For the past decade, the government has emphasized creative thinking in schools, today it has walk the talk by introducing a new measure known as "Job Credits" in its latest budget to fight the recession.
Job Credits is set to become the new buzzword in economics in a few years' time. This innovative measure introduces a fresh approach to retaining jobs in an economy and is an out-of-the-box measure never before implemented by any country. The idea is that the government would hand out "credits" or rebates to companies and the size of the 'credit' would depend on the number of workers the firm employs. For each worker employed, the firm gets a 12% rebate on the wage of the worker. The credits would be handed out every 3 months or 4 times a year. This innovative approach contributes directly to the government's aim of protecting the jobs of Singaporeans.
I must say that this time round I am impressed by the quality of the solution conceived by the budget team. It's something that is simple, to the point and effective in achieving its objective.
1 comment:
Hmmm...but to what extent can the workers' jobs be truly secured? Plus can it also solve other things like ageism or sexism (with regard to women and maternity leave)? It reminds me of the 'GST Rebates' thingeys we receive once in a while - which doesn't exactly mitigate the reality of increased prices in everything we consume.
But of course I've no idea how you analyse this from the perspective of an economics student, it's just my two cents' worth.
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