Call to relook curbs on foreign labour inflow

SME group asks: Are higher-skilled foreigners taking jobs from Singaporeans?

By Aaron Low, The Straits Times, 4 Feb 2013

THE body representing small and medium firms here has asked for a closer look at the issue of restricting the inflow of foreign workers in Singapore, in its response to the White Paper on population released last week.

Noting that Singaporeans have been urging the Government to reduce the influx of foreigners here, the Association of Small and Medium Enterprises (ASME) said the Government has responded by restricting the flow of both low-skilled foreign workers and foreign talent.

But it said that it could be higher-skilled foreign talent who are taking jobs away from Singaporeans and asked if there are enough jobs for Singapore professionals, managers, executives and technicians (PMETs).

"Is the public outcry over the abundance of lower-skilled foreign workers... or is the outcry more targeted at foreign talent taking jobs away from Singaporean PMETs and putting downward pressure on the salaries and job security of older Singaporeans?" the association asked in a statement.

"The real problem may be the masses of foreign professionals depressing wages across the board for local PMETs."

If this is the case, the association urged the Government to reconsider tightening the flow of lower-skilled foreign workers. If not, SMEs may not be able to "function optimally" and will be forced to downsize or shut down.

The association, which represents 6,500 SMEs, also said that the projected growth of the workforce by 1 per cent to 2 per cent from now to 2020, and 1 per cent thereafter to 2030, in the White Paper may not be enough to support the expansion of infrastructure, such as the building of more homes and MRT rail lines.

It described the Government's projections of productivity gains as "overly optimistic", noting that Singapore achieved only 1.8 per cent productivity growth in the past decade, below the 2 per cent to 3 per cent target set by the White Paper.

The association also called for levies and worker quotas to be differentiated among jobs, depending on the importance of each sector to the economy and how receptive Singaporeans are to the jobs in the sector.

The statement from the association was the latest in a series released by the local business community expressing its views on the White Paper that was released last Tuesday.

SMEs, which account for 99 per cent of all enterprises here and employ 70 per cent of workers, have been particularly outspoken.

Last week, the Singapore Business Federation (SBF), which represents 18,000 companies, warned of "devastating consequences" for SMEs should there be further moves to restrict the flow of foreign workers here.

The federation's chief executive Ho Meng Kit said not enough attention has been paid to the risk that productivity cannot rise fast enough to make up for the slowdown in manpower growth.

"If you have very low productivity, how are firms going to reward and raise wages? If you don't raise wages, you are jeopardising median wage increases for the man on the street," he said.

Mr Ho said many small firms are still unprepared for the slower growth of manpower.

"It's like an earthquake that happens in Japan and seven hours later, the tsunami hits Hawaii. It takes a while but it's going to happen," he said.

"We are preparing for the wave. We want to save as many companies as we can, and we hope many will survive."

ASME urges Govt to examine impact of foreign talent inflow
By Wong Wei Han, TODAY, 4 Feb 2013

Small and medium enterprises (SMEs) are calling on the Government to examine whether there are enough quality jobs for Singaporeans who may have lost job opportunities in the Professionals, Managers, Executives and Technicians (PMET) sector due to the inflow of foreign talent.

In a statement released yesterday responding to the White Paper on population, the Association of Small and Medium Enterprises (ASME) cited a recent survey which found that the majority of white-collar professionals here would consider going overseas for better opportunities, indicating discontentment among PMETs.

“Is the public outcry (against foreign workers) over the abundance of lower skilled foreign workers, such as construction workers and cleaners, or is the outcry more targeted at foreign talent taking jobs away from Singaporean PMETs and putting greater downward pressure on salaries and job security of older PMETs?” the association asked.

If the unhappiness about foreign manpower lies at the PMET level, then the Government’s moves to tighten foreign worker inflow so far “threaten the survival of a good number of SMEs in Singapore”.

In this case, “the foreign labour quotas in place for lower-skilled workers should be re-examined and perhaps relaxed,” it added.

The White Paper projects that two-thirds of Singaporeans will take up PMET jobs by 2030, while total workforce growth will slow to 1 per cent due to demographic shifts. Meanwhile, the Government is planning to further slow the inflow of foreign manpower.

Referring to the same survey — which was released last week by recruiting firm Ambition, the ASME said that it showed the importance of Government and company policies in attracting and retaining individuals.

