The labour movement has today highlighted that the CPF for employers should be raised from 14.5% to 16%, which is the long term average that the government is aiming for. However, companies are worried about business competitiveness and whether the turnaround is sustainable.
First of all, turnarounds are NEVER sustainable. If they are, there won't be a downturn in 2000, 2003 and 2008-2009. Turnarounds are sustainable if your business is agile enough to adapt to the environment. How do some companies continue to make profits (I'm not talking about banks) from 2007 to now? Look at the annual reports of some companies and you can find a handful increasing their revenue and profits during this period.
Increasing of CPF decrease their business competitiveness? Then high bonuses to the bosses and upper management doesn't dent business competitiveness? Just today, I think I saw the CEO of Singtel purchasing about 900,000 lots of Singtel shares. Is it purchase or part of the payment package? That's like about 2.9million. Enough said.
There is never a good time to increase any wages. It's how your business adapt to this change.
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