Fewer foreign workers in five years, says MM

Govt will upgrade Singaporeans' skills to make up for dip

By Kor Kian Beng

FIVE years: this is the time period Singapore will take, from now, to scale back its need for foreign workers.

This timeframe was given yesterday by Minister Mentor Lee Kuan Yew, the first minister to put a time line on the Government's pledge since last year to reduce the inflow of foreign workers.

To make up for the dip in foreign workers, the Government will invest in upgrading the skills of the workforce, with contribution from employers, he said, during a dialogue at an international housing conference here.

'The next five years, we have decided we will tier down our need for foreign workers.

'We will pay for help to educate people, continuing education and training, which means a lot of money, probably co-payment with the employer to send him (the worker) for training so that he's paid whilst he's doing the training, then he increases his skill.'

MM Lee was responding to Mr Steven Choo, chief executive of the Real Estate Developers' Association of Singapore, at the event to mark the Housing and Development Board's 50th anniversary this year.

Mr Choo had asked Mr Lee if he thought the HDB would be able to catch up with Singaporeans' rising aspirations.

The Minister Mentor pointed out that rising aspirations were a worldwide problem, even in wealthy countries such as Switzerland and Finland.

Meeting such needs for higher living standards requires a highly skilled and educated workforce and a government that keeps raising their education and skills, he added.

Also, it needs to attract 'investments of a higher return or higher value-added investments in products and services'.

Said Mr Lee: 'Every government wants to do that. Can it be done? That's the difficult part. You got to motivate your people, raise their standards of education.'

An economic report he read recently showed Singapore scored well on attracting foreign investments, he said.

But the report said Singapore's productivity was around 51 per cent to 52 per cent, just slightly above Hong Kong's, at about 50per cent, he noted.

Japan, at 100, is the benchmark.'How do you get it from 51, 52, not to 100 but say, to 85, 86 to 90? It's a generation's job: educating them, continual education,' he said.

The economy of the future, with fast-changing product cycles, requires a person to continually ramp up his skills and knowledge.

Singaporeans who cannot catch up will be stuck with low salaries because they are 'not more productive', he said.

'We've grown in the last five years by just importing labour. Now, the people feel uncomfortable, there are too many foreigners.

'Trains are overcrowded with foreigners, buses too, property prices have gone up because foreigners with permanent residence are buying into the market.

'The answer is simple: We check the flow of foreigners, raise your productivity, do the job better, so that instead of two workers, eventually you'll do it with one worker, like the Japanese do.'

The foreigner issue had been highlighted by Prime Minister Lee Hsien Loong last August, when he said there was a limit to the intake of foreigners and he could not imagine their population doubling to two million.

Lately, government leaders had also pointed out the need to improve productivity and the Economic Strategies Committee is expected to make recommendations on it in its report due on Feb 1.

MM Lee said workers needed to understand that by working harder, they contribute to their companies' success which, in turn, benefits them.

But getting them to understand this is a challenge, he added.

'Can we do it? Yes, I think we can. Will it take time? Ten years, 15 years, one generation, but you've got to keep at it.'

Source: Straits Times, 28 Jan 2010.