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Singapore warns higher wages will spark inflation

Singapore warns higher wages will spark inflation

Singapore Prime Minister Lee Hsien Loong has warned that the city-state's tight labor market will push wages higher and also spark inflation.
Lee said in his annual May Day message Monday that higher wages will boost business costs, undermine competitiveness and quicken inflation. Lee said Singaporean companies and workers must improve skills to increase productivity and help expand the economy.
Lee said recent government efforts to stem the inflow of foreign workers have hindered the expansion plans of many companies. Lee said some companies may choose to leave Singapore.
Singapore's inflation rate rose to 5.2 percent in March while the government expects the economy will grow as little as 1 percent this year.


Updated : 2021-07-28 10:04 GMT+08:00