Singapore for open-door policy on foreign workers

Acting Manpower Minister Ng Eng Hen vigorously defended Singapore's long-running campaign to attract foreign workers, saying a restrictive policy would force firms to relocate and seriously damage the economy.

Ng addressed the issue in parliament amid a rising clamor to clamp down on foreigners working in Singapore as the city-state battles through an economic downturn that has led to near-record high unemployment of 4.5 percent.

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"We cannot force companies to hire more Singaporeans by depriving them of foreign workers," Ng said.

"If we make it harder for companies to hire workers whom they need, we will make it more difficult for companies to operate in Singapore.

"This will discourage them from growing their business here. Beyond a certain point, companies will relocate in order to survive, or if they are unable to relocate they will close down.

"Our economy will shrink and Singaporeans will lose even more jobs."

Ng warned that in other non- economic areas, such as the health sector, the impact of staff shortages if foreigners were restricted could be "serious".

Ng cited the role played by foreign nurses during the deadly Severe Acute Respiratory Syndrome (SARS) viral outbreak that battered Singapore from March to May this year.

"During the SARS crisis, no one would have blamed the foreign nurses if they had chosen to return to their home country. Instead, many foreign nurses stayed and risked their lives taking care of patients with SARS," he said.

Singapore, a tiny, trade-dependent city-state of 3.2 million citizens and permanent residents, relies on a large pool of foreign workers to staff its banks, hotels, factories and other firms.

Foreigners manage many top companies here, while labourers from China and Bangladesh are the mainstays of the construction industry.

Professionals, engineers and architects from Malaysia, the Philippines and other countries are also prominent.

But with the unemployment rate at near 20-year highs, there have been growing calls to review the open-door policy.

The debate was kick-started after two university economists released a study showing that four out of three jobs went to foreigners between 1997 and 2002.

The economists later said their figure was wrong but the admission failed to dampen frustration among locals.

Ng nevertheless reiterated government figures that from 1998 to 2002, nine out of the 10 new jobs created went to locals.

He added that Singapore's economy was dependent on the economies of its global trading partners.

"Jobs will return when that economy picks up. They will not come from keeping foreign workers out," he said.

In the meantime, Ng told Singaporeans they could not afford to be choosy about the jobs they took.

Foreigners take about 200,000 jobs in the relatively low-paid manufacturing and services industries, with another 140,000 foreign maids and 150,000 construction workers.

"I encourage Singaporeans to take up these jobs. I appreciate that some of these jobs are not attractive because of lower pay or working conditions," he said.

"But we have to be realistic and Singaporeans need to adjust to market conditions too."