SICC against curbing flow of workers: Population White Paper

Business body says S’poreans stand to benefit from letting in more foreigners

By Fiona Chan & Robin Chan, The Straits Times, 7 Feb 2013

ANOTHER business association in Singapore has joined the chorus of complaints about proposals to further restrict the inflow of foreign workers.

The Singapore International Chamber of Commerce (SICC) said yesterday that economic growth is not a 'zero sum game' and that with the imminent shortage of manpower, Singaporeans will actually benefit from letting in more foreigners.

'While we understand the 'foreign talent' sensitivities among Singaporeans, the economy needs to be viewed as an ecosystem', the chamber said in a statement.

'It is not a zero-sum game that pits MNCs against SMEs, or locals against foreigners,' it added, referring to multinational companies and small and medium-sized enterprises.

Rather than taking jobs away from locals, multinationals and SMEs can work together 'to create a multiplier effect in the local economy through job creation', said the chamber, whose members include a significant number of large multinationals.

SMEs hire the bulk of Singapore's workforce- about two-thirds- but many depend on MNCs as their major clients.

The SICC's statement is the latest protest from Singapore's business community, not just against the plans in the White Paper on Population to slash workforce growth by half, but also against the proposals by the Workers' Party (WP) to completely freeze foreign workforce growth till 2020 while expanding the resident workforce. The Singapore Business Federation had, on Tuesday, called the WP's plans 'disastrous' for Singapore's economy and competitiveness.

In adding its voice to those of other business groups, the SICC warned that the tight labour market is already causing wages and, in turn, business costs to rise.

This could jeopardise Singapore's position as a regional business hub, it said.

With local workers in short supply and the economy near full employment, hiring remains a challenge across both traditional sectors such as hospitality and retail, as well as new ones including biotechnology and energy, it added.

Earlier this week, nine national chambers of commerce in Singapore wrote a letter to Acting Minister for Manpower Tan Chuan-Jin protesting against the tighter curbs on foreign labour proposed in the White Paper.

The letter was made public by the Australian chamber on behalf of the others, which included the American and British chambers.

These three national chambers also reported this week that some of their member companies had either moved out of Singapore as a result of the labour restrictions, or were planning to do so.

SNEF backs productivity-led growth strategy in White Paper
By S Ramesh, Channel NewsAsia, 7 Feb 2013

The Singapore National Employers Federation (SNEF) said under the projections mapped out in the White Paper on Population, it expects the contribution of productivity growth to GDP growth to increase to two-thirds from 2010 to 2030.

This is up from the one-third contribution of the past decade.

SNEF said it supports this productivity-led growth strategy as it will sustain business competitiveness and help lift wages to meet the rising expectations of Singaporeans.

It added: "As highlighted by the White Paper, two-thirds of Singaporeans would be in PMET jobs by 2030. This calls for higher-skilled jobs which will help raise productivity. Employers need to restructure and create jobs that match the better qualifications and skills of PMETs, and better manage and motivate them to achieve higher output per employee.

"The federation concurs that more has to be done to restructure low-wage, low-skilled jobs to share the benefits of a growing economy with the one-third of the Singaporean workforce in non-PMET jobs. In this respect, SNEF supports sector-specific measures to raise the skills, employability and incomes of low wage workers."

SNEF explained that while companies can aim to raise productivity by as much as possible, workforce growth is still needed to enable businesses to expand and workers to have more and better job opportunities. And without additional foreign workers to support economic growth, Singapore would lose the dynamism and vibrancy in the economy.

SNEF cautioned it would be concerned over any further curbs on foreign manpower. It also said that new proposals to further slow down the workforce growth to 0.6 per cent per annum from now to 2020, which meant zero growth in the foreign workforce, will have dire consequences for businesses, new investments and jobs.

The employers' body also warned that the proposal implied no additional foreign construction workers to build new infrastructure and no new skilled foreigners for new investments and to spur new industries, which will create new and better job opportunities for Singaporeans.

SNEF also supports more age-friendly and family-friendly workplaces for older workers and women to boost the shrinking workforce.

It added that the employers' collective and decisive response will assure their tripartite partners -- the government and the labour movement -- that employers are partners in creating an environment in which businesses can thrive.

Singaporeans can also achieve their career aspirations and the nation can continue to be a globally competitive and dynamic economy.

Related

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Call to relook curbs on foreign labour inflow

9 foreign chambers oppose labour curbs

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WP proposals on foreign labour 'disastrous' for economy: SBF