More tightening on foreign manpower laws would stunt economic growth: DBS

Firms are struggling with depleting labour.

Foreign worker numbers have moderated for the last three years, which ensured a "Singaporean core" in the workforce. However, as low-wage jobs are being shunned by the locals, foreigners are filling in for them.

According to DBS, targeted easing in specific industries could be necessary, particularly where there are social justifications such as the healthcare industry.

"Instead of leaning towards extreme populism, expect policies to remain balanced and prudent even when the decision making becomes more bottom-up," DBS says.

Meanwhile, DBS says implemented policies focus on ensuring fair opportunities for job seekers and helping older displaced professionals gain employment.

"The existing foreign manpower curbs and tight immigration policies are here to stay," DBS adds.