Tuesday, March 04, 2014

Bad design for Wage Credit Scheme

Last year's budget has a Wage Credit Scheme where the G subsidizes 40% of the wage increase for workers. Many small enterprises cannot qualify for this subsidy, as they do not fit the criteria set in the budget. 

This year, the G is continuing this scheme. I suspect that it is the larger companies that are benefiting from the scheme, and not the small companies. 

I find it so wasteful to spend so much tax payer's money to benefit the wrong type of businesses.

It would have been better if the G had subsidized all of the employer's CPF contribution up to a certain limit per company. This is simpler, and the money is going to the right places.

I find our finance minster to be ineffective, and he is wasting so much tax payer's money without achieving the goal of improving productivity and making small business sustainable.

Take a look at the number of small companies reporting losses in each year .... 100,000 of them. This is a bad situation for Singapore.

http://c-onyx.com/pdf/1744

1 comment:

Anonymous said...

what about your own company >
are you making a profit ?

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