Are you ready for 7 million people on tiny Singapore?
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Irrelevant:
Yes, of course I am aware that SG has been hiring FWs for the longest time. What I am saying is that the gov is tightening the FW quota, increasing levy etc to push Companies to hire SCs, which theoretically is a good move. However, other operating costs such as rental and transport (COE, ERP, etc) has been increasing dramatically at the other end. And at the same time, the global economy is down, so the SMEs cannot increase their prices to stay competitive. So the SMEs cannot afford to pay more to attract SCs to join them, and yet at the same time they can't employ FWs. So they are squeezed on both ends.
You must be seriously joking lah. Where got get forced to hire FW one. Singapore manufacturers have been hiring FWs since 30 years ago! There are professional firms all over the place helping you to recruit them, Chinese, Indians, etc. Just tell them your quota. If your fren tell you never hire FW until recently, I would also like some of what he is smoking. FW are hired simply because they are cheaper and more hardworking than Singaporeans at the same price point, period. Remember we use to have many garment factories...Dora1:
Depends on what type of co. Some SME only have less than 30 pax, the rental cost can be the same as the manpower cost, esp if they need big space for machines etc.
if u look at my previous posts, I am against indiscriminately hiring foreigners. However I am also aware that a lot of SMEs are \"forced\" to hire cheap FW because of other rising cost such as rental and even COE. So dun only focus on cheap manpower, lower business cost for SMEs as well.
As for rental = labour cost, have you seen hard numbers before or not? Rental for factory is $20 per sq metre per month, give or take. If a company has 25 employees with average pay of $2,500 (including bonus, cpf, insurance, etc), total wage cost is $62,500 per month. To spend that much on rental, factory size would be like in excess of 33,000 square feet! And probably there are at lease 2 shifts working since there are BIG machines? So 12 ppl in 33,000 sqft? You can't get that kind of space ratio even in Malaysia, except maybe a logistics warehouse
So essentially what I am saying is, if they want the tightening FW policy to work, which is for companies to hire more SCs, then the gov should also watch the other operating costs. JTC selling the flatted factories to Mapletree, which sells REITs and shares and all, is encouraging inflated rentals, as Mapletree is listed and therefore their goal is to ensure that the shareholders get a good profit. The result is increased rental of >50% in the last few years. -
Dora1:
This problem is very real. There are companies and F&B outlets that are gradually being driven out due to increasing rental over the years. Otherwise viable businesses with regular customers. The worst is yet to come. Rentals - amongst all costs of doing business, is the most unproductive.
I personally know of some SMEs operating out of JTC flatted factories. But once the same building is now managed by Maple trees the rent has been increased dramatically, some >50% within a couple years. I know of a few that have to hire FWs because they cant afford to pay SC wages because of the increased rental. And with the new FW quota and levy, a couple of called it quits. And besides private companies, who else is driving up business cost? -
Dora1:
Fact remains that most people in Singapore cannot trace their ancestry back to Singapore before the days of Raffles. 200 years is not a lot to ask for people who claim to be \"indigenous\".
:slapshead: you want to trace like tat, then everyone on this earth are also not indigenous except the Eithopians lorpirate:
Raffles negotiated with the Sultan of Johor. The ancestors of a lot of the Malays here and in Malaysia actually immigrated from the Middle East, India and various islands in the Indonesian archipelagos after Raffles and Farquhar set up the British outpost. So yeah, those indigenous occupants of Old Temasek already diminished, if not by 1830, certainly by 1930.
Singapore is not Malaysia. No \"bumiputras\" here.
By the way, the bumiputra policy in MY includes Malay hor, unless u talking abt Orang Asli
Bumiputra policy in MY is a racially discriminatory political tool. I don't want that kind of nonsense in Singapore under the guise of \"blueness\". -
concern2:
It is true that rent for flatted factories formerly under JTC has gone up significantly since they were transferred to Mapletree. I recall that the official reason was that the rent for JTC flatted factories were 'below market' and that it resulted in unfair competition to SMEs in non-JTC flatted factories. Make of it what you will.
This problem is very real. There are companies and F&B outlets that are gradually being driven out due to increasing rental over the years. Otherwise viable businesses with regular customers. The worst is yet to come. Rentals - amongst all costs of doing business, is the most unproductive.Dora1:
I personally know of some SMEs operating out of JTC flatted factories. But once the same building is now managed by Maple trees the rent has been increased dramatically, some >50% within a couple years. I know of a few that have to hire FWs because they cant afford to pay SC wages because of the increased rental. And with the new FW quota and levy, a couple of called it quits. And besides private companies, who else is driving up business cost?
