Hands off my suitcase full of goodies

Budget 2013 observations

Here are a few thoughts on Budget 2013: The most eye-catching policy to come out of this Budget is the Wage Credit Scheme, under which the government will co-fund 40 per cent of wage increases for Singaporean workers earning up to a gross monthly wage of S$4,000. This is a further departure from the government’s previous insistence that wage increases must follow productivity improvement. Now, despite a reported productivity drop of 2.6% in 2012, it is pushing ahead for firms to pay their local workers better. This shows a gradual recognition (or resignation, depending on how you look at it)…