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How FT restrictions hurt economy

And no the person saying it is not a millionaire minister or a PAP social media or msm media running dog. It’s an economist from an int’l bank.

All this talk of a recoverying economy (Example:”Singapore economy looks to rebound in 2021″and STI recovering to last yr’s highs, reminds me of what a Jap economist was saying late last yr: the FT restrictions was no good for the economy. (Skip the next 10 or so paras to “Hiromasa Matsuura …” if you know the facts and the PAP govt’s spin on the data.

First a recap of the restrictions.

Singapore tightened its labor rules last September. But there’s a problem. FTs make up nearly 40% of the labor force — far higher than in most of its neighbors.

Its citizens are also rapidly aging, meaning that by 2030, nearly a quarter will be 65 or older. If a graying Singapore accepts fewer foreign workers amid reduced interaction with the outside world, can it maintain economic growth?

According to the Ministry of Manpower, Singapore had 1,351,800 foreign workers as of June last yr, of which 14% were Employment Pass holders — professionals, managers and executives like — while another 14% were S Pass holders, or mid-level staff with skills. Almost all of the rest possessed a Work Permit, which includes laborers from lower-income countries engaging in construction and shipyard work as well as domestic helpers such as maids and nannies.

If it accepts fewer foreign workers amid reduced interaction with the outside world, can it maintain economic growth?

PM says no, saying the Government must convince the sheep S’poreans that the best way to protect livelihoods and families is to keep Singapore open for talent and business. He said, “If we just close ourselves up and send away the work pass holders, it will result in fewer jobs and opportunities for Singaporeans, and more hardship for our workers and their families.” He was speaking at the People’s Action Party (PAP) biennial conference on 8 November last yr.


PM says he understands S’porean fears

Prime Minister Lee Hsien Loong acknowledged the worry S’poreans have about job competition coming from “foreign talents”.

He said he fully understood the pressures faced by S’poreans with regard to foreign work pass holders competing against Singaporeans for jobs in Singapore.

———————————————————————

But’s that not juz PAP propaganda.

Hiromasa Matsuura, a Singapore-based economist at Mizuho Bank, said there are two ways the restrictions could weigh on the economy.

“If a foreign worker’s role is not successfully replaced by a local, the growth of the total labor force would weaken, resulting in a negative impact on the economy,” Matsuura told Nikkei. The other, he said, is that a decline in foreign workers would mean a slowdown of total population growth, which would lead to shrinkage in consumption.

“If employers’ needs and local job seekers’ needs do not match, a tightening of foreign labor rules may not be very effective,” Matsuura stressed. “The replacement of foreigners with locals should take place in tandem with the growth of relevant human capital.”

More at https://asia.nikkei.com/Spotlight/Asia-Insight/Local-jobs-or-global-talent-Singapore-faces-COVID-era-conundrum

My take: The business reaction so far suggests there is no guarantee of more jobs for locals. Our education system that screwed up?

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*From September 2020, the minimum salary requirement for an Employment Pass applicant was raised to 4,500 Singapore dollars (us$3,300) a month from the previous SG$3,900. That followed an increase from SG$3,600 to SG$3,900 in May. In the financial sector specifically, the threshold was set even higher, at SG$5,000, from December. Visa applicants in senior positions must earn even more. Similarly, the minimum salary for the S Pass was also raised to SG$2,500 from October, compared with SG$2,400 previously. “You may of course adjust your EP or S Pass employees’ salaries upon renewal,” Manpower Minister Josephine Teo told employers in a Facebook post explaining the new requirements. Still, the message was clear: “But consider the missed opportunities of building up your local employment, and the strong government support to do so,” she said.

 

Cynical Investor

Cynical Investor blogs at Thoughts of a Cynical Investor

 

 

 

 

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14 Responses to “How FT restrictions hurt economy”

  • PAP CLOSE DOWN:

    It’s true. Few Singaporeans will work for peanuts, so why not let in the hordes of FTs? They’d rather earn $300 per month than starve in their homee countries. All these maids laugh very loudly every Sunday as they hang out at Orchard.

    I think the hawker program may not work. Singaporeans and foreigners also want si nang jobs in officee. Not hard ‘get your hands dirty’ menial jobs.

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  • oxygen:

    PAST TENSE WARNED US in 2010 that “we grew the last 5 years solely by importing foreign labor”

    THAT MEANS in economic terms, we scored zero on productivity and CULTIVATED ZERO NEW ECONOMIC PILLAR or FRONTIER.

    In 2011, the then Economic Strategies Committee in its FRONT PAGE warning – our dependency on foreign labor is UNSUSTAINABLE.

    That ESC report obviously went to the museum of economic failed history and forgotten.

    Now the pandemic tell us that foreign labor infection is our hanging rope around our neck waiting for eventualities.

    WHY IS THE 61% that STUPID BEYOND INFINITY?

