Yes it's true. It's a demand and supply thing. I don't think firms are doing badly per se, but the fact is that they pay trainees less now just because they can, given the oversupply of graduates (i.e. if you're not willing to take up a TC in my firm for $1.5k p/m there's 20 other people waiting for your place, and good luck to you in finding another place)

But that being said, I think the Big 4 still retain their $2k p/m allowance.