Trade-agreements-the-main-reason-for-the-influx-of-foreign-workers
Written by:
Shafie
Why a better
economy in Singapore may mean
more unemployment for Singaporeans? It is possibly enshrined in our
Trade Agreements.
People have always
wondered why is it seems easier for foreigners to get work visas or
permits nowadays. The possible reason could be the trade
agreements our leaders so eagerly signed on, to increase
Singapore’s Growth Domestic Product (which their bonuses and salary
increments are tied to) without a thought for the negative social
consequences.
India-Singapore
Comprehensive Economic Cooperation Agreement
In reference to
India-Singapore Comprehensive Economic Cooperation Agreement (CECA)
29 June
2005: http://www.fta.gov.sg/fta_ceca.asp?hl=6
“Professional
bodies in the accounting and auditing, architecture, medical
(doctors), dental and nursing services in both countries will
negotiate agreements, within a year of the signing of CECA,
recognising each other’s education and professional qualification.
This means that upon the completion of these mutual recognition
agreements, India and Singapore
professionals from these five professions could be able to
practice in Singapore and India
respectively.”
“Professional employed in
127 specific occupations will be allowed entry and stay for up to 1
year or the durations of contract, whichever is
less.”
“Intra-corporate
transferees (i.e. managers, executives and specialists within
organisations) will be permitted to stay and work in
India and
Singapore for an initial
period of up to 2 years or the period of the contract, whichever is
less. The period of stay may be extended for period of up to 3
years at a time for a total term not exceeding 8
years.”
“Singapore
companies will have certainty when they choose to deploy
Singapore staff to help manage their Indian
operations. Skilled and qualified professionals and service
suppliers from Singapore would also gain easier
access to the vast Indian market. Similarly, this would also apply
to Indian companies when they deploy Indian staff to manage their
operations in Singapore”
The trade agreement
is supposed to be beneficial for both countries whereby,
professionals from India and Singapore can work in each other
country.
There is also freer
movement of goods and services with lesser red tape. And if you
noticed, the agreement does not impose restrictions on the number
of professionals a company can employ from either
country.
What is most
disconcerting is that India tends to import our products,
services and investments (mostly from the banking industry and for
our Foreign Sovereign Funds (SWF)) and NOT our labour, while we
import their labour but NOT their products and services>
Have anyone seen a flood of made-in-India products in our major
department stores?
This forms a skewed
economic picture, whereby, our GDP will grow because of increased
trade, but at the same time, Singaporean professionals will be
displaced by professionals from India.
In other words,
better economy in Singapore = more unemployment for
Singaporeans.
Guess who signed the
agreement that seems to disregard our well-being? Hint, he is the
son of an old man who claims he can rise from the dead.
And it may not be
over yet based on the the following article reported on
18th April 2010:
http://economictimes.indiatimes.com/articleshow/5823303.cms
“India will
seek greater access for its professionals in
Singapore in areas such as IT, health,
education and
finance in the upcoming review of the
bilateral agreement between the two countries. The second review of
the comprehensive economic cooperation agreement or CECA that was
rolled out in 2005 will begin early next month.
“Although
we managed to get access for some of our professionals in
Singapore as part of the CECA,
we will try to get more in the
review,” a commerce ministry official said.
Commerce department
is holding consultations with the industry and other ministries to
finalise how much more it could offer Singapore in exchange for
greater access in services.”
Currently, we
already have many PMETs (Professionals, Managers, Engineers
and Technicians) losing their jobs to foreign workers because
companies rather employ based on the cost factor than
acquiring qualified skilled and productive workers. If the
report from the above article is true, we may see more of our local
PMETs losing their jobs in the IT, health, education and finance
industries in the near future.
Indian leaders
should not be blamed here. For all its worth, they signed the
agreement because it benefits their workforce greatly since the
number of quality job opportunities in India is low. Leaders with
great foresight can see a good deal which is sorely lacking in our
own leaders.
http://www.fta.gov.sg/fta_csfta.asp?hl=27
“The market
access obligation means that a country cannot
impose additional market access
restrictions for these sectors,
both quantitative and qualitative.
For instance, restrictions cannot be imposed on: i) the number of
service suppliers, service operations or persons
employed in a particular service sector; ii) the
value of services; or iii) the legal structure
used.”
Trade
Agreement With China
Due to the currency
exchange, the majority of Singaporeans will not head to China just
to work in their service industry unless they are willing to uproot
and live in China with expatriate terms.
However, the
people of China will definitely want to come to Singapore to work
in our service industry to accumulate enough wealth to live
comfortably in China.
Moreover, they
don’t even have to be excessively qualified to work in the service
industry in Singapore. Based on the agreement, restrictions cannot
be imposed on the number of foreigners a company can employ even if
they are not qualified.
Close to 70% of the
world’s products are made or contracted to be made in China. So
basically, we are already buying and importing made-in-China goods
long before the signing of this agreement.
Singapore does not
have anything that China would need in terms of goods and services.
But China (as in India), do have low quality job opportunities. So,
once again we have traded our job market in exchange for a country
to open up their markets for us – mostly for the banking industry
and investments for our SWF.
As our local banks
and SWF grow, so does our GDP. However, Singaporeans,
will be displaced by cheaper foreign workers from China
working in the service industries such as Food & Beverages,
Retail and Hotel/Tourism.
In other words,
better economy in Singapore = more unemployment for
Singaporeans.
Foreign workers are
also given free training to improve their communication and skill
sets, while Singaporeans will have to pay (with subsidies depending
on the courses) for the same training.
Why do our
country insists on acquiring so many foreign workers knowing plain
well that they will displace our own local workers?
And why could
a company employ so many foreign workers so easily? Hint,
“restrictions cannot be imposed on persons employed in a
particular service sector”
http://www.fta.gov.sg/
http://www.transitioning.org/