I would partially agree with the post that the increase in GDP would increase hardship among some Singaporeans but would disagree that the GDP figures are “not natural and inedible”.

1. Overheating

concerns of overheating is only very true if there is a sustained period of such growth over a period of time (which is highly unlikely) inflation can indeed spike during such periods. However the government has many readily available tools at its disposal to reduce inflation: Currency controls , GST (7%) and wages (By increasing or decreasing foreign labour) – its a huge buffer zone to control any sort of spiraling inflation, It is probably premature to say that overheating will definitely occur more so when the government has many disposable tools to prevent it.

2. Relation between foreign labour and GDP growth

I think one of the most important points that most people misunderstand is the government stand on foreign labour. It is a logical and important step to ensure that there is an ample supply of labour available to the market. Singapore’s unemployment stands at 2.2% which is very low and would probably not accommodate any large increase in demand of labour. (100,000 workers is already greater than the 2.2% of avaialble Singaporean workers)

Effects:

i. reduce strain on labour market (by ensuring supply meets demand)
ii. reduce wages (by increasing supply of labour)
iii reduce inflationary pressures ( by reducing wages)

3. Wealth Distribution gap

I think that the most pressing issue that the government most solve is the wealth distribtuion gap caused by the up-swing in GDP growth.

Asset prices are spiraling out of control due to the influx of FDI (Foreign investments) and the overheating GDP which auctually is a good thing for the wealthier Singaporeans as they are asset rich, but would not be great for the majority of Singaporean who live in HDB (who are technically renting their apartments for 99 years- higher asset prices imply higher rent).

Coupled with the governments policy of bringing in Foreign workers to reduce inflationary pressures – an undesirable effect is the direct impact of lowering labour wages especially in the lower income range (most foreign workers are in this range)

Add the spike in inflation that is probably going to come soon , we have sandwiched lower and middle income Singaporeans who will feel the effects of:

i. Inflation (higher cost of living and depreciated savings)
ii. Higher Asset Prices ( higher cost of housing )
iii. Controlled wages ( Government policy of controlling inflation by bringing in foreign workers)

4. Inedible & Un-natural ?

Probably not inedible, its just a matter of who is getting a larger slice of a pie (the pie has obviously increased in size) , and probably not un-natural since it is caused by a surge in exports (which has little to do with government policy).

Their bonus structure needs to be changed for sure. At the very least, it should no longer be pegged to GDP growth because then a quickly rising property market would also be good for their pockets, when it isn’t obviously good for the majority of the non-speculative portion of the citizenry.
There should be some form of a reward system that will steer Singapore’s future in the direction of Australia or Switzerland or Canada, and not Shanghai or Hongkong or Tokyo.
Singapore can do it, if only she dares to challenge the status-quo.

On the other hand, it is important to build up arguments & viewpoints to educate and inform S’poreans not to forget the other side of the story regarding the fantastic GDP growth and don’t be taken in blindly by the good news only & therefore sing praises for the PAP only.