Did Lee Hsien Loong just announce a minimum wage of S$1,400?
What is the Local Qualifying Salary and how does it it fit into the broader spectrum of various labour protections in Singapore?
Following the National Day Rally speech, there seems to be some confusion regarding the announcement that companies in Singapore will be required to pay local citizen/PR employees a minimum of S$1,400 per month.
Judging by public comments online, many people appear to be cheering it as an introduction of national minimum wage for all Singaporeans. This is incorrect.
In reality, not only is it not a minimum wage, but it has existed in Singapore for years and its purpose is quite different.
What Prime Minister Lee Hsien Loong was referring to is Local Qualifying Salary (LQS) — a solution meant to counteract abuse of employment of foreign workers at the expense of Singaporeans.