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The Economy of Singapore

Workers, Foreign Labour and Inequality

Singapore relies heavily on foreign workers and has no minimum wage, using targeted schemes for lower-wage citizens.

The success story has social challenges.

Foreign workforce

Roughly a third of the workforce are foreigners, from skilled professionals to construction and domestic workers.

Wages

There is no statutory minimum wage. The Progressive Wage Model sets wage ladders in certain sectors.

Inequality

Income inequality is relatively high for a rich country, and living costs, particularly housing, weigh on many.

Migrant conditions

Migrant workers’ dormitories drew scrutiny during the pandemic.

A construction worker

He earns far more than at home but lives in shared dormitory housing away from families.

Assuming rich means equal

Singapore has notable inequality.

Key takeaways
  • A third of workers are foreign.
  • No minimum wage exists.
  • The PWM sets wage ladders.
  • Inequality and living costs are concerns.
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