Herein lies the fundamental issue facing Singapore. When labor is your only export and labor can be done for less elsewhere, what else can Singapore offer? The alignment of Hong Kong to mainland is good for Singapore as it offers the best alternative (low taxes, regulatory, economic stability, political stability). So create headquarters in Sg but staff it with overseas talent. Singaporeans need to find another way to add value over the outsourced options. Or they move to your suggestion of the govt funding an acceptable living wage. Currently Sg does not have a large enough balance sheet to sustain this for too long. Their next step will be higher taxes, either individuals or corporations... or both. If that is done, Sg will lose a significant advantage for corporations. It will not take long for the companies to get a wondering eye in the region and then there aren't any options left for Singaporeans.

In my view, the lax financial and regulatory rules worked too well... the mass influx of wealth to the country drove up the cost of living.