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  • Halimah Totally USELESS:

    It is not so much about letting in all these FTs coming in.
    Iy is about having all these 3rd world Trash coming here to take over jobs and displacing locals that are more than capable of doing the job.
    Middle management jobs are lost to CERCA Ah Nehs with questionable qualifications, bringing along their whole village here.
    And we are crowing constantly about our Unis world ranking, but grads are bypassed when it comes to getting that job.

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  • Why Need Foreign Workers ?:

    I am a Singaporean and this is what I have experienced.

    When I was selling IT solutions to the Banks etc in the early 80s I used to deal with the System Managers, System Analysts etc handling the Banks Mainframe and Minicomputers in these banks and all of them are Singaporeans. If they were not capable of doing their jobs, these Banks etc would have all gone Bankrupt.

    Now my friend who is much younger told me that when he tries selling to the Banks, all the people who he was dealing with are now foreigners eg from India. Almost 96% are foreigners except for a small % who are locals. These locals are the receptionists, clerks etc .

    WHY ? Where have all the local Technical people gone to ? Probably become taxi drivers, PHVs, Food deliveries etc. Why so many Indians ? Probably because of CECA. They are cheaper and employers can make better profits. It is definitely not becos they are good in Financial area because India was never a Financial Centre.

    This is the big problem we facing now in Singapore and our brainless PAP leaders are leading us to our death. Its time we should change our leaders as they are doing harm to all of us eg with all the countries having lockdown because of the 2nd and 3rd wave of Corona Virus we are inviting foreigners with Covid 19 to come in or transit to Singapore. Another example is having A Poly Diploma to become Hawkers. We need to take action in the next GE or all of us will be dead for sure.

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  • by importing population:

    //Its citizens are also rapidly aging, meaning that by 2030, nearly a quarter will be 65 or older. If a graying Singapore accepts fewer foreign workers amid reduced interaction with the outside world, can it maintain economic growth?//

    going by the white monkey logic, so by importing population (greater number from open-leg policy, then there won’t be even more 65 or older in the future ? or the white idiots are passing a even greater problem to the future ??

    talking about growth, if it is going to be growth by greater number of people (population), then ad infinitum you will forever need even greater number in the future to ensure growth (ponzi effect ??) you need quality growth (for individuals) – not by having greater number (from chat-ba-lang place with chat-ba-lang culture ???) hence compromising on physical space & environment lar ???

    //If it accepts fewer foreign workers amid reduced interaction with the outside world, can it maintain economic growth?//

    what reduced interactions just because accept fewer foreign workers (fewer from 10m or 500 persons ???) ??? so many countries do not have open-leg policies as great as sinkie land, they also got growth and interaction also lar ??? NOT do not want foreign workers lar BUT do not want too-much-open-leg policy lar ???

    why need to keep on growing from the need of higher population (gdp for a country as a whole) if the personal individual growth of a person (be it in wage & emotional well being) is relatively ok from a lesser population compared to the other countries ????

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  • xoxo:

    We can welcome FTs,FOREIGN talents,but what the PAP is dumping here are most FAKE talents.
    This is being confirmed by sgs losing jobs as REAL FTs- as in the past- will create jobs for sgs instead of stealing our jobs like what has been happening.And,doubled confirmed by the low productivity.

    Lee Ah Long has destroyed everything sgs built for their families.
    Can any of lee ah long’s ministers deny?

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  • left behind:

    Talking about competition, do everyone know how rubbish is this concept of competition. Competition produce scholar PAP minister who think that they are the best, refuse to listen to people and their ideas. Competition produce scholar who are clowns and useless people. And where are those useful Singaporean, they are abandon and kick out by competition. A broken system use competition to suppress talents and ideas. What we need is cooperation to bring out the best of Singapore, working together and learn from each other.

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  • opposition dude:

    Ah yes the old “We should not close our doors to aliens” line YET again. Just how many times have we heard this one already ah?

    Put simply, PAP lets in all these jokers until they form 40% of the population and then has the AUDACITY of tellng us we should not close our doors to them. Imagine that!

    So using this as an excuse they would want more of these third world people in since it brings in very good money. Please don’t forget the monthly levies paid for the work permit, S and E Pass holders by the companies hor. Do you think PAP will let up on their foreigner drive?

    Don’t bother with what PAP says, it’s all nonsense anyway. Even if the economy was red hot what good would it do to you if you are unemployed and have no money coming in? All that is needed is not to set such an ambitious target for economic growth. Focus on bringing down the high rents for businesses, GST, S&CC charges, transport fares etc so we Singaporeans can see and feel that the cost of living isn’t so high in the first place.

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  • Singaporeans R Free Riders:

    Why Need Foreign Workers ?:
    WHY ? Where have all the local Technical people gone to ? Probably become taxi drivers, PHVs, Food deliveries etc.

    Where have all the local technical people gone to ?

    You are asking the obvious.

    It is a fact that Singaporeans are lazy and unmotivated that is why there are so many Singaporeans who are free riders.

    Don’t believe me? Go ask Carrot Head Gilbert Goh.
    https://www.facebook.com/TheIndependentSG/posts/in-his-police-report-gilbert-goh-said-that-he-caught-wind-of-the-truth-when-he-w/1729913173816984/

    Singaporeans are so lazy that they cheated by using 10 years series and having plenty of tuition.

