Government to tighten further on foreign workers

Another area of concern for Singaporeans is jobs
a. Have let in a steady flow of foreign workers at many levels
b. Open policy has helped our economy to thrive

Full employment, but Singaporeans still worry about competition from foreigners
a. e.g. one polytechnic student once asked me:
i. Why set the qualifying income for ‘S’ Pass at $1,800?
ii. i.e. $1,800 is less than many poly graduates earn. Why allow a foreigner to compete directly against me?
b. I understand feelings
i. Need some non-Singaporeans at all levels to complement Singaporeans and make up shortfalls
ii. But also important that Singaporeans remain the core of the workforce – cannot become like Gulf States, where the workforce is predominantly foreign

Have been tightening up on foreign workers progressively through foreign workers’ levy and dependency ratios
a. e.g. ‘S’ Pass cutoff raised to $2,000 recently
b. We will protect Singaporean workers, especially at lower end
c. But mindful especially of local SMEs, who often need foreign workers most
d. Will do our utmost to help SMEs adjust, including grants and tax deductions to help them upgrade productivity

At upper end, have to allow in high quality professionals and entrepreneurs liberally to grow businesses here, and help Singapore compete internationally

Issue is the middle-lower range, where foreigners on Employment Pass work alongside our middle level managers and executives
a. Most of our younger executives are university and poly graduates
b. May be classified as PMETs, but do not see themselves near the top yet
c. Feel vulnerable to unrestrained competition from foreigners

Will tighten further on this middle range of foreign workers
a. Raise salary thresholds for Employment Passes
b. Tighten educational qualifications
c. MOM will announce details soon
d. MOM will also work together with tripartite partners to develop guidelines for fair and responsible recruitment and employment practices

Caution: tightening on foreign workers does not mean Singaporeans will automatically get better jobs or higher pay
a. Singaporeans are competing with workers all over the world
b. Unskilled workers, but increasingly our graduates and professionals too
c. China producing 7 million graduates a year (twice our citizen population) – 1.5 million in engineering and science alone
d. Competing furiously with one another in China
e. Impact will be felt worldwide over next 20 years
f. Only way for us to meet challenge is to rise above this tidal wave of hungry, skilled labour
g. Develop expertise and knowhow to do work that they have not yet learnt to perform

Even then, slowing down the inflow of foreign workers means accepting lower economic growth
a. Some companies may be deterred from investing or expanding their operations in Singapore, and choose to close-down, move or invest elsewhere
b. Less vibrancy in our economy and society
c. Less resources to improve the lives of Singaporeans
d. Fewer opportunities for our people

Must therefore find the right balance
a. Moderate inflow
b. But bring in enough so that our economy has the manpower and talent to grow