Foreign worker cap poses real dilemma, says Lim Hng Kiang
'Huge trade-off' in lost growth opportunities involved
By Yasmine Yahya & Rachel Chang
Ms Foo Mee Har greeting a fishmonger at the Boon Lay market, as Mr Lim chats with a resident, during a walkabout yesterday. -- PHOTO: LIANHE http://www.straitstimes.com/STI/STIMEDIA/image/20110502/ST_IMAGES_SPLIM.jpg
RESTRICTING the number of foreign workers in Singapore's economy presents a 'real dilemma' for the Government, as it will likely require turning away big foreign investments.
Trade and Industry Minister Lim Hng Kiang yesterday appealed to Singaporeans to understand the 'huge trade-off' the country will have to accept in terms of lost opportunities for growth.
Responding to concerns over the influx of foreigners, the Government said early last year that it would maintain the proportion of foreigners in the labour force at its current level of one-third.
'We will keep foreign workers to one-third of the workforce, but I can tell you that one-third is a very severe limitation to us,' Mr Lim said, in characteristically frank terms.
He was speaking to reporters after a walkabout at Boon Lay market with his fellow People's Action Party (PAP) candidates for West Coast GRC - Mr S. Iswaran, Mr Arthur Fong, Mr Lawrence Wong and Ms Foo Mee Har.
In 2006 and 2007, he said, Singapore accepted a 'bumper crop' of investments in sectors like petrochemicals.
They meant an influx of foreign workers, but also helped the economy to expand by 7 per cent, he noted.
With the current limit on foreign workers, Singapore will have to aim for lower growth figures of 3 per cent to 5 per cent.
'If we have another bumper crop of investments, we'll have a dilemma. I'll have to be selective and turn away those that exceed our parameters,' he said.
The cap on foreign workers will also be a challenge for rapidly growing sectors like tourism, Mr Lim warned.
'We are talking to the tourism sector companies and we tell them, this is what Singaporeans want. We have to change our strategy and... it will require a lot of adjustments,' he said.
Mr Iswaran, who is Senior Minister of State for Trade and Industry, emphasised that these trade-offs require that the one-third cap be viewed as a long-term goal, rather than be kept to as a 'theological constraint'.
Mr Lim reiterated his view that taking in big investments with their concurrent need for foreign manpower yields the best outcome for Singaporeans.
He could bring in an investment that creates just 40,000 jobs, all for Singaporeans, and tell them to 'take it or leave it', he said.
But if he had the flexibility to bring in an investment that creates 80,000 jobs, one-third of them open to foreigners, Singaporeans could choose the best jobs - leaving the rest to foreigners.
He made it clear that while a cap on the number of foreign workers may assuage Singaporeans' concerns on the ground, the price would be paid in a loss of nimbleness and flexibility.
The latter has always been Singapore's competitive advantage, he said, citing the example of how ExxonMobil decided to build a $5 billion petrochemical plant in Singapore in 2007.
The plant on Jurong Island required a reconfiguration of the roads around it.
Even before the company had decided to build the plant in Singapore, the Government carried out this reconfiguration - illustrating its efficiency and tipping the balance decisively in Singapore's favour.
Ironically, residents in parts of Mr Lim's West Coast GRC are among those hardest-hit by the influx of foreigners.
Several foreign worker dormitories are sprinkled across Boon Lay and West Coast, which have meant that foreign workers are a common sight in housing estates, whether picnicking with friends at void decks or using the exercise facilities.
Mr Iswaran, who helms the West Coast-Ayer Rajah ward, acknowledged that 'it's a real issue' and said that MPs and grassroots leaders have attempted to shepherd along a process of accommodation and acceptance.
'On the one hand, it is about educating the foreign workers to raise their standards of behaviour. On the other hand, we are giving residents the assurance that their security is well taken care of and their living environment will be maintained,' he said.
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'You only need one crisis to set us back severely and that's why the PAP says let's make sure we have the fourth generation of leaders in place.
'To give you one example: the PM entered politics in 1984 and soon after that, there was the 1985-1986 crisis. He was practically thrown into the deep end of the pool. But there was a big team at the time. He was in MTI (Ministry of Trade and Industry) and later on he chaired the Economic Committee to look at our strategies for the future.
'By the time the 1991 downturn (caused by the Gulf War) came, the PM already had seven, eight years of experience. I worked with him in the Asian financial crisis and could see that with 15 years of experience, you are better prepared - you know what to do, what works, what doesn't work.
'When we came to the 2008-2009 crisis, it was very clear that the PM knew exactly what to do, not only when the crisis started, but way before the crisis. So by mid-2008 he was already directing us to put in place some changes in our policies to buffer us before the crisis came on and, of course, we had more changes in 2008 and he brought forward the Budget in early 2009 and laid out the full programme to deal with the 2008-2009 crisis.
'So that's the kind of leadership we need - people who have gone through the experience, know what is doable, what works.
And I think this is what the PM is trying to do, in bringing in the fourth generation of leaders early, so they have this period of understanding Singapore, Singapore's economic strategy and how to deal with crises when they occur.'
Mr Lim Hng Kiang, on why having the right leadership in place early is important
'Huge trade-off' in lost growth opportunities involved
By Yasmine Yahya & Rachel Chang
Ms Foo Mee Har greeting a fishmonger at the Boon Lay market, as Mr Lim chats with a resident, during a walkabout yesterday. -- PHOTO: LIANHE http://www.straitstimes.com/STI/STIMEDIA/image/20110502/ST_IMAGES_SPLIM.jpg
RESTRICTING the number of foreign workers in Singapore's economy presents a 'real dilemma' for the Government, as it will likely require turning away big foreign investments.
Trade and Industry Minister Lim Hng Kiang yesterday appealed to Singaporeans to understand the 'huge trade-off' the country will have to accept in terms of lost opportunities for growth.
Responding to concerns over the influx of foreigners, the Government said early last year that it would maintain the proportion of foreigners in the labour force at its current level of one-third.
'We will keep foreign workers to one-third of the workforce, but I can tell you that one-third is a very severe limitation to us,' Mr Lim said, in characteristically frank terms.
He was speaking to reporters after a walkabout at Boon Lay market with his fellow People's Action Party (PAP) candidates for West Coast GRC - Mr S. Iswaran, Mr Arthur Fong, Mr Lawrence Wong and Ms Foo Mee Har.
In 2006 and 2007, he said, Singapore accepted a 'bumper crop' of investments in sectors like petrochemicals.
They meant an influx of foreign workers, but also helped the economy to expand by 7 per cent, he noted.
With the current limit on foreign workers, Singapore will have to aim for lower growth figures of 3 per cent to 5 per cent.
'If we have another bumper crop of investments, we'll have a dilemma. I'll have to be selective and turn away those that exceed our parameters,' he said.
The cap on foreign workers will also be a challenge for rapidly growing sectors like tourism, Mr Lim warned.
'We are talking to the tourism sector companies and we tell them, this is what Singaporeans want. We have to change our strategy and... it will require a lot of adjustments,' he said.
Mr Iswaran, who is Senior Minister of State for Trade and Industry, emphasised that these trade-offs require that the one-third cap be viewed as a long-term goal, rather than be kept to as a 'theological constraint'.
Mr Lim reiterated his view that taking in big investments with their concurrent need for foreign manpower yields the best outcome for Singaporeans.
He could bring in an investment that creates just 40,000 jobs, all for Singaporeans, and tell them to 'take it or leave it', he said.
But if he had the flexibility to bring in an investment that creates 80,000 jobs, one-third of them open to foreigners, Singaporeans could choose the best jobs - leaving the rest to foreigners.
He made it clear that while a cap on the number of foreign workers may assuage Singaporeans' concerns on the ground, the price would be paid in a loss of nimbleness and flexibility.
The latter has always been Singapore's competitive advantage, he said, citing the example of how ExxonMobil decided to build a $5 billion petrochemical plant in Singapore in 2007.
The plant on Jurong Island required a reconfiguration of the roads around it.
Even before the company had decided to build the plant in Singapore, the Government carried out this reconfiguration - illustrating its efficiency and tipping the balance decisively in Singapore's favour.
Ironically, residents in parts of Mr Lim's West Coast GRC are among those hardest-hit by the influx of foreigners.
Several foreign worker dormitories are sprinkled across Boon Lay and West Coast, which have meant that foreign workers are a common sight in housing estates, whether picnicking with friends at void decks or using the exercise facilities.
Mr Iswaran, who helms the West Coast-Ayer Rajah ward, acknowledged that 'it's a real issue' and said that MPs and grassroots leaders have attempted to shepherd along a process of accommodation and acceptance.
'On the one hand, it is about educating the foreign workers to raise their standards of behaviour. On the other hand, we are giving residents the assurance that their security is well taken care of and their living environment will be maintained,' he said.
[email protected]
[email protected]
'You only need one crisis to set us back severely and that's why the PAP says let's make sure we have the fourth generation of leaders in place.
'To give you one example: the PM entered politics in 1984 and soon after that, there was the 1985-1986 crisis. He was practically thrown into the deep end of the pool. But there was a big team at the time. He was in MTI (Ministry of Trade and Industry) and later on he chaired the Economic Committee to look at our strategies for the future.
'By the time the 1991 downturn (caused by the Gulf War) came, the PM already had seven, eight years of experience. I worked with him in the Asian financial crisis and could see that with 15 years of experience, you are better prepared - you know what to do, what works, what doesn't work.
'When we came to the 2008-2009 crisis, it was very clear that the PM knew exactly what to do, not only when the crisis started, but way before the crisis. So by mid-2008 he was already directing us to put in place some changes in our policies to buffer us before the crisis came on and, of course, we had more changes in 2008 and he brought forward the Budget in early 2009 and laid out the full programme to deal with the 2008-2009 crisis.
'So that's the kind of leadership we need - people who have gone through the experience, know what is doable, what works.
And I think this is what the PM is trying to do, in bringing in the fourth generation of leaders early, so they have this period of understanding Singapore, Singapore's economic strategy and how to deal with crises when they occur.'
Mr Lim Hng Kiang, on why having the right leadership in place early is important
