SINGAPORE: Efforts to reduce Singapore's dependency
on foreign labour are on the right track, Acting Manpower Minister
Tan Chuan-Jin said.
Writing in a post on the Manpower Blog on Sunday, he said the growth in
foreign manpower in the first half of this year slowed to 34,100 -
a seven per cent drop from the same period last
year.
This excludes foreign domestic workers.
The number of Work Permit holders rose almost 21,000 - mostly
construction workers.
Mr Tan said HDB alone will need about 30,000 construction workers
to meet the year's building programme, and the cumulative
requirement of construction workers could rise to 50,000 within the
next few years.
The number of employment pass (EP) holders dropped marginally by
700, the first half-yearly reduction since 2009 when recession hit
Singapore.
S Passes grew strongly, with more than 14,200 S Pass holders added
to the workforce.
Mr Tan said this is likely due to tightened EP requirements from
January, so companies are using S Passes to bring in more junior
level workers at the professional-managerial-executive (PME)
level.
Not counting construction workers, Mr Tan said the slowdown in the
growth of foreign manpower was more obvious - as much as 40 per
cent.
Foreign manpower excluding those in construction grew by 18,600 in
the first half of 2012, down from 31,200 for 2011.
In the blog post, Mr Tan said Singapore cannot grow its foreign
force without limits, but tightening must be done at a pace that
businesses can adjust to.
He said Singapore's rate of job creation outstripped GDP growth in
the last three quarters (2011 Q4-2012 Q2), resulting in negative
productivity growth.
And one reason for negative productivity, he said, is the
availability of low-cost foreign labour.
Mr Tan said Singapore's productivity effort must continue
aggressively.
"The balance of driving forces favours re-calibration towards even
more moderate foreign workforce inflow, to encourage companies to
pursue higher productivity business models and processes away from
labour-intensive growth," Mr Tan wrote.
He said the Manpower Ministry is monitoring the situation closely
over the next few months, and will take further measures if
needed.
And he called on companies to do their part and transform to raise
productivity and reduce the dependency on foreign workers.
"It is not just about numbers, it is about finding that delicate
balance that will deliver sustainable wage growth for Singaporeans,
growth prospects for businesses, and a societal composition that we
can accept," he said in the post.
- CNA/ck