Try COE-style bidding for productivity boost

The Straits Times; Published on Dec 07, 2012
FOREIGN LABOUR
Try COE-style bidding for productivity boost
THE current system of a fixed percentage quota with an algorithm of escalating tax levies does not promote competition and the efficient use of scarce manpower ("Forum gathers public views on next year's Budget"; last Friday).
Unproductive employers often hide under the protection of an assured quota of cheap foreign labour to survive, making the productivity drive fruitless.
To improve productivity in a sustainable way, industries should adopt a bidding system for labour like the auction for certificates of entitlement (COEs) for cars.
There should be separate categories for different industries.
Work permits or high-income employment passes should be divided into the following categories:
Construction/marine sectors;
Manufacturing sector;
Service sector;
Open category for industries that have exceeded their quota limits;
Maids for permanent and foreign residents;
Maids for families of citizens with a combined income of more than $8,000 a month and/or are private property owners; and
Maids for families with a combined monthly income of under $3,000 and/or who own up to a four-room Housing Board flat, with children under 10 years old.

Disabled Singaporeans and elderly parents should be exempt from the bidding scheme and be allowed to hire a maid at a concession.
The hiring of maids is a luxury, like the owning of cars.
Families which wish to obtain such a luxury should be charged stiff fees to discourage usage.
To cater to the eventuality of there being fewer maids, more neighbourhood eldercare and childcare centres should be opened in residential areas.
Businesses, including charity organisations, must bid for the labour COE.
The Government can allocate special subsidies in the form of credits for deserving companies which serve the public interest.
It can also consider giving special credits to companies in which citizens make up 80 per cent of the workforce.
Lai Yew Sin
Copyright © 2012 Singapore Press Holdings. All rights reserved.
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11Dec2012: FOREIGN LABOUR: Try COE-style bidding for productivity boost

11Dec2012: FOREIGN LABOUR: Try COE-style bidding for productivity boost

11Dec2012: FOREIGN LABOUR: Try COE-style bidding for productivity boost

11Dec2012: FOREIGN LABOUR: Try COE-style bidding for productivity boost