    Singaporeans should not be jealous, sour grape when your poor neighbours children like Ramesh could pass exam without using 10 years series and tuition except through sheer hard work and no shortcut.

    GE2024.PAP.Guarantee.Win.Again
    Majullah $PAP$ $PAP$ Huat$ Huat$ Huat$
    Lazy Singaporeans must be Cheaper, Better, Faster

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  • Harder Truths:

    Exactly what is the $G economy? Look closely and it is about FT working for FT that has no relevance to locals. These so-called jobs for foreign workers ar there for the current FT or future FT.

    If we remove all the FT and look only at the local-born, there is no problem. There will be enough jobs and housing and other things. There will be less congestion, less CoVID cases, more hospital space, better health care and les stress.
    \
    But this kind of thinking will mean the regime bosses will not get its million dollar salaries. Neither will all their minions in Civil Service (or rather Self Service).

    There is no real problem. Only the ones we make for ourselves by putting the problem creators in charge of this tiny island.

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  • Homeless Cat:

    You really should stop trying so hard to sound as if you know it all. It makes you look like the PAP, irrelevant and incompetent.

    Singaporeans R Free Riders: Where have all the local technical people gone to ?

    You are asking the obvious.

    It is a fact that Singaporeans are lazy and unmotivated that is why there are so many Singaporeans who are free riders.

    Don’t believe me? Go ask Carrot Head Gilbert Goh.
    https://www.facebook.com/TheIndependentSG/posts/in-his-police-report-gilbert-goh-said-that-he-caught-wind-of-the-truth-when-he-w/1729913173816984/

    Singaporeans are so lazy that they cheated by using 10 years series and having plenty of tuition.

    Singaporeans should not be jealous, sour grape when your poor neighbours children like Ramesh could pass exam without using 10 years series and tuition except through sheer hard work and no shortcut.

    GE2024.PAP.Guarantee.Win.Again
    Majullah $PAP$ $PAP$ Huat$ Huat$ Huat$
    Lazy Singaporeans must be Cheaper, Better, Faster

    GD Star Rating
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  • Soccerbetting2:

    Reported on Straits Times :Quote -”Football: Lion City Sailors sign Brazil’s Diego Lopes for SPL’s first multi-million dollar player

    The deal for Diego Lopes is the most expensive in the SPL.PHOTO: RIO AVE FUTEBOL CLUBE/FACEBOOK
    David Lee and Deepanraj Ganesan
    PUBLISHED10 HOURS AGO
    FACEBOOKWHATSAPP
    SINGAPORE – The Lion City Sailors are making waves again this season as the Singapore Premier League (SPL) side have signed Brazilian midfielder Diego Lopes from Portuguese Primeira Liga side Rio Ave for 1.8 million euros (S$2.89 million).

    The deal is the most expensive in the SPL and the first time a league club have paid a multi-million transfer fee to buy a player from a top European team….”Unquote.

    Response :FT restrictions ? Where got FT restrictions ? FT restriction is coming in through a round about way through football signed in or purchase player ? And why Lion City has so much money to buy a S$2.89 million player ? Will Singapore football standard become the best in the region with such expensive player purchase ? No ,not at all except maybe temporary raised the standard.For football do not depend on one extremely good player if the rest of the team are not good players and Singapore football is totally kelong. It is just a waste of public funds from the FAS if FAS give more grants ? And with such obvious wastage, GST can still call for rise in around year 2023 ???? There are so many things that can cut to save costs and reduce GST but the e*** Indranee Rajah ,second minister of Finance,did not cut ,why ? Kick out all the Infian beasts from our government who are not functioning !

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  • a intractable 'problem':

    //There is no real problem. Only the ones we make for ourselves by putting the problem creators in charge of this tiny island.//

    maybe that’s what the white monkey gang wants ?? while manufacturing the whole institutional system to protect themselves (white monkey idiots and gang under ownself-check-ownself), making it a ‘intractable problem’ for the average daft sinkies who are not in their team while making all the right rhetoric to fool the daft eyes of average sinkies who will be “resigned” to it and adapting to it ????

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  • for showcasing:

    //Singaporeans are so lazy that they cheated by using 10 years series and having plenty of tuition.//

    aiyoh. so does it mean many of scholars + so many in good schools scoring 7 to 58 ‘A1′s and many of them hold ‘reasonably good’ positions in garment or private sectors are all not lazy, did not do tuition, extra classes or ten-yr series ???

    //Singaporeans should not be jealous, sour grape when your poor neighbours children like Ramesh could pass exam without using 10 years series and tuition except through sheer hard work and no shortcut.//

    you mean once in a while there will be one or two (or few) for showcasing and propaganda (to ‘motivate’ the poor that such events do occur to keep their spirit up and that those poor just need to do more hard, harder, harderest work relatively than those who have better resources and connection ???) and that these exceptional kids will also help to sell the garment koyok (story line) to other poor kids ?

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