It is not true that rental is unproductive. Commercial and industry buildings become obsolete. Management is also important. Just check out the difference in rental between new and old office buildings, shopping malls and flatted factories in the same area. -
Irrelevant:
You must be seriously joking lah. Where got get forced to hire FW one. [/quote]Have lah.. I believe.. If don't hire FW how to got money to drive BMW and stay big bungalow?.. hence, they were force by circumstances to hire FW.. really.. :evil:Dora1:
[quote=\"Irrelevant\"]
Depends on what type of co. Some SME only have less than 30 pax, the rental cost can be the same as the manpower cost, esp if they need big space for machines etc.
if u look at my previous posts, I am against indiscriminately hiring foreigners. However I am also aware that a lot of SMEs are \"forced\" to hire cheap FW because of other rising cost such as rental and even COE. So dun only focus on cheap manpower, lower business cost for SMEs as well. -
limlim:
Have lah.. I believe.. If don't hire FW how to got money to drive BMW and stay big bungalow?.. hence, they were force by circumstances to hire FW.. really.. :evil:
But many PMEs also drive BMW and/or stay big bungalow leh. And they don't even have to risk their own capital. :evil: -
pirate:
Yah lor, if the SME bosses only earn $7-8K per month, then might as well wind up the business and find a job.... no risk, no headache on hiring FW vs SC, no need to worry abt rental increase.....limlim:
Have lah.. I believe.. If don't hire FW how to got money to drive BMW and stay big bungalow?.. hence, they were force by circumstances to hire FW.. really.. :evil:
But many PMEs also drive BMW and/or stay big bungalow leh. And they don't even have to risk their own capital. :evil: -
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You are talking about the CEOs of many GLCs?
pirate:
But many PMEs also drive BMW and/or stay big bungalow leh. And they don't even have to risk their own capital. :evil:limlim:
Have lah.. I believe.. If don't hire FW how to got money to drive BMW and stay big bungalow?.. hence, they were force by circumstances to hire FW.. really.. :evil:
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So true! That is what we are doing to combat escalating rental of our businesses:
- hire cheaper FWs
- make them worker longer hours
- cut manpower & make 2 workers to shoulder originally 3 workers job.
We explain to them especially citizens that we can't take escalating business rental costs anymore & that the alternative will be we close shop & you all become jobless, up to them!
Blame who hah? Very clear right?
Other than Mapletree, still got JTC, CCT,CMT, Keppel REITs, etc.Dora1:
Yes, of course I am aware that SG has been hiring FWs for the longest time. What I am saying is that the gov is tightening the FW quota, increasing levy etc to push Companies to hire SCs, which theoretically is a good move. However, other operating costs such as rental and transport (COE, ERP, etc) has been increasing dramatically at the other end. And at the same time, the global economy is down, so the SMEs cannot increase their prices to stay competitive. So the SMEs cannot afford to pay more to attract SCs to join them, and yet at the same time they can't employ FWs. So they are squeezed on both ends.
You must be seriously joking lah. Where got get forced to hire FW one. Singapore manufacturers have been hiring FWs since 30 years ago! There are professional firms all over the place helping you to recruit them, Chinese, Indians, etc. Just tell them your quota. If your fren tell you never hire FW until recently, I would also like some of what he is smoking. FW are hired simply because they are cheaper and more hardworking than Singaporeans at the same price point, period. Remember we use to have many garment factories...Irrelevant:
[quote=\"Dora1\"]Depends on what type of co. Some SME only have less than 30 pax, the rental cost can be the same as the manpower cost, esp if they need big space for machines etc.
if u look at my previous posts, I am against indiscriminately hiring foreigners. However I am also aware that a lot of SMEs are \"forced\" to hire cheap FW because of other rising cost such as rental and even COE. So dun only focus on cheap manpower, lower business cost for SMEs as well.
As for rental = labour cost, have you seen hard numbers before or not? Rental for factory is $20 per sq metre per month, give or take. If a company has 25 employees with average pay of $2,500 (including bonus, cpf, insurance, etc), total wage cost is $62,500 per month. To spend that much on rental, factory size would be like in excess of 33,000 square feet! And probably there are at lease 2 shifts working since there are BIG machines? So 12 ppl in 33,000 sqft? You can't get that kind of space ratio even in Malaysia, except maybe a logistics warehouse
So essentially what I am saying is, if they want the tightening FW policy to work, which is for companies to hire more SCs, then the gov should also watch the other operating costs. JTC selling the flatted factories to Mapletree, which sells REITs and shares and all, is encouraging inflated rentals, as Mapletree is listed and therefore their goal is to ensure that the shareholders get a good profit. The result is increased rental of >50% in the last few years.[/quote]
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