National wages council and the macro-economic management of Singapore.

Abstract

This Graduation Project (GP) highlights the key roles of the National Wages Council (NWC) in the macro-economic management of Singapore, most notably, in the areas of economic restructuring, skills training, crisis management and wage reform. Chapter 2 offers empirical evidence indicating that high wage would indeed induce a substitution towards capital. The study of the Skills Development Fund (SDF) in Chapter 3 provides an analysis of the usage of funds from the SDF over the years and shows the emphasis given to skills upgrading. Chapter 4 presents a unique aspect of Singapore in using wage policy, in addition to monetary and fiscal policies, in successfully combating the various economic crises. Of course, the analysis of the contributions of the NWC would not be complete without discussing its effort on wage reform which is dealt with in Chapter 5. This GP shows that the NWC has contributed enormously to the economic landscape of Singapore. The concluding chapter assesses the relevance and future role of the institution and argues that the NWC still has a strategic role to play in wage determination in Singapore.