“We, therefore, call upon the Government to provide SMEs with more incentives to develop and improve their human resource systems and processes,” it added.

“Due to their size and resource constraints, many SMEs face difficulties in managing human resource. To attract and keep talent, SMEs need more resources to address employees’ problems and to provide better work-life balance, for instance,” ASME President Chan Chong Beng said.

“Without such ability, companies will likely see high employee turnover rate, which makes them less willing to send staff for training. As a result, we see a vicious circle, where productivity improvement remains a challenge.”

The association also felt that the White Paper’s projection of 3 per cent productivity growth this decade and 2 per cent in the next was “overly optimistic”.

Noting that companies continue to grapple with shrinking margins and resources, it said that a reckless drive for higher productivity in this context may lead to higher costs and even inflation.

“If these productivity gains do not materialise, the Government must be prepared to relax its tight control over the workforce to prevent the economy from being adversely affected,” the ASME said.

“A buffer in manpower supply is critical to enable both the economy and local SMEs to better respond to rapid and multifaceted changes in external and internal economic conditions.”

The association also recommended that a National Jobs Index be created to assign a score to various jobs according to different levels of acceptability by Singaporeans, and degrees of importance to the national agenda.

For example, jobs Singaporeans shun but are necessary or important to Singapore, such as construction work, will be rated higher. The higher indexed jobs should be assigned a lower levy and given a higher quota and vice versa. Such an index would “facilitate a statistical and objective gauge” of whether Singapore meets its foreign manpower policy objectives, the ASME said.

Unions weigh in on White Paper
They seek assurances that good jobs and wages, quality of life will not be affected
By Toh Yong Chuan, The Sunday Times, 3 Feb 2013

Union leaders have voiced their concerns about the impact of a growing population and slowing economic growth, and called on the Government to ensure good jobs and wages and to put Singaporeans' interests first.

They did so in a closed-door dialogue with labour chief Lim Swee Say on Friday, three days after the release of the White Paper on Population, which projects up to 6.9 million people here by 2030.

The National Trades Union Congress (NTUC) yesterday released a statement summing up the discussion, which was attended by leaders of 20 of Singapore's largest unions.

Saying that they spoke for the workers they serve, the union leaders called on the Government to focus on five key areas.

First, keep unemployment low and fend off wage stagnation as economic growth slows to a projected 3 to 5 per cent up to 2020, and 2 to 3 per cent from then to 2030. Also, pay special attention to vulnerable workers to ensure they too can have better jobs and pay.

Mr R.K.S. Nachiappan, general secretary of the Union of Power and Gas Employees, told The Sunday Times that unionists want to hear about strategies to raise salaries and ensure Singaporeans take up the better-paying jobs.

Second, assure Singaporeans that the infrastructure of 2020 and 2030 will be better than that of today. They singled out three areas for improvement; availability of affordable housing, reliability and adequacy of public transport and in health care, shorter waiting times and costs.

Third, Singaporeans' interests must come first, whether in education, health care, jobs or wages. Their standard of living and quality of life must get better, not worse.

Mr Ong Choon Fatt, a branch official with the Food, Drinks and Allied Workers' Union, said locals must get help to upgrade their skills.

Fourth, the Government must make sure a larger population does not lead to higher inflation or a less sustainable environment.

Fifth, there must be all-round and continued engagement on the White Paper, and regular reviews, to encourage citizens' trust and involvement in building the future together.

Responding, Mr Lim, NTUC's chief, assured union leaders that the White Paper is indeed an opportunity for the labour movement to work with the Government on Singapore's future.

He urged them to take a long-term view: "We can maximise the upside and minimise the downside of a growing population to better the lives of Singaporeans."

Yesterday, two days before Parliament starts its debate on the Government's population road map, two ministers assured Singaporeans that the Government has planned ahead.

Health Minister Gan Kim Yong said a plan is already in place to ensure enough health-care capacity by 2020, for a larger and ageing population. His ministry is also now starting to plan for the decade beyond that.

Minister for the Environment and Water Resources Vivian Balakrishnan said that thanks to technology, he can confidently reassure Singaporeans that the country will not run out of water in 20, 30 or even 50 years.

Advocacy group Aware expressed concern that the Government had once again focused on economic growth rather than the well-being of people, as the main determinant of population size. It urged the Government to conduct a proper public consultation before seeking Parliament's endorsement of the proposed policy.



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