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.
The China-Singapore Free Trade Agreement
In reference to China-Singapore Free Trade Agreement (CSFTA) 23 October 2008: http://www.fta.gov.sg/fta_ceca.asp?hl=6
"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."
Due to the currency exchange, 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 be able 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 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 for 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 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 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? Hint, “restrictions cannot be imposed on persons employed in a particular service sector”
The 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 where, professionals from India and Singapore can work in each other’s 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, 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 based on the following article reported on the 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 PMETs (people categorized as Professionals, Managers, Engineers and Technicians) losing their jobs to foreign workers because companies rather employ based on 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 lose 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 however, seems to be sorely lacking in our own leaders.
Singapore will invest Billions of Dollars to create more jobs - for India and China
As, mentioned before, China, India and Singapore will be reviewing their FTA agreements. In the earlier FTA agreement, Singapore may have traded its job market for its GLCs and SWF to enter China’s and India’s market.
Since the earlier agreement stated, “no restrictions should be imposed” in terms of movement of goods, services, labour and companies. Our GLCs and SWF have been heavily investing in Chinese and Indian Companies and setting up shops in China and India, while the citizens of China and India have been coming to Singapore in search of jobs but not vice versa.
However, in the coming FTA review, Singapore has nothing much left to offer to India and China, as Singapore’s job market is reaching its saturation point, if recent rhetorical reports are to be believed.
So with a tightening job market what else can Singapore offer to ensure long term access to China’s and India’s markets? Ingeniously, Singapore will create more jobs in China and India, instead of creating more jobs in Singapore.
China
Barring any food scares like the bird or swine flu, generally, Singapore’s external food sources are stable. However, costs can fluctuate depending on indirect global forces such as Oil prices or Natural disasters.
In fact, Singapore is one of the top waste producers in terms of food. (ref: http://foodwasterepublic.com/category/blog/2010/03/introduction-dirty-secrets-of-a-food-paradise)
So, it shows that Singapore do not have much of an issue in importing food.
Moreover, Singapore has invested much in sustainable technology for water, aquaculture and agriculture to reduce Singapore’s dependency on food and water imports. This is based on the assumption to ensure price stability and security.
So it boggles the mind, the need to invest billions for a huge farm project in China (ref: Straits Times, 22 May 2010 or http://wildsingaporenews.blogspot.com/2010/05/singapore-eyes-huge-china-farm-project.html)
The China Jilin (Singapore) Modern Agricultural Food Zone will take 9 months to study and 15 years to build completely and is projected to cost $22.7 Billion.
AVA's chief executive Tan Poh Hong comment it will benefit Singapore by strengthening the resilience of its food supply hold no water, as it was let slipped, “for finding a ready market for its produce, Jilin is close to some of Asia's most densely populated cities, including Shanghai, Beijing, Seoul, Tokyo, Dalian and Tianjin”.
There is no mention if jobs will be open in the farm project for Singaporeans. Admittedly, Singaporeans may not want to work as farmers, but the project would need managers, engineers, or top-tier vacancies which our PMETs have the skills and qualifications to do.
But it can be assured jobs will be aplenty for the citizens of China in the farm project.
India
Ever since the CECA was signed in 2005, Singapore’s GLCs and SWFs have been snapping up Indian companies with almost no impunity. (ref: http://www.pureportals.com/Default.aspx?alias=www.pureportals.com/glcwatch)
However, if recent reports are to be believed, India is using the opportunity during the FTA review, to slap a 10% cap in joint holdings with Indian companies. (ref: http://in.biz.yahoo.com/100607/50/bavqn4.html)
This contravenes the earlier FTA agreement.
Succinctly, India has asked Singapore to invest $2 Billion dollars in infrastructure projects. (ref: http://online.wsj.com/article/SB10001424052748703302604575294120593747804.html?mod=WSJ_latestheadlines)
India is probably taking a leaf from China, with recent reports that Singapore will be investing Billions in the farm project in China.
(As FIFA must have taken a leaf from Singtel’s massive bid for the EPL by upping their bidding price for the World Cup coverage)
We should not be surprised if the 10% cap may magically disappear if Singapore approved India’s request for a ‘small’ donation to its road-building projects.
As Mr David Cohen, director of Asian Economic Forecasting at Action Economics, says, “India's economic growth is expected to surpass every other economy except China, and that will generate substantial infrastructure need. That should make it an attractive investment opportunity for Temasek".
Again, there is no mention if jobs will be open in this project for Singaporeans. But it can be assured jobs will be aplenty for the citizens of India in the infrastructure projects.
In summary, in their pursuit for higher GDP (which is tied to the ruling elites’ salary and bonuses), massive amounts of money are pumped into projects in foreign soil by its GLCs and SWF while its own domestic industries are stagnant or floundering.
Shouldn’t the authorities spend the billions here in Singapore? To ensure that its citizens have access to quality jobs and jobs security?
So why is it being diverted away that does not seem to benefit its own citizens, when the initial capital of the GLCs and SWF was from its citizens own money in the form of taxes?
A Singaporean Patriot
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