Wages/salaries in Singapore have continued to increase, even with lower corporate earnings and low growth in productivity.
Part of the reason behind the increase, are recent measures that have been taken to rein-in the number of foreigners working in Singapore. Over the years it has become harder for foreigners to get a job in Singapore, since the eligibility criteria has been raised for employment passes, S passes and also dependent passes.
As per economists at Credit Suisse, these rising costs are making Singapore less competitive as an exporter.
Here are the rankings of countries in Asia, in terms of export competitiveness.
- South Korea
The top performers have been gaining market share, while countries like Singapore, Taiwan and Indonesia have been losing out.
As per the report, these findings are a concern for the economy and jobs in Singapore, especially due to:
- The export driven economy.
- Slowing down of corporate earning/profit levels.
- Low levels of consumer confidence.
- Low productivity growth.