First class journalism on Singapore carried in a Malaysian paper.
http://thestar.com.my/columnists/story.asp?col=insightdownsouth&file=/2010/2/6/columnists/insightdownsouth/5616558&sec=Insight Down South
Saturday February 6, 2010
Hitting the brakes on foreign force
INSIGHT: DOWN SOUTH
By SEAH CHIANG NEE
[email protected]
In the face of widespread public resentment, the island republic will cap the number of foreign workers as well as cut down on subsidies extended to permanent residents.
SUDDEN changes of major long-term policies are rare in this well-planned city, but an exception – on immigration – is about to take place.
It is an area that is causing concern to 1.8 million foreigners, or 36% of the population, as well as people in the region seeking to work or settle in Singapore.
Many of the 1.2 million foreign workers and 600,000 permanent residents (PRs) will be waiting to see if – or how much – the policy change will eventually affect their future here.
The Government – faced with widespread public resentment – last week announced it would hit the brakes on the mass acceptance of foreign workers in the city.
The numbers will be capped over the next few years, and levies on foreign workers may be raised.
The announcement came as a surprise. Only four months ago Lee was advising his people to “bear with the tide of immigrations” because foreigners were “essential” for the city.
In a parallel move, the authorities have announced measures to raise fees or cut down subsidies in health, education and public housing provided for permanent residents (PRs).
These perks had led Singaporeans to feel that citizenship was not much different from permanent residency.
Not all foreigners will be equally hit by the cap, and the Government will probably – in its cautious way – not want to upset the operations of major investors.
However, small low-value businesses that depend on cheap foreign labour may be encouraged to move overseas.
The axe will fall hardest on the lowly-skilled rather than the highly-educated professionals.
Singaporeans are more anxious to know whether the Government would continue to admit foreign white-collar professionals, including executives and trained technicians as it had been doing. This is where the main complaints lie.
The authorities recently an-nounced measures to reduce perks for PRs, including the following:
> Healthcare – Shaving off health subsidies to Permanent Residents (PRs) by 10 percentage points from next year (making it 20%). This will make a sharper distinction between a citizen and a foreign PR.
> Public housing – Considering a quota on PRs buying resale public flats along the lines of racial quotas to prevent ethnic enclaves. This could dampen the surge of buying that pushed up resale prices by 40% in the past five years, pushing out young Singaporean buyers.
> Education – Raising school fees – by between S$216 and S$2,400 (RM523 and RM5,818) – for PR children next year, and giving Singa-porean children an extra balloting paper when vying for popular schools.
The largest numbers of PRs are Malaysians who have lived here for many years. They are not generally regarded as “foreign” and will probably be the least affected.
The recent moves followed a significant rise of public unhappiness against the influx of foreigners.
Details of the cut-back have not been announced pending completion of a government economic review report.
Minister Mentor Lee Kuan Yew, however, mentioned a time-span of five years “to tier down our need for foreign workers”.
Lee clarified: “We’ve grown in the last five years by just importing labour. Now, the people feel uncomfortable, there are too many foreigners.
“Trains are overcrowded with foreigners, buses too; property prices have gone up because foreigners with permanent residence are buying into the market.”
Further tightening measures cannot be ruled out if the public disquiet continues to heighten, especially as a general election, scheduled for 2012, approaches.
It is not all about people’s anger, though. The move is partially to correct a fundamental flaw in economic planning that has significantly affected productivity in the state.
The increasing use of an army of lowly-skilled workers has pushed down productivity rates since 2004, with the past three years, moving into negative growths.
“Like an addict hooked on drugs, Singapore has become addicted to cheap imported labour, and it’s a habit that’s hard to break,” said an economist.
Many employers had been resorting to paying lower wages rather than investing in productivity. It has dealt a blow to Singapore’s ambition to move to higher skills.
More importantly to the Government, however, is the rising political costs.
The controversial policy has depressed earnings of ordinary Singapore workers and lowered their quality of life, reported the Wall Street Journal.
“We’re not against foreign workers,” explained one Cabinet minister, “But like wine, too much is a bad thing – and it dilutes focus from productivity.”
The weight of public opinion matters a lot more today than during the authoritarian days of Lee Kuan Yew.
The controversy has erased some of the popularity enjoyed by the People’s Action Party (PAP). The leaders have repeatedly assured Singaporeans that they would always come first, but this has not sunk in well.
In an online poll, only 9.1% said they felt the Government was taking care of citizens first, while nine out of ten people said “No, I feel it is treating foreigners better.”
The Economist wrote several months ago: “The warning signs (on immigration) were all there for the past eight to ten years. The PAP ignored the concerns of the people and it is now too late to turn back...
“... The PAP will have to face the resentment of the citizens adversely affected by their policy at the coming elections.”
The anger is not generally directed at foreigners, though.
“I’m a Singaporean and I have got no issues with PRs or ‘foreign talents’. It’s not their fault for wanting to come over here to make a living,” declared a writer.
“The problem is our Government allowing the intake to be too fast, too furious.”
http://thestar.com.my/columnists/story.asp?col=insightdownsouth&file=/2010/2/6/columnists/insightdownsouth/5616558&sec=Insight Down South
Saturday February 6, 2010
Hitting the brakes on foreign force
INSIGHT: DOWN SOUTH
By SEAH CHIANG NEE
[email protected]
In the face of widespread public resentment, the island republic will cap the number of foreign workers as well as cut down on subsidies extended to permanent residents.
SUDDEN changes of major long-term policies are rare in this well-planned city, but an exception – on immigration – is about to take place.
It is an area that is causing concern to 1.8 million foreigners, or 36% of the population, as well as people in the region seeking to work or settle in Singapore.
Many of the 1.2 million foreign workers and 600,000 permanent residents (PRs) will be waiting to see if – or how much – the policy change will eventually affect their future here.
The Government – faced with widespread public resentment – last week announced it would hit the brakes on the mass acceptance of foreign workers in the city.
The numbers will be capped over the next few years, and levies on foreign workers may be raised.
The announcement came as a surprise. Only four months ago Lee was advising his people to “bear with the tide of immigrations” because foreigners were “essential” for the city.
In a parallel move, the authorities have announced measures to raise fees or cut down subsidies in health, education and public housing provided for permanent residents (PRs).
These perks had led Singaporeans to feel that citizenship was not much different from permanent residency.
Not all foreigners will be equally hit by the cap, and the Government will probably – in its cautious way – not want to upset the operations of major investors.
However, small low-value businesses that depend on cheap foreign labour may be encouraged to move overseas.
The axe will fall hardest on the lowly-skilled rather than the highly-educated professionals.
Singaporeans are more anxious to know whether the Government would continue to admit foreign white-collar professionals, including executives and trained technicians as it had been doing. This is where the main complaints lie.
The authorities recently an-nounced measures to reduce perks for PRs, including the following:
> Healthcare – Shaving off health subsidies to Permanent Residents (PRs) by 10 percentage points from next year (making it 20%). This will make a sharper distinction between a citizen and a foreign PR.
> Public housing – Considering a quota on PRs buying resale public flats along the lines of racial quotas to prevent ethnic enclaves. This could dampen the surge of buying that pushed up resale prices by 40% in the past five years, pushing out young Singaporean buyers.
> Education – Raising school fees – by between S$216 and S$2,400 (RM523 and RM5,818) – for PR children next year, and giving Singa-porean children an extra balloting paper when vying for popular schools.
The largest numbers of PRs are Malaysians who have lived here for many years. They are not generally regarded as “foreign” and will probably be the least affected.
The recent moves followed a significant rise of public unhappiness against the influx of foreigners.
Details of the cut-back have not been announced pending completion of a government economic review report.
Minister Mentor Lee Kuan Yew, however, mentioned a time-span of five years “to tier down our need for foreign workers”.
Lee clarified: “We’ve grown in the last five years by just importing labour. Now, the people feel uncomfortable, there are too many foreigners.
“Trains are overcrowded with foreigners, buses too; property prices have gone up because foreigners with permanent residence are buying into the market.”
Further tightening measures cannot be ruled out if the public disquiet continues to heighten, especially as a general election, scheduled for 2012, approaches.
It is not all about people’s anger, though. The move is partially to correct a fundamental flaw in economic planning that has significantly affected productivity in the state.
The increasing use of an army of lowly-skilled workers has pushed down productivity rates since 2004, with the past three years, moving into negative growths.
“Like an addict hooked on drugs, Singapore has become addicted to cheap imported labour, and it’s a habit that’s hard to break,” said an economist.
Many employers had been resorting to paying lower wages rather than investing in productivity. It has dealt a blow to Singapore’s ambition to move to higher skills.
More importantly to the Government, however, is the rising political costs.
The controversial policy has depressed earnings of ordinary Singapore workers and lowered their quality of life, reported the Wall Street Journal.
“We’re not against foreign workers,” explained one Cabinet minister, “But like wine, too much is a bad thing – and it dilutes focus from productivity.”
The weight of public opinion matters a lot more today than during the authoritarian days of Lee Kuan Yew.
The controversy has erased some of the popularity enjoyed by the People’s Action Party (PAP). The leaders have repeatedly assured Singaporeans that they would always come first, but this has not sunk in well.
In an online poll, only 9.1% said they felt the Government was taking care of citizens first, while nine out of ten people said “No, I feel it is treating foreigners better.”
The Economist wrote several months ago: “The warning signs (on immigration) were all there for the past eight to ten years. The PAP ignored the concerns of the people and it is now too late to turn back...
“... The PAP will have to face the resentment of the citizens adversely affected by their policy at the coming elections.”
The anger is not generally directed at foreigners, though.
“I’m a Singaporean and I have got no issues with PRs or ‘foreign talents’. It’s not their fault for wanting to come over here to make a living,” declared a writer.
“The problem is our Government allowing the intake to be too fast, too furious.”
then ?
