11 Sep '11, 8am

Andrew Loh: Lee Kuan Yew’s 30-year concern, in @YahooSG

Today's TFR of 1.01 means we have a shortfall of 30,000 that means we need 30,000 babies today to balance up or 30,000 20-year olds in 2030. ...we do not need 30,000 20-yr olds now. The real reason for the large influx, I believe, is to expand the workforce rapidly so that we can show very fast GDP growth - more input more growth. It panders to business demand for cheaper labor and benefits GLCs that are service providers as the aggregate demand expands due to population expansion. This generally works against the ordinary workers and in particular lower wage workers. Singapore has a very high rental to wage ratio due to high concentration of people+business. High rentals forces businesses to seek cheaper labor to stay competitive and it is a vicious cycle. Our labor chief Lim Swee Say tells workers to be cheaper but never says that rentals should go down to make Singapore...

Full article: http://sg.news.yahoo.com/blogs/singaporescene/lee-kuan-ye...

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