Forum: Two ways to help the lower-income amid high inflation

I am deeply troubled by the high inflation rate, as this will have a great impact on those who struggle to make ends meet.

We should explore how we can help to lift these lower-income families to a more comfortable living standard.

First, lower-income workers should get higher salary increments.

A 3 per cent annual increment is very different in actual dollar terms for a coffee shop worker earning about $1,300 a month, and a mid-level manager earning about $8,000, for example.

Second, the foreign worker levies collected from employers of work pass holders should be used partly to subsidise low-salaried Singaporeans.

The amount of subsidy could be proportional to the foreign worker quota in that sector.

By doing so, the employer would hire a Singaporean at a lower cost than a foreigner, but the Singaporean worker would receive higher income than the foreigner.

Psychologically, resentment towards foreign workers would be very much reduced because the Singaporean worker knows part of his salary is subsidised by foreign worker levies.

Lim Chek Chee

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