金闲评
Friday, August 03, 2007
  Singapore goes back to its roots for skilled staff

By John Burton in Singapore
Published: August 2 2007

Gautam Banjeree is the type of foreigner Singapore wants to attract. The Indian-born accountant left London after university in the early 1980s and moved to the city-state, where he became a citizen in 1990.

Now the head of PwCAsia, he was appointed by the government to serve as a non-voting parliamentary member to promote the interests of Singapore's growing immigrant population. "We need to get overseas talent to sink roots here," he says.

Singapore wants a lot more people like Mr Banjeree. Its birth rate, once one of world's highest, is flagging. Young, educated Singaporeans are emigrating to seek better-paying jobs or more freedom from restrictive rules at home. If present trends continue, the local population could begin to shrink by 2020.

Singapore's leaders view the situation with alarm. A declining population would result in economic stagnation. Their solution is to admit many more foreigners with the goal of increasing the population to 6.5m from 4.5m in the next 20 years.

The main focus: attracting skilled workers from China and India, the countries that provided the waves of immigrants who helped to turn Singapore from a 19th-century swamp into the financial centre it is now.

If foreign-born permanent residents are included, Singapore has Asia's largest population of foreigners as a proportion of its residents. They make up more than a quarter of its population and a third of the workforce. Since 1990 the foreign population has expanded by 7.4 per cent annually to 1.2m against a 1.1 per cent rise for all Singaporeans.

While Singapore seeks to lure skilled workers with an eye to the future and competing with rival Hong Kong, the reality is that most of those who have arrived in recent years are a rotating underclass of cheap labour from the Philippines, Indonesia and Bangladesh.

Of the 670,000 foreigners working in Singapore, 87 per cent are employed in low-paid jobs as construction workers or domestic maids.

As the government chases skilled workers, "state policy is opposed to long-term immigration [of unskilled foreign workers] and directed at ensuring that this category of migrants remains a transient workforce", says Brenda Yeoh, a geographer at the National University of Singapore.

Maids and labourers normally receive work permits for one or two years, cannot bring in spouses or children, are forbidden from marrying Singaporeans and are de-ported if they are pregnant.

The government is hoping to change the foreign population mix by attracting more educated workers needed to fill jobs in service sectors such as private banking and finance, biotechnology and education. It wants many of them to become citizens or permanent residents, with the goal of having 240,000 of them gain this status in the next five years.

To do so, the government is trying hard to shed Singapore's dull image in favour of a global city with buzz. It has eased strict rules governing nightlife and will soon open two of the world's most expensive casinos. The development of cultural activities, is receiving attention after years of neglect. "Singapore is selling itself as a lifestyle centre" to attract more middle-class workers, says Christine Ong, the Singapore country head for UBS, the investment bank.

The focus on foreign talent has provoked a backlash, with the income gap widening to its greatest since independence in 1965. A newspaper poll found 43 per cent of Singaporeans believed the government cared more about foreign professionals than the local population, with their biggest worry the loss of jobs to outsiders.

Officials say the influx will help job creation by developing service industries and start-up companies that can hire local workers. But some economists suggest that Singapore should cut the number of low-skilled foreigners to promote local hirings and higher wages. As one of the most densely populated countries, the addition of 2m people threatens to strain resources.

It is likely to increase Singapore's dependence on imported food and water, while raising prices for housing, transport and public services that would undermine the government's strategy of making the city-state cost competitive. Housing prices, for example, are already expected to go up 30 per cent this year while rents for office space in the prime business district have doubled in the past year.

The biggest challenge that Singapore may face in the long term is to maintain the social stability that the government has always prized. "Foreign labour policies might be tightened if political stress emerges in the future," says Chua Hak Bin, regional economist at Citigroup in Singapore. "Such a risk cannot be dismissed as foreigners could reach half of the total population."

Reclamation projects trouble neighbouring states

The size of the Isle of Wight, Singapore has for decades sought to increase its space through reclamation projects that have already added 20 per cent more land in the last 40 years.

But plans to increase its population by 2m people to 6.5m are likely to fuel pressure to claim land from the sea and could rekindle disputes with neighbouring Malaysia and Indonesia.

A decision by Indonesia to withhold sand shipments for several months earlier this year exposed Singapore's vulnerability. Although supplies have since resumed, any cuts would jeopardise Singapore's ambitions to increase its land by another 14 per cent over the next 50 years.

Singapore's preferred method of reclamation has been to dump sand into water or coastal swamps and build a wall around the area to prevent erosion.

Singapore also has to contend with complaints from Malaysia, which says that the reclamation projects are affecting maritime boundaries and shipping lanes, a concern shared by Indonesia.

At home, environmental groups also argue reclamation is destroying the island-city's fragile ecosystem.

But visitors will soon see the benefits of reclamation when Singapore's biggest casino resort and a new financial district open on space once under the city's harbour - part of efforts to compete with rival financial centre Hong Kong.

 
Comments: Post a Comment



<< Home

ARCHIVES
August 2006 / September 2006 / October 2006 / November 2006 / December 2006 / January 2007 / February 2007 / March 2007 / April 2007 / May 2007 / June 2007 / July 2007 / August 2007 / September 2007 / October 2007 / November 2007 / December 2007 / January 2008 / February 2008 / March 2008 / April 2008 / May 2008 / June 2008 / July 2008 / August 2008 / September 2008 / October 2008 / November 2008 / December 2008 / January 2009 / February 2009 / March 2009 / April 2009 / May 2009 / June 2009 / July 2009 / August 2009 / September 2009 / October 2009 / November 2009 / December 2009 / January 2010 / March 2010 / April 2010 / August 2010 / October 2010 / November 2010 / February 2011 / March 2011 / April 2011 / June 2011 / July 2011 / October 2011 / November 2011 / December 2011 / January 2012 / February 2012 / July 2012 / December 2012 /


Powered by Blogger