Your example seems to me to only badly affect those who live in
a way that their salary is completely utilized, leaving nothing to
savings.
My argument is that say the foreign employee and I both save 500
dollars a month. What he can do with that 500 dollars saved and
sent back home exceed what i could buy (In the case
of my Chinese colleague, at least 2-3 times more day to
day commodities)
If, at the end of 10 years we both save 100k(Given room for
raises and promotions), he could go back and get a decent sized
home and car, with some leftovers. While the 100k i have couldn't
even pay off 50% of my housing and car loans.
When they get 10% paycut, their family don't
neccessarily get hit twice more. They may not even have
to cut back on anything if they weren't blowing what they
received every month.
Your maths is logical, but it doesn't add up when you compare
exchange rate and the general costs of things where these
foreigners come from.
Don't get me wrong, i like the idea of having foreigners to
compete freely and share experiences. But that is only with the
condition that we could compete on equal grounds, right now
Singaporean males are starting off with a disadvantage.
of course, maths doesn't take into consideration the years he
spent alone in a foreign land.
Last time my friend went to Dubai to work and after 3 years
he came back and paid up his HDB. Good thing he didn't gamble due
to boredom.
My sister's maid have been working in Singapore for the last
twelve years and she really couldn't feel how her daughters grew
up, but is glad that she could sent enough money home, and
were hoping that they spend it wisely. She is lucky, so far. Her
daughter graduated as a nurse, and is now looking to work in
Singapore.
Having said all that, these people after working here for
several years, it is really difficult for them to go back and live
happily ever after in their villages.