Changes to Wage Income Supplement

The minister for manpower is making some changes to the Wage Income Supplement, a scheme to help supplement the wages of low income workers. He has identified four obstacles on why low income workers are not attending courses to upgrade their skills.

This is an example of a scheme that is not working well, as it does not address the root of the problem and is not practical.

A better approach is to set a minimum wage, without the need to attend courses (which are also costly and not so useful). Many of the low wage earners know how to do their work and do not need to attend courses, as they can learn on the job.

If the workers are paid a decent wage, they will not have to work long hours to earn enough, and this will allow them time to attend upgrading courses. Many people will want to upgrade their knowledge and skills, if they find it really useful to their job. (There are some exceptions, but they have to be dealt with separately).

Another example of a scheme that is not working well is the baby bonus, which does not help to address the decline in our birth rate during the past two decades.

Tan Kin Lian