Attempt to Alleviate Costs of Living, Raises it as well.LPPL
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Indeed, it is an LPPL move....
I feel our gov should consult real world economists in the USA for better ideas than their usual sleep over night ideas...
Seems every step they make (purportedly for the people), the repercussions incurs two three steps backwards!
They running this country like a friggin ill-managed company!!
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Proposed increase in CPF contribution could hit some businesses: analysts
By Wong Siew Ying, Channel NewsAsia | Posted: 01 January 2007 1954 hrs
SINGAPORE : The prospects are looking up for Singapore this year.
And if it stays that way, workers could be enjoying a 1 to 2 percent increase in their employer's CPF contribution rate, as indicated by Prime Minister Lee Hsien Loong in his New Year's Eve speech.
While many, including unions, are upbeat about the move, analysts say it could hit some businesses.
The retail sector has probably seen better days.
And the year 2006 was not one of them, according to market watchers.
Sales did not rise in tandem with economic growth.
And retailers who have not done well will count among those who will feel the heat of the suggested CPF restoration.
Song Seng Wun, Regional Economist, CIMB-GK Research, said, "Not everybody has ride along that growth and now, with the government saying that your labour may cost more because you are paying more for CPF, will be an added burden because in this environment, what we are seeing is wage cost is going up quite steadily and you are also seeing rentals going up as well, be it in big fancy malls that have opened up or be it office space...that has gone up as well."
A way around this is to allow companies more flexibility in hiring foreign workers, as well as encouraging them to recruit older Singaporeans.
Mr Song says the business environment will get more challenging but Singapore's investment in science and research is likely to pay off.
He said, "Beyond the next couple of years, as we continue to put more R&D into especially the chemical and manufacturing sectors, perhaps we will see value added contribution from these sectors come back to sustained GDP levels of 5 to 6 percent, compared to previously where we were talking about long term growth of Singapore at 3 to 5 percent."
The construction industry is also expected to create more jobs and expand between 3 and 5 percent this year.
Analysts add that the construction sector is finally in the black for the first time after five years.
The outlook seems bright this year, but analysts say issues like the bird flu, terrorism and volatile oil prices will remain a thorn in the side.
And on top of that, a weakening US economy could also affect exports in the region. - CNA/ms -
US??!! Forget it~!!...
Who has got the largest Trade Deficit??
I still dun tink 2007 is a gd time for CPF restoration... We've already come so far... Why bother to bring us backwards??
I thought the Construction sector is already in the black in the last quarter of 2005??
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the cpf increase serves only one purpose - more money for cpf board.
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The employees could be taken away more from them wif the 1-2% increase... Just watch~!Originally posted by dragg:the cpf increase serves only one purpose - more money for cpf board.
I thought the variable bonus is there for a reason?? 
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Can't you see?
Every step the gov takes to so call "help", ALWAYS involves money paid to them! It's either EMPLOYERS or EMPLOYEES who ends up paying more to our gov!!!
The farking rebates in SC and reduction in Tariffs, can't beat their LONG TERM price hikes in almost every aspects of our daily living costs!!!
DOTTV!!! -
Cost of living is going up n up!!!! our fellow sporeans' salay going down n down!!!!
First day of my retirement, went out 2 eat lunch costing me S$150 for 6 ppls!!!
The boss of the rest says this is the worst yr after 2003,only 1 table for lunch!! and rental is S$29k pm up from $15k last yr!!!! -
dont forget another 2% for the 29k soon.Originally posted by foomwee88:Cost of living is going up n up!!!! our fellow sporeans' salay going down n down!!!!
First day of my retirement, went out 2 eat lunch costing me S$150 for 6 ppls!!!
The boss of the rest says this is the worst yr after 2003,only 1 table for lunch!! and rental is S$29k pm up from $15k last yr!!!!