And no the person saying it is not a millionaire minister or a PAP social media or msm media running dog. It’s an economist from an int’l bank.
All this talk of a recoverying economy (Example:”Singapore economy looks to rebound in 2021″and STI recovering to last yr’s highs, reminds me of what a Jap economist was saying late last yr: the FT restrictions was no good for the economy. (Skip the next 10 or so paras to “Hiromasa Matsuura …” if you know the facts and the PAP govt’s spin on the data.
First a recap of the restrictions.
Singapore tightened its labor rules last September. But there’s a problem. FTs make up nearly 40% of the labor force — far higher than in most of its neighbors.
Its citizens are also rapidly aging, meaning that by 2030, nearly a quarter will be 65 or older. If a graying Singapore accepts fewer foreign workers amid reduced interaction with the outside world, can it maintain economic growth?
According to the Ministry of Manpower, Singapore had 1,351,800 foreign workers as of June last yr, of which 14% were Employment Pass holders — professionals, managers and executives like — while another 14% were S Pass holders, or mid-level staff with skills. Almost all of the rest possessed a Work Permit, which includes laborers from lower-income countries engaging in construction and shipyard work as well as domestic helpers such as maids and nannies.
If it accepts fewer foreign workers amid reduced interaction with the outside world, can it maintain economic growth?
PM says no, saying the Government must convince the sheep S’poreans that the best way to protect livelihoods and families is to keep Singapore open for talent and business. He said, “If we just close ourselves up and send away the work pass holders, it will result in fewer jobs and opportunities for Singaporeans, and more hardship for our workers and their families.” He was speaking at the People’s Action Party (PAP) biennial conference on 8 November last yr.
PM says he understands S’porean fears
Prime Minister Lee Hsien Loong acknowledged the worry S’poreans have about job competition coming from “foreign talents”.
He said he fully understood the pressures faced by S’poreans with regard to foreign work pass holders competing against Singaporeans for jobs in Singapore.
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But’s that not juz PAP propaganda.
Hiromasa Matsuura, a Singapore-based economist at Mizuho Bank, said there are two ways the restrictions could weigh on the economy.
“If a foreign worker’s role is not successfully replaced by a local, the growth of the total labor force would weaken, resulting in a negative impact on the economy,” Matsuura told Nikkei. The other, he said, is that a decline in foreign workers would mean a slowdown of total population growth, which would lead to shrinkage in consumption.
“If employers’ needs and local job seekers’ needs do not match, a tightening of foreign labor rules may not be very effective,” Matsuura stressed. “The replacement of foreigners with locals should take place in tandem with the growth of relevant human capital.”
More at https://asia.nikkei.com/Spotlight/Asia-Insight/Local-jobs-or-global-talent-Singapore-faces-COVID-era-conundrum
My take: The business reaction so far suggests there is no guarantee of more jobs for locals. Our education system that screwed up?
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*From September 2020, the minimum salary requirement for an Employment Pass applicant was raised to 4,500 Singapore dollars (us$3,300) a month from the previous SG$3,900. That followed an increase from SG$3,600 to SG$3,900 in May. In the financial sector specifically, the threshold was set even higher, at SG$5,000, from December. Visa applicants in senior positions must earn even more. Similarly, the minimum salary for the S Pass was also raised to SG$2,500 from October, compared with SG$2,400 previously. “You may of course adjust your EP or S Pass employees’ salaries upon renewal,” Manpower Minister Josephine Teo told employers in a Facebook post explaining the new requirements. Still, the message was clear: “But consider the missed opportunities of building up your local employment, and the strong government support to do so,” she said.