market forces in the formulation of wage increase guidelines. The NWC shall work towards a situation where employers and unions can be left to negotiate wage increases entirely on their own. The imposition of a minimum wage level for Singapore workers would be contrary to this policy.