As in the previous Budget, the Government announced that it would increase the foreign worker levy as a disincentive for employers to hire foreigners.
At the same time, however, the Finance Minister presents the new Wage Credit Scheme (WCS) where the Government would pay employers to raise the wages of workers earning $4,000 and below. With the subsidy, employers can use the savings to make up for the levy increase. How does this help to reduce our dependence on foreign workers?
In fact, the measure will make matters worse - increasing wages without lessening our reliance on cheap foreign labour (and, therefore, a rise in productivity). Full story
