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CONFIDENTIAL ##

14

Table 12

V. WAGES

Average wages in manufacturing industries

5.1

It is difficult to compare the wages

of one territory with another in view of the differing levels of economic and social development and the many hidden factors involved such as fringe

Variations benefits and the skill of workers.

in the cost of living also affect the real value

of wages.

Nevertheless, it may be possible within certain limitations to compare broadly the wages in various territories in absolute terms, at the risk of over-simplification.

5.2

Compared with the average wages in the

six countries visited, the average wage in manufacturing industries in Hong Kong is the highest

about $30

a day excluding fringe benefits or about $34 a day including fringe benefits in March 1977.

At about

$27 a day in 1976, Singapore follows closely behind; but if the element of Central Provident Fund for workers is included (that element is more

appropriately regarded as labour costs) the average wage in Singapore will equal

<

that of Hong Kong.

17

The average wage in Korea in 1976 was about 60% of Hong Kong's. Wages are lower in Malaysia (48 per day in 1975) and Indonesia ($11 14 per day in 1977). Workers in the Philippines and in Thailand are the lowest paid both at about $7 a day.

5.3

Table 12 gives details of average wages. For the reasons given in paragraph 5.1 above, and because the statistics available do not all refer to the same period, they should be treated with considerable reserve.

15.4......

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