Singapore
is making a difficult choice on foreign workforce
Heated
debates have broken out in Singapore regarding the policies toward the foreign
workforce. Approximately 40% of the total workforce in Singapore
are foreigners. It is one of a highest ratio in the world. Singapore has had an
open door policy for foreign workers for a long time as they are trying
to close the gap between the high and low grade workforce
to support a fast developing economy. However, this is about to change. Many
Singaporeans are concerned that they might become a minority in their own
country. They are feeling that foreigners are taking their jobs. There are also
concerns that not all foreigners are integrating into local society or respecting
Singaporean culture or values.
The
Singapore government has to make a difficult decision on what kind of workforce
and the volume required for the Singapore economy. The officials are
saying that Singaporeans are better educated now and can replace foreign white
collar workers. The officials have a different view on blue collar workers
saying that a development of Singapore infrastructure requires low grade
foreign workforce as Singaporeans do not want to do low grade work in a
construction and health care industries. One suggestion that has come from
officials is to keep all foreigners on work permits. The rationale behind it is
to keep foreign workforce in Singapore only when foreigners are economically
active. Once foreigners are close to a retirement age their work permits won’t
be renewed. It is considered that this approach will help to increase the working
to elderly population ratio and won’t be a burden on the social
welfare system in Singapore.
Some
representatives of foreign chambers of commerce have expressed their concern on
any further restrictions on employment of foreign workforce in Singapore. They
are saying that it will hurt the image of Singapore as a free
economy. There are also some concerns from the local business
community who are concerned that some international companies may completely
withdraw from Singapore as they might find difficult to find a suitable
personnel for their Singapore offices. This might lead to a chain reaction when
local businesses need to lay off their staff due to a drop in business.
Singapore Business Review publish today an article related to this topic.
ReplyDeletePopulation should be capped at 6M: NMP Laurence Lien.
Nominated MP Laurence Lien said that Singapore can live with a cap of the population at 6 million by 2030 and still be dynamic. "Many vibrant economies among the OECD countries are already below an old-age support ratio of 4, and are moving towards a ratio of 2 as a long-term sustainable rate".
http://sbr.com.sg/economy/news/population-should-be-capped-6m-nmp-laurence-lien