[Bigiron]

He Ting Ru presses for exit plan on wage subsidies, but Chee Hong Tat offers no clear timeline 

During the Committee of Supply debate on 28 February 2025, Member of Parliament He Ting Ru questioned the long-term sustainability of the Progressive Wage Credit Scheme, highlighting its repeated extensions and potential impact on business reliance. In response, Second Minister for Finance Chee Hong Tat defended the scheme, emphasising its role in supporting low-wage workers while reiterating that future extensions will be decided closer to 2026 based on economic conditions.

https://www.theonlinecitizen.com/2025/03...-timeline/

[Bigiron]

He Ting Ru Presses for Exit Plan on Wage Subsidies, but Chee Hong Tat Offers No Clear Timeline
 
Source: The Online Citizen, 2025-03-01
 
Theme: This article details a debate in Parliament surrounding the long-term sustainability of the Progressive Wage Credit Scheme (PWCS) and the lack of a clear exit plan for the program.
 
Core Points:
 
- He Ting Ru's Concerns: Member of Parliament (MP) He Ting Ru expressed concerns about the long-term sustainability of the PWCS, highlighting its repeated extensions and potential for businesses to become overly reliant on government support.
 
- PWCS Background: The PWCS was initially introduced in 2013 as a three-year initiative to support wage increases under the Progressive Wage Model. However, it has been repeatedly extended and expanded, with funding levels fluctuating.
 
- Business Dependence: He Ting Ru pointed out that employers have called for continued co-funding of wage increases beyond 2026, suggesting a growing reliance on government support. She questioned how the economy reached a point where businesses depend so much on these subsidies and emphasized the need for a clear exit plan with specific targets.
 
- Chee Hong Tat's Defense: Second Minister for Finance Chee Hong Tat defended the PWCS, stating it is designed to help businesses pay low-wage workers better salaries. He reiterated that the scheme is scheduled to cease in 2026 and that a review would be conducted closer to that date, considering prevailing economic conditions.
 
- Lack of Clarity: While Chee acknowledged concerns about business reliance on wage subsidies, he did not provide specific metrics for phasing out the scheme or confirm whether the government had conducted an analysis on its effects on productivity investments.
 
- Uncertainty for Businesses: The lack of clarity on long-term plans might leave businesses uncertain about future wage policies, potentially delaying investment and wage decisions until the government makes its next announcement.
 
Key Takeaways:
 
- This debate highlights the complex issue of balancing wage support for low-income workers with long-term economic sustainability.
 
- The government's decision on the PWCS will likely depend on the broader economic landscape and ongoing engagement with industry stakeholders.
 
- The lack of a clear exit strategy for the PWCS could have significant implications for businesses and the economy.

[Ola]

Ask for exit plan, not asking Tat-Tat to be god, lah

Tat-Tat reply using the timeline for what ?

He put his LJ in his skull like Malaysian Traitor!!

[Ola]

He messed- up the Income Alliance Deal

without any thoughts for consumers

My friend said- PAP's idea is RARELY User Friendly

if compared with other countries ie swimming locker, office lobby lifts . . .


https://www.theonlinecitizen.com/2024/10...-handling/

[red3]

Is this the profit that is bouyant and creating record high by the recipient companies ....