Singaporean Wonders: What Would a Universal Minimum Wage Mean for Our Cost of Living?

SINGAPORE – A recent Reddit post has stirred debate on the implications of a universal minimum wage in Singapore, following a report from the Lee Kuan Yew School of Public Policy recommending a monthly minimum wage of $2,906 for specific job sectors. The Redditor raised several questions about the economic ripple effects this proposed wage might have.

“With the recent recommendation to set a minimum wage of $2,906 across all job sectors, how would this impact the cost of our goods?” the user asked. Delving deeper, they questioned if such a wage could lead people to forego higher education or positively influence the wages of diploma holders and above. They also wondered about its effects on everyday expenses, particularly on local food options like hawker fare.

The user sought clarification on the term “livable wage,” noting that the 2023 report revised this figure to $2,990 to account for inflation. “Please correct me if ‘livable wage’ is different from ‘minimum wage,’” they wrote.

Reddit user Inner-Patience pointed out, “Nowhere in the paper does it mandate a minimum wage of $2,906.” Other users highlighted potential drawbacks, with DuhMightyBeanz commenting, “This would never happen in Singapore due to the cost burden on businesses.” Another commenter noted that a minimum wage might lead to fewer households hiring helpers, while DuePomegranate expressed concern about inflation, suggesting, “A $2,906 minimum could lead to at least 50% inflation in a year.”

In response to concerns, Singapore’s Finance, Manpower, and Social and Family Development Ministries clarified on September 14 that the report’s income standard may reflect desired rather than essential living standards. They pointed out that the suggested budget included items like jewelry and overseas vacations, and emphasized their focus on sustainable wage increases for lower-income workers through the Progressive Wage Model (PWM). The PWM aims to raise wages in sectors like retail, food services, and waste management as workers upskill and improve productivity. From 2023 to 2028, wages in certain sectors are set to rise significantly, with retail and cleaning jobs expected to see an increase of over 8% and 10% annually, respectively.

This discussion has left Singaporeans pondering: could a universal minimum wage support basic living standards, or would it disrupt the current economic balance?