How does the policy on reducing inflow of foreign workers affect businesses?

On local labor's end, does the policy guarantee that Singaporeans will be preferred over foreign workers?

Mark Chew Founder and Principal Strategist Giants Learning Technologies Pte. Ltd.

The latest policy in controlling the number of foreign workers in Singapore is a measured response by the Singapore government in ensuring that Employers in Singapore continue to employ Singaporeans. This is a response that effectively helps stems the flow almost immediately. However a longer term view of the challenge must be considered.

First of all, we have to recognise the type of jobs that Singaporeans like to do, and those that they shun. An example of industries that Singaporeans would shun would be the construction industry, cleaning and even the front-end sales industry. By drastically curbing the flow of foreign workers, these industries would be hit, as cost would definitely increase.

In an increasingly educated society, Singaporeans had been shaped to look towards becoming PMETs, and naturally shun those jobs that require long hours and jobs with perceived lower salaries.

Singaporeans may prefer other industries such as Engineering, IT, Accounting and Finance. However there is also no guarantee that Singaporeans will be be preferred over foreign workers. Even with this policy.

What must be addressed is the employability factor of Singaporeans. They must be properly equipped to meet the needs of the changing job climate. Placing their educational qualifications aside, the government needs to examine the appropriate matching of Singaporeans' skills to that of what employers really want.

An example would be, are our Engineers being qualified to only take up Project Managerial appointments or to engage in the Creative and Research & Development fields?

The government may want to consider using the appropriate solution to tackle the challenges faced by respective industries, rather than to apply a 'one-size fits all' strategy. "

Chris Mead, Regional Director of Hays in South East Asia

Finding good people with the right skills remains a challenge for employers in Singapore. We are a small city state, and in the past foreign workers have been vital to overcoming our skills shortage and ensuring economic growth.

So the government’s moves to reduce foreign hires in the manufacturing and services industries will naturally see the pool of suitable candidates that employers can consider contract. Already a skills shortage exists in the manufacturing and services industries. With foreigners only allowed to make up a reduced percentage of the workforce, employers will need to look at other strategies to help them overcome the local skills shortage.

Such strategies include the up-skilling of existing staff, recruiting candidates based on potential and then offering training, and retaining mature-age workers. Such steps will require planning and investment on the part of employers.

We don’t think any one group of workers is a ‘threat’. Instead, what we can tell you is that there are many sectors such as oil & gas, IT, accountancy and finance and sales and marketing where foreign workers are needed to ease the existing local skills shortage and we would welcome any move to increase the foreign worker candidate pool in these areas.

Benjamin Yang Managing Director Balanced Consultancy

Overall, the employment rate is Singapore for 2011 seems to be quite healthy.

I mean 2% in comparison with other countries looks to be a good figure. However, that does not paint the complete picture. Let's break foreign talent down into demand factors. We hire foreign talent mostly in 2 scenarios. The senior executive level or the more entry level or for lower skilled job. For the former, I think it is understandable

In my opinion, for the lower skilled jobs and entry level graduate jobs, this is the areas of concern.
It seems that these 2 segments are where companies look to hire foreign talent when they can look to hire locally.

This is because to hire for such positions, hiring foreigners is really more cost effective. Running an SME myself, a foreign hire cost lesser and the temptation to look towards this solution is tempting for any company.

I do not think we should artificially engage in a quota system for foreign talent. This would skew market forces and it might end up causing a shortage in needed talent. Instead, we a levy system makes more sense. By needing to pay a levy for a foreign hire, this helps close the gap in terms of expected salary. And yet companies that are in urgent need of talent, can also pay that levy to meet their short term needs.

People criticize Singaporeans for asking for too much pay. While that might have some truths, this is also because of the standard of living in Singapore.

A foreign hire might have his family located in his home country where standard of living is much lower.
A local hire though, would need to pay his flat, transport, higher food cost, etc.

Therefore, I challenge the criticism that Singapore hires just want more money and that foreign hires have less expectations on pay. It's like comparing an apple to an orange. 

Maler Vilee, International Director, Training Edge® International Pte Ltd

Singapore needs to supplement existing shortages in certain industries with foreign workers. No one can deny that there are tasks that many Singaporeans will not take on as jobs. However, there are industries where Singaporeans can be re-trained and re-deployed. Due to the liberal promotion of foreign worker recruitment, employers have chosen foreign labour over existing potential Singaporean workers due to the opportunity of making profits by paying less to foreign workers. Hence, we had created a vicious cycle filling up positions with foreign workers even without giving a second chance to our Singaporeans. It questions the gracious society philosophy that the government has been promoting.

Its about time that priority is given to Singaporeans and for employers to fulfil labour shortage requirements with locals before recruiting foreign workers. Indeed, it is necessary to reduce foreign workers in areas where Singaporeans can be recruited.

What foreign group of workers is the biggest threat to Singapore local job hunters and why? It is not necessary to highlight any particular country. The retail and hospitality sector is one good example where we could cut the influx of foreign workers. I strongly believe that there are Singaporeans who could take on such tasks with proper training and